Federal cutbacks could hurt NY hospitals, energy goals, much more, state legislators say

USA Today

07-02-2025

As Albany legislators begin their review of Gov. Kathy Hochul's $252 billion budget, they say they are accompanied by the largest mammal on land breathing down their necks.
'The elephant in the room is the federal government because of the degree of tax cuts they are looking to achieve,' said Assemblywoman Amy Paulin, D-New Rochelle. 'Luckily we will have a window into that as we move forward. We'll get a clue.'
Paulin, who appeared with seven other Westchester state legislators, all but one Democrats, at a Westchester County Association panel on Friday, Feb. 7, echoed statements by Senate Majority Leader Andrea Stewart-Cousins. Both were concerned that threatened cuts in federal funding could cripple the state's costly Medicaid program.
Health care was among several high-profile issues addressed by the legislators, including clean energy, affordable housing, environmental regulations, and the region's transportation system.
Federal cuts could 'decimate' Medicaid, hospitals in New York
The federal administration's attack on government spending in the three weeks following Donald Trump's inauguration comes as the Republican-controlled Congress looks to pass the president's tax-cut initiatives. They could add as much as $7 trillion to the federal deficit if the tax breaks aren't offset by spending cuts.
'What's this going to mean?' asked Stewart-Cousins. 'The conversation is whether it's on Medicaid or whether it's on social services or public protection or whether it's on the arts. These are things we consider part of the fabric of our community.'
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Among the elephants, Medicaid may be the biggest, Paulin said. The federal government currently provides 50% of funding on Medicaid health-care service. Paulin, who chairs the Assembly Health Committee, said that rate could be reduced to as little as 35%. She said that would leave New York hospitals short by $8 billion.
'All these cuts would decimate us,' Paulin said.
New York's energy goals could be in trouble
The fate of New York's 2030 climate plan also faces tough sledding in 2025.
State Sen. Pete Harckham, D-Lewisboro, who chairs the Senate Environment Conservation Committee, said the dissolution of the Clean Path transmission line project in December will make the transition to clean energy even harder. That line down the Hudson River was to bring 5 gigawatts of electricity created by wind, solar and hydroelectric to the metropolitan region, ending up in Queens.
Harckham suggested that the project's sponsor consider ending the transmission line along the Hudson in Buchanan, to tap into the lines remaining from the closed Indian Point nuclear power complex.
'We could save hundreds of millions of dollars at the Indian Point site,' Harckham said.
Is the MTA overspending or in need of strengthening?
The future of the region's mass transit system, clouded by Hochul's six-month delay of the MTA's congestion pricing plan, remains of great concern to the legislators.
The delegation's lone Republican, Assemblyman Matt Slater, R-Yorktown, said the MTA needs to find ways to stop the loss of up to $700 million in the subway system from riders who jump the turnstiles before looking to enact new measures to finance its capital budget.
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'There's so much money left on the table,' said Slater. 'All the MTA knows how to do is spend money.'
Harckham, however, warned that the mass transit system is essential to the economies of both New York City and Westchester. He said that many workers from New York City commute by train to the their jobs in Westchester.
'Our economy is reliant on a strong and vibrant MTA,' said Harckham.
On affordable housing, Albany focused on 'carrots' for now
The lack of affordable housing in Westchester remains a huge issue for local businesses in their bid to attract workers to the region, and for families looking to rent or purchase a home in the suburbs. Hochul's attempt to mandate more housing density around transit hubs in 2023 failed to gain support in Albany.
That was followed by policies that provided funding to municipalities to help lower the cost of affordable projects.
Westchester County Association CEO Michael Romita wondered if the state could fund its way out of the crisis or whether Albany needed to use both 'carrots' and 'sticks' to create more housing. For now, Hochul's program is focused on 'carrots,' with funding proposed for so-called 'pro-housing' communities that encourage construction through their land-use regulations.
'The good news is that the carrots are working,' said Assemblywoman Dana Levenberg, D-Ossining. 'We are seeing more communities apply to be pro-housing communities, but it's not really fast enough.'
Levenberg said she is working on legislation that would put more pressure on municipalities to encourage affordable housing, while cognizant of New York's vaunted home rule powers on the local level that have slowed development of affordable units.
'I'm working on legislation to sort of twist arms of our municipalities a little bit, push them to develop master plans or comprehensive plans, to come up with housing needs assessments as well as putting forth housing action plans for the gradual needs of the people who live as well as work in their communities,' she said. 'We continue to listen to our municipal leaders and we know that we have to work together.'
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David McKay Wilson writes about tax issues and government accountability. Follow him on Twitter @davidmckay415 or email him at [e-mail].