As New York state lawmakers hash out a budget that’s expected to top $250 billion, they’re whistling past the graveyard when it comes to GOP plans for federal funding cuts.
The state budget proposed by Gov. Kathy Hochul relies on federal dollars for everything from highway projects to Medicaid, which provides health coverage to 9 million low-income New Yorkers. All told, federal funding makes up about $93 billion – or around 37% of the state’s overall spending plan. In budget talks, Hochul and fellow Democrats who control the state Legislature have assumed funding from Washington will continue at the pace set by the Biden administration, which funneled aid to states in the wake of the pandemic through COVID-19 relief bills and enhanced Medicaid reimbursements.
But every sign from the GOP-controlled Congress and President Donald Trump indicates that the fat times are over. House Republicans plan to cut $2 trillion in spending over the next decade, with exact cuts to be specified later. Trump has called for shutting entire agencies, including the federal Department of Education. On Tuesday, Transportation Secretary Sean Duffy threatened to withhold money for the Metropolitan Transportation Authority unless transit officials specified their plans to reduce subway crime.
“The risk is across the board,” said Andrew Rein, president of the independent fiscal watchdog group Citizens Budget Commission. He said the state is spending at unsustainable levels and questioned whether there’s enough money to fund new initiatives – like Hochul’s proposal to send rebate checks to New Yorkers.
“The state may well have to deal with massive cuts and should be preparing for it,” Rein continued. “What that means is trying not to spend every cent available of cash on hand, because when cuts come down, we will need a transition plan to a new, lower level of federal spending. Having funds available will stave off a lot more pain.”
Top state lawmakers are viewing the possible cuts through a political lens.
“I'm not prepared to negotiate a budget that anticipates pain,” said Assembly Speaker Carl Heastie. “ If we have to come back and deal with pain, we'll do that with hopefully an explanation from the seven Republican members of Congress who would have to vote to do anything that hurts the state of New York.”
Hochul told reporters on Tuesday that it would be impossible to make up the lost revenue. She says she will file lawsuits to delay any reductions, and hope for Democrats to make congressional gains in 2026.
“The world can change in a better direction in 2026,” the Democratic governor said. “That’s what I’m focused on, just beyond damage control.”
Ballot Box
This week we're wondering: Should Democrats start new spending programs amid the threat of federal cuts?
Last week we asked: What do you think of Hochul’s proposals for rebate checks and a smartphone ban?
Here's what some of you said:
“Instead of a rebate check, why not reel in the outrageous electricity delivery charges?"
-Marie, Port Chester
“Smartphones and social media in general are utterly ruining an entire generation of our youth and I think something as simple as keeping them out of the classroom is the kind of common sense legislation that might actually improve people's lives.”
- Danny, Manhattan
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