New York State Braces for $360M Hit to Health Services as Trump Administration Announces Federal Cuts

New York faces a $360M loss in health funding due to federal cuts, impacting public and mental health services.

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New York State's health services are facing significant financial losses due to federal cuts announced by the Trump administration, Governor Kathy Hochul confirmed. According to a breakdown by the governor's office, the state expects to lose over $360 million in funding for public health, mental health, and substance use services. In a statement obtained by Gothamist, Hochul described the cuts as "just plain cruel," expressing concern for the serious consequences they will have on New Yorkers.

"Slashing funding for public health, suicide prevention and addiction services is just plain cruel, and it's going to hurt everyday New Yorkers most," she said. Hochul also made it clear that other states are equally unable to compensate for these drastic financial reductions.With funds previously designated for the pandemic response no longer deemed necessary by the administration, various state health departments are earmarked for significant reductions.



The Office of Mental Health faces a $27 million shortfall and the Office of Addiction Services and Supports will be short $40 million, while the state Department of Health will face a significant $300 million loss. This loss, described by Gov. Hochul, will affect the state's ability to carry out essential functions such as disease surveillance and the provision of support to local health departments.

As stated by Dr. James McDonald, New York State Department of Health Commissioner, to CNHI, the administration's decision was abrupt, which poorly prepares the nation for potential health crises.Amid ongoing budget negotiations, Assemblymember Sarahana Shrestha voiced her belief that the state could do more to offset these federal reductions, hinting at the potential wealth within New York's economy.

The latest cuts amount to a total of $367 million "is alarming, the amount is more or less loose change for New York considering its vast GDP, the amount of money we have in reserves, and the billions we can easily raise by accepting the Assembly’s modest proposals to increase taxes on the rich, including large corporate profits," Shrestha told CNHI. She criticized Gov. Hochul for not taking the funding threats seriously enough and for an apparent reluctance to tax the wealthy appropriately to make up for the lost funds.

Furthermore, she suggested that protecting New Yorkers from the impact of such cuts should be a shared responsibility between state and federal officials.This financial upheaval comes as New York and other states across the country are still grappling with public health challenges, ranging from ongoing mental health crises to the aftermath of the COVID-19 pandemic. The Trump administration, as per statements made to NBC, has taken the stance that COVID-19 is no longer a threat, directing health services to adjust their funding priorities accordingly.

However, the administration’s perspective contrasts sharply with the reality experienced by those who depend on these soon-to-be-reduced public health services, as highlighted by officials such as Gov. Hochul and Commissioner McDonald. With the state's budget deadline of April 1st rapidly approaching, there has been no indication yet as to whether Gov.

Hochul will allocate state funds to address the impending shortfall, Gothamist reported..