Congress unveils cuts to Medicaid and food aid: What’s next for NY?

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This story originally appeared in New York Focus, a nonprofit news publication investigating power in New York. Sign up for their newsletter here.

Congress’s Bold Moves: The Future of Medicaid and Food Aid in New York

ALBANY, N.Y. — After months of speculation, Congressional Republicans have unveiled a controversial proposal that, if enacted, could drastically reshape essential programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP). As numerous Americans look to these lifelines for survival, the plan has sparked outrage and concern. What’s next for New York’s vulnerable populations?

The Rationale Behind Cuts

For the past several months, lawmakers have dodged direct queries about funding another round of tax cuts favoring corporations and the wealthy. While laying their sights on programs that support millions, legislators touted the importance of rooting out fraud and trimming waste. However, their recent suggestions depict a different narrative altogether.

An Eye on SNAP and Medicaid Cuts

This week, using a fast-tracked process known as budget reconciliation, House Republicans presented plans for significant cuts to Medicaid and SNAP — a decision that advocates argue will jeopardize the well-being of millions.

Taking food off the table for vulnerable populations to fund tax cuts for the wealthy is unacceptable,” asserted Ryan Healy, advocacy manager for Feeding New York State. With an extensive network of food banks at their disposal, the organization has actively campaigned against proposed cuts to these vital programs.

The Interconnected Impact of Medicaid and SNAP

According to Healy, these reforms will lead to inefficient aid systems that unfairly target those suffering from chronic health conditions such as obesity and hypertension. A recent analysis highlighted that approximately 60 percent of SNAP recipients are enrolled in Medicaid, while 40 percent of Medicaid participants benefit from SNAP.

The Consequences for New York

If these proposals move forward, states like New York will face tough choices as federal support dwindles and stringent eligibility criteria are imposed. This situation stands to profoundly disrupt the state’s budget, which was only enacted last week after a lengthy process.

Governor Kathy Hochul has made it clear that the state cannot absorb federal cuts, resisting appeals from legislators and advocates to bolster support for other social services now at risk.

The Power to Adapt

Despite the challenges, legislators granted Hochul the authority to enact sweeping budget cuts midyear should the economic landscape shift drastically or the federal cuts exceed $2 billion. Bill Hammond from the Empire Center highlighted that these cuts could materialize quickly, pushing New York into a financial crisis.

A Call to Action

In a unified front, Hochul and 23 Democratic governors have condemned these proposed cuts. “We are united against any attempts to gut critical programs that provide safety and health to our children, seniors, and veterans,” they announced, urging bipartisan cooperation.

The Recipients: SNAP and Medicaid Cuts Detailed

The proposed Republican cuts to SNAP and Medicaid could have profound and lasting impacts on New Yorkers. Here are some of the key figures that amplify the urgency of this matter:

Supplemental Nutrition Assistance Program (SNAP)

  • $290 billion: Congressional Republicans aim to cut SNAP by this staggering amount over the next decade, equating to nearly 30 percent of the program, which currently serves 18 percent of New York’s population.
  • $17.4 billion: This highlights the potential costs to New York over ten years if states are mandated to cover a portion of SNAP benefits, an unprecedented rollback in benefits initiated in 1964.
  • 670,000: This is the estimated number of New Yorkers who will experience a reduction or elimination of their SNAP benefits under new work requirements.
  • 75%: The portion of SNAP administrative costs New York will have to shoulder, rising sharply due to criminal exploitation of electronic benefit systems.
  • Freezing benefits: If enacted, this change may prevent updates to benefit rates amidst soaring inflation—an untenable situation for low-income households.

Medicaid Cuts

  • $715 billion: Proposed cuts to Medicaid over the next decade, which provides health coverage to over 6.9 million New Yorkers.
  • 8.6 million: The minimum number of Americans projected to lose healthcare coverage by 2034 under the proposed Medicaid changes.
  • 80 hours: The new requirement for “able-bodied” adults without dependents to engage in work or volunteer activities monthly to maintain Medicaid eligibility.
  • 10%: The reduction in federal funding for Medicaid expansion efforts if states continue to cover health insurance for undocumented immigrants.
  • $35: Out-of-pocket cost per visit for Medicaid recipients making over 100 percent of the federal poverty level.
  • 6 months: New periodic reassessments for Medicaid eligibility, creating further administrative burdens for already strained social service departments.
  • Eliminating the MCO Tax: This cut could create a significant financial shortfall for New York’s budget, leading to a $2 billion deficit.

Take Action: What Can You Do?

As New Yorkers brace for the potential impacts of these budget cuts, the importance of advocacy has never been clearer. Engage with local representatives, support community organizations, and stay informed to ensure that voices for the vulnerable are heard. The coming weeks will be crucial in determining the safety net that millions rely on—let’s band together to safeguard essential programs.

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