Federal cuts to the state’s health budget could be 20% higher than officials initially anticipated, thrusting public health programs further into jeopardy, the governor said Friday.
State health officials are bracing to lose more than $360 million after President Donald Trump’s administration abruptly terminated $12 billion in federal Covid-19 relief this week, according to an estimate from Gov. Kathy Hochul. The estimated total cuts, spearheaded by Elon Musk’s Department of Government Efficiency, are an increase from the $300 million reduction the governor anticipated earlier this week. The growing tally could impact a myriad of disease programs and mental health services.
The state Department of Health itself expects to lose more than $300 million for programs that monitor infectious disease outbreaks, publish real-time virus surveillance data and promote infection control in hospitals and nursing homes. The reductions will strip the state of resources needed to prepare for future pandemics, according to State Health Commissioner Dr. James McDonald.
“We were poorly prepared as a nation for the last pandemic,” McDonald said in a statement. “I see the same pattern occurring now, where decisions are made without consideration for the public’s health and well-being.”
Cuts to the Health Department extend beyond the agency’s primary function of disease surveillance. The department will also lose a Covid-19 health disparities grant from the Centers for Disease Control and Prevention that supported programs to reduce inequities in maternal and infant health and food insecurity, according to the governor’s office.
Agencies that oversee the state’s response to the opioid epidemic and mental health crisis, both of which worsened during the pandemic, also expect to lose millions for treatment and recovery. The Office of Addiction Services and Supports is preparing to lose $40 million, while the Office of Mental Health expects a $27 million reduction, the state said.
Behavioral health providers fear that the unexpected funding loss will force them to close some services, just as New York has begun to turn a corner on overdose rates and improved access to mental health treatment. Hochul has dedicated $1 billion over multiple years to bolster state mental health resources, but some of the programs she has supported could take a funding hit.
The Office of Mental Health expects to lose funding for assertive community treatment teams, street outreach groups intended to serve homeless individuals with severe mental illnesses, as well as grants to support the 988 mental health crisis hotline. The governor has supported both programs within her mental health plan.
The state’s losses add to a separate $100 million cut to New York City’s Department of Health and Mental Hygiene, and come as the federal Department of Health and Human Services announced a massive restructuring that is expected to terminate 10,000 federal employees, a move that could shift communications with local health departments.
As state officials prepare to finalize the budget for the upcoming fiscal year, Hochul has maintained that New York won’t be able to cover funds rescinded by the federal government.
“Here’s the sad truth: there is no state in the nation that has the resources to backfill these sweeping cuts,” Hochul said, pointing to New York’s federal elected officials to push the Trump administration to restore the cuts.
