In 1975, New York City was in financial turmoil, and a now-famous headline described President Ford’s federal response: “Ford to City: Drop Dead.” Since then, we’ve overcome threats from 9/11 to market crashes to hurricanes to a global pandemic. Not only is New York still kicking, but we’ve continued to grow and thrive. But now, a new challenge threatens New York — and this time the problem isn’t the federal government’s failure to respond: Washington is itself the threat.
Congress is considering cuts that could cause 2 million or more New Yorkers to lose their health insurance, 3 million to go hungry, 50,000 children to lose day care, and 600,000 to see already unaffordable housing costs skyrocket.
Medicaid alone constitutes 43% of the state budget, and significant cuts will cause community hospitals, elder care providers, foster care agencies and drug treatment programs to close or reduce service. Many students with disabilities rely on Medicaid for the vital services that allow them to learn alongside their peers.
These cuts will be felt in every corner of the state. For example, two congressional districts with rising poverty rates — Rep. Mike Lawler’s district in Rockland County and Rep. Nick LaLota’s district on Long Island — together have over 35,000 residents who stand to lose access to food and a quarter-million who could lose health care. Meanwhile, upstate farmers are dealing with a freeze of $186 million in promised federal funds, including funds to purchase locally grown produce for food banks — hurting both farmers and the poor.
Consider a working single parent relying on Head Start for childcare, Section 8 for housing and Medicaid for health care. Eliminating one destabilizes; eliminating all three destroys. Washington’s policies would push such families deeper into poverty, and could result in the largest increase in poverty since the Great Depression.
While the impact will fall disproportionately on the poor, all New Yorkers will feel the pain. New York will need to consider raising taxes and cutting other spending to fill the gaps. The result: less funding for schools, public safety, subways and buses, roads, housing and other critical priorities. Our state will become less affordable and less safe, and families and employers will be driven away. Every employer — indeed — anyone who cares about the economic health of New York, should be alarmed.
Further, federal cuts threaten the over 13,000 nonprofits we will need to try to fill the gaps. Not only do these groups teach our children, care for the sick, expose us to the arts and feed the hungry, they are core to our state’s economy, providing 1 of 6 private sector jobs and paying $97 billion in wages.
Many have already had federal funds frozen and now face even deeper cuts. Worse, some are now threatened with having their tax status revoked or being called before Congress. Many will be forced to close their doors. You might not receive direct services from these groups, but you will feel it once they are gone.
With this runaway train hurtling north from Washington, we need business leaders to raise the alarm. It is not too late to stop it. We can choose to live in a society that invests in the infrastructure of opportunity, or we can self-inflict economic misery on millions and tank our economy in the process.
Recent reporting indicates that House Speaker Mike Johnson is backing off from the deepest Medicaid cuts due to pressure from moderate Republicans — including those from New York. It would take just a few votes in the House and Senate to avoid this man-made catastrophe. I urge business leaders to join me in calling on Washington to do right by Americans and invest in our future, and our present.
Richard R. Buery Jr. is CEO of the Robin Hood Foundation, a former deputy mayor of New York City and a longtime leader in education and public service.
