July 8, 2025
Supreme Court green-lights Trump’s order for mass firings across federal government: The Trump administration can move forward with plans to fire tens of thousands of workers across the federal government, the Supreme Court ruled today. A judge in California had blocked the layoffs, finding that they would likely violate federal law. But the justices granted an emergency appeal from the administration seeking permission to enforce a Feb. 11 executive order that instructed agencies to carry out dramatic “reductions in force.” In an apparent 8-1 ruling, the high court said it was not assessing the legality of any particular agency’s layoff plans, nor any moves taken so far to implement those plans. Litigation over the downsizing efforts is sure to continue. But for now, the justices said, the administration can enforce the executive order and a memo from the Office of Management and Budget implementing that EO.
New York Democrats fret coming state budgets after Trump’s megabill passes
Major spending decisions for health care will have to be made in the coming years.
By Nick Reisman | 07/08/2025 04:45 PM EDT, Politico Pro
ALBANY, New York — Democratic state lawmakers are bracing for years of tough budgeting following the approval of President Donald Trump’s megabill.
Virtually everything in New York’s state budget stands to be impacted.
Health care services, food stamp support and housing policy will have to be recalibrated as the federal government implements spending reductions. The options are politically unpalatable for New York Democrats, who want to avoid both slashing state-level spending or significantly raising taxes.
Top Democrats in the state Legislature and Hochul have blamed House Republicans — many of whom represent swing seats — for the impact of the megabill on Medicaid and other benefits like the Supplemental Nutrition Assistance Program, known as SNAP.
“The more you read, the more terrible it is,” Democratic state Sen. Pat Fahy said. “The food pantries alone are going to take an impact given that we know SNAP is going to be cut by billions. Every hospital I talk to is worried about the Medicaid cuts.”
New York’s state budgets are often vehicles for governors to carve out policy wins and deliver more support for politically popular services like school aid. Addressing years of reduced federal aid will put that strategy in jeopardy as Democratic Gov. Kathy Hochul runs for a second full term next year.
Yet state lawmakers, at the moment, do not expect to return to Albany for a special session in order to address the financial ramifications on the state budget, which are still being determined.
State Senate officials are conducting closely watched financial assessments that are expected to be released in the coming days. Assembly Democrats will discuss the federal spending package Friday. And Comptroller Tom DiNapoli’s office said he’s ready to “assist state lawmakers as they navigate this new fiscal landscape.” Hochul’s budget office is also analyzing the impact of the megabill and stands to release an assessment in the coming days.
New York’s state budget is not due to pass until next April 1, the start of the fiscal year.
There is also some breathing room.
Some of the most significant changes to the Medicaid program won’t be felt for several years — a horizon that gives state policymakers time to prepare.
Options include finding savings to fill health care spending holes or provide people with alternatives if they are set to lose health care coverage, said Patrick Orecki, the director of state studies at the Citizens Budget Commission, a centrist think tank.
He warned, however, that all areas of the state budget will be affected by the megabill’s spending reductions.
“The size and scope of the holes the state is likely to have to fill will likely put everything in the budget on the table,” Orecki said.
New York’s state budget has mushroomed in recent years. State lawmakers and Hochul agreed to a $254 billion plan this year — a budget that is $100 billion higher than only a decade ago. Medicaid and education spending remain the two most costly items, while the budget ignored what at the time were looming Washington cuts. The governor, though, was given the authority to make mid-year budget cuts with legislative approval if there is severe economic turbulence.
The budget gap next year was previously estimated at $7.5 billion — a number that will only climb due to the megabill.
At the time of the state budget’s passage in May, top legislative Democrats warned New York would not be able to offset the spending reductions through tax hikes and instead pressured battleground House Republicans to ease the impact on New York.
Hochul kept that strategy going after Trump signed the bill last week.
“It’s a big, ugly betrayal — stripping health care, hiking costs and slashing food assistance for millions,” she said. “And it was made possible by New York’s seven Republican members of Congress. They wrote it. They endorsed it. Now they’re cheering it on, selling out the very people they were sent to Washington to represent.”
Republicans have scoffed at the Democratic complaints over the bill. Blue-state GOP lawmakers scored a political win when the bill lifted the cap on state and local tax deductions to $40,000 for the next five years. The provision, known as SALT, alters a 2017 tax law passed during Trump’s first term that previously capped the deduction at $10,000 — a move that impacted high-tax states like New York.
“Lifting the cap on SALT, 4X, is the single largest tax cut in the whole bill and that will have a profound impact on New York,” Rep. Mike Lawler said in an interview.
He dismissed the Democratic complaints over health care spending and insisted the megabill will slow growth in states like New York, which has one of the costliest Medicaid programs in the country.
“They’re saying all these people are going to lose their health care,” he said. “Where? And when?”
The following statement from NHeLP, a national legal advocacy group that works to protect vulnerable Americans, briefly describes what just took place in California as the state wrapped up its state budget negotiations and came to an agreement. The Governor of California proposed and the Legislature apparently agreed to take actions to reduce Medi-Cal coverage for certain populations in certain instances. It is important for us to monitor and understand the decisions other states are now making in light of the recently enacted federal budget reconciliation bill. It is especially instructive to note what other ‘blue states’ are doing. (Note: In the statement below UIS = Unsatisfactory Immigration Status)
On June 30, Governor Newsom finalized California’s budget based on negotiations with the Legislature. While the final budget substantially improves upon the Governor’s initial May Revise budget proposal it still makes harmful cuts to the state’s Medi-Cal program. The National Health Law Program (NHeLP) is disappointed that many of the proposed cuts in the May Revise were maintained in the final budget. While NHeLP appreciates the tough decisions the Governor and Legislature had to make, targeting Medi-Cal coverage is a step back from the progress our state has accomplished as a leader and champion of health equity.
The budget discontinues health coverage for some immigrant families beginning January 1, 2026, by imposing a Medi-Cal enrollment lock out for undocumented individuals 19 and older. Those who are already covered will have to pay a $30 monthly premium starting in July 2027; this is unaffordable for individuals with low incomes.
“While we are relieved that the final budget preserves long-term care services and In Home Supportive Services for our immigrant population, the bill eliminates dental services for individuals with UIS beginning July 2026. These cuts are a retreat from the hard-fought wins of California’s Health4All program, which brought the state closer to achieving near universal health coverage,” said Skyler Rosellini, Assistant Director of California Policy.
In the midst of federal efforts to block Planned Parenthood from Medicaid, we appreciate the state’s commitment to reproductive health services. We are also pleased that California’s final budget rejected the proposed $2,000 asset limit, instead landing on a much more reasonable amount at $130,000. Still, reinstating an assets test will harm older adults and people with disabilities who are subject to the asset test in order to access Medi-Cal coverage.
For Immediate Release: 7/8/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL ANNOUNCES NEW REGULATIONS NOW IN EFFECT TO HELP NEW YORKERS ACCESS BEHAVIORAL HEALTH TREATMENT
Network Adequacy Standards Aimed at Improving Access to Mental Health and Substance Use Disorder Care
Regulations to Help Millions of New Yorkers Covered by Medicaid Managed Care, Child Health Plus, Essential Plan, and Commercial Health Insurance Plans
Enhanced Regulations to Make Mental Health Care More Affordable by Increasing Access to In-Network Care
Governor Kathy Hochul today announced that new network adequacy regulations give New Yorkers with qualifying health insurance plans access to an initial outpatient appointment for behavioral health care within 10 business days of the request. These new consumer protections also require these plans to post up-to-date and accurate lists of in-network providers on their websites, which will help to eliminate inaccurate or misleading directories.
“New Yorkers in need of mental health or substance use disorder treatment should not be forced to wait months for essential care or to cover these costs themselves when their plan doesn’t include any available providers,” Governor Hochul said. “These new regulations will help remove barriers that often force individuals and families to pay out-of-pocket for care or forgo treatment altogether.”
As of July 1, New Yorkers covered by Medicaid Managed Care, Child Health Plus, and the Essential Plan are entitled to these important consumer protections for appointment wait times. For New Yorkers covered by commercial health insurance plans, these wait time standards will take effect on a rolling basis as their policies are renewed, modified, or purchased on and after July 1.
The regulations also require plans to have dedicated employees who can help their members find an in-network provider. Additionally, the plans must provide a list of available in-network providers within three business days, following a member’s request.
New Yorkers unsure of their coverage should contact their insurer or employer. Those needing mental health or substance use disorder services should also check their health insurance policies for a list of what is covered.
Plans must post an accurate and up-to-date directory of their provider network, including health care professionals or facilities, the provider’s location, telehealth options, languages spoken, any restrictions concerning the conditions treated or ages served, and facility affiliations, among other information. Accurate directories will help to eliminate so-called ‘ghost networks’ –ones that give the appearance of offering in-network options, but instead list inaccurate information or providers that aren’t taking appointments.
New York State Department of Financial Services Superintendent Adrienne Harris said, “This regulation is a significant step toward getting New Yorkers the critical care they need, when they need it. From banking, to insurance, to cryptocurrency, the Department will continue working to build a more equitable, transparent, and resilient financial system for all New Yorkers.”
New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, “These regulations remove barriers that either slowed or prevented New Yorkers from accessing critical behavioral health care services. Ensuring timely access and adequate networks of providers by plans and commercial insurers, we enable individuals and families to have access to high-quality mental health and substance use services whenever needed. These new regulations reflect Governor Hochul’s commitment to expanding access to behavioral health care statewide.”
New York State Health Commissioner Dr. James McDonald said, “Timely access to behavioral health care can be life-changing, and in many cases, lifesaving. These new regulations help ensure that all New Yorkers, regardless of their type of coverage, can access the mental health and substance use care they need, when they need it. I thank Governor Hochul for her unwavering commitment to protect the health of New Yorkers and advance health equity across the state.”
New York State Office of Addiction Services and Supports Commissioner Dr. Chinazo Cunningham said, “These new regulations will make it easier for people to quickly access the addiction and mental health care and resources they need. By continuing to remove barriers to these services, and strengthening consumer protections for those accessing help, we are continuing to support Governor Hochul’s vision to improve services across the state and help all New Yorkers live healthier lives.”
State Senator Nathalia Fernandez said, “While the federal government pulls back from their responsibility to protect health care, New York is moving forward. These new regulations are about making sure coverage means real, timely care. I thank Governor Hochul for taking action to strengthen access to mental health and substance use care. That’s the kind of leadership this moment demands.”
The new regulations also provide avenues for consumers to file a complaint against plans or insurers not in compliance. New Yorkers covered by Medicaid, Essential Plan, or Child Health Plus can contact DOH; those with state-regulated commercial insurance coverage may contact DFS. For more information about mental health and substance use disorder treatment coverage requirements and protections, visit here.
The Community Health Access to Addiction & Mental Healthcare Project or ‘CHAMP’ is a resource available to help people with insurance issues related to substance use disorder and mental health care. CHAMP can answer questions, help file complaints against insurance companies, and assist with insurance denial appeals.
Governor Hochul also secured $1 million in the FY 2026 Enacted State Budget to help enforce state regulations so that insurers provide the mental health care and substance use disorder coverage their members deserve. This includes new resources to strengthen compliance and oversight, educate consumers and providers, and investigate and mediate complaints.
Under Governor Hochul’s leadership, New York is leading the nation in requiring health insurers to cover behavioral health services and continues to develop tools to ensure these companies are following all applicable laws. The state now requires commercial insurers to reimburse covered outpatient mental health and substance use disorder services provided by in-network OMH- and OASAS-licensed facilities at no less than the Medicaid rate; and requires commercial and Medicaid health plans to use transparent, nonprofit clinical guidelines and cover all medically necessary treatments.
The 988 Suicide & Crisis Lifeline connects New Yorkers to trained crisis counselors 24/7, who can help anyone thinking about suicide, struggling with substance use, experiencing a mental health crisis, or any other kind of emotional distress. New Yorkers can call, text or chat 988 if they are worried about someone who may need crisis support.
New Yorkers struggling with an addiction, or whose loved ones are struggling, can find help and hope by calling the state’s toll-free, 24-hour, 7-day-a-week HOPEline at 1-877-8-HOPENY (1-877-846-7369) or by texting HOPENY (Short Code 467369).
Dear MRT Listserv Subscriber,
In January 2025, the New York State Department of Health (NYS DOH) launched the Social Care Network (SCN) program to expand access to health-related social need (HRSN) services among NYS Medicaid members. Nine regional SCNs are coordinating networks of community-based organizations, health care and behavioral health providers, and other partners to provide HRSN screenings, navigation, and enhanced HRSN services to qualifying NYS Medicaid members.
NYS DOH will be hosting a health care and behavioral health provider webinar titled, “Social Care Networks: Opportunities for Provider Participation and Impact,” on Monday, July 14, 2025, from 11 a.m. to noon (registration information below) and is seeking feedback from stakeholders, including NYS health care, behavioral health, and HRSN service providers, on their knowledge of or experience with the SCN program during its first six months of implementation.
We would value your feedback to help us understand how the SCN program can most effectively reach and meet the needs of NYS Medicaid members. NYS DOH will address and respond to your feedback via the webinars and use it to identify potential opportunities for program improvement and inform the development of additional program resources.
Please complete the Social Care Network (SCN) Program Survey, which takes five minutes to complete, to provide feedback and insights, no later than Thursday, July 10 at 11:59 p.m. ET.
Health Care and Behavioral Health Provider Webinar (“Social Care Networks: Opportunities for Provider Participation and Impact”)
The “Social Care Networks: Opportunities for Provider Participation and Impact” webinar will be hosted on July 14, 2025, from 11 a.m. to noon. Registration is required.
Who Should Attend?
This webinar is for health care and behavioral health providers and leaders involved in population health, social care, or care management from hospitals, health systems, primary care practices, behavioral health organizations, and community health centers, including federally qualified health centers.
What Information Will be Covered?
The webinar will include an overview of the SCN program and provide insight into key operational aspects for providers who may be interested in participating, such as onboarding and contracting with an SCN and ways to connect to the SCN Information Technology platform.