November 19, 2025
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WORKFORCE
FEDERAL RULEMAKING COULD IMPACT BORROWING CAPACITY FOR CURRENT AND FUTURE SOCIAL WORK STUDENTS CSWE: Education Department Definition Limits Access to Social Work Education On November 7, the U.S. Department of Education (ED) concluded negotiated rulemaking by the Reimagining and Improving Student Education (RISE) committee focused on restructuring student loans, phasing out Grad PLUS loans for graduate and professional students, establishing new loan limits, and simplifying repayment plans as established under the One Big Beautiful Bill Act (OBBBA). As part of this rulemaking, ED proposed and reached consensus on a definition of “professional student” that would impact borrowing capacity for current and future social work students.The Council on Social Work Education (CSWE) recognizes ED’s intent to create clear and consistent criteria for what constitutes a professional degree, but we are disheartened and concerned by the proposed definition and its potential impacts. Graduate students in critical healthcare fields could be significantly limited in accessing federal financing, posing potential impacts on social work education, and the supply of practitioners.Under ED’s initial framework, a professional student would be defined as a student in a professional degree program that requires “completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor’s degree,” has a 4-digit Classification of Instructional Programs (CIP) code, and includes a path to professional licensure. The proposed definition that emerged and reached consensus excluded social work programs and several other health-related professions critical to public health.CSWE joined with the Federation of Associations of Schools of Health Professions (FASHP) in urging ED to use CIP Code 51 (Health Professions and Related Programs) and related codes as a guide for determining professional degree eligibility. Not only are the professions represented as part of the CIP code critical to our nation’s health and wellbeing, but they also largely align with ED’s original framework. Using these CIP codes would help prevent unjustified distinctions (such as those based on program length) and those not reflective of the rigor or value of a given health profession.Excluding social work from professional degree eligibility, combined with the OBBBA’s proposed elimination of Graduate PLUS loans, could make it more difficult for students to pursue graduate education in critical service professions. Preliminary data suggest that 370,000 students could be affected by the new definition and more than $8 billion in federal loans will no longer be available for student access (roughly 22 percent of annual federal loan disbursements). Social workers provide the majority of mental and behavioral health services in the US and play a key role in providing critical support for children, the elderly, veterans, and other vulnerable populations across the country. According to data from the Bureau of Labor Statistics, demand for social workers is expected to continue growing over the next decade, even as many communities already face workforce shortages. Ensuring access to affordable graduate education is therefore essential to maintaining a strong and sustainable social work workforce.Since the passage of OBBBA, CSWE has remained committed to advocating on behalf of our membership by actively engaging with ED to share data, program information, and workforce evidence supporting the inclusion of social work as a professional degree. The organization has submitted formal comments to ED, delivered public remarks during ED’s listening sessions, and issued public statements to raise awareness of the issue. We have also actively communicated with our member institutions to gather input and intelligence on how the proposed changes would affect students and programs, and coordinated closely with partner organizations and coalitions representing health professions to present unified recommendations to ED. In addition, CSWE has met with congressional champions and committee staff to emphasize the importance of maintaining access to affordable graduate education in social work and related fields.The proposed regulations will be open for comment before being finalized. CSWE will continue to engage with members of Congress and partner organizations to advocate for adequate access to student financial assistance to support social work students and the communities they serve. |
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CALL TO ACTION
Broken Promise: Disability, Nonprofits, and the Struggle for Economic Justice
by James A. Lomastro
New proposed federal rule changes threaten to make it far harder for older and disabled Americans to qualify for benefits. Will nonprofits stand up to oppose it?
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OSFAB News
The state’s Opioid Settlement Fund Advisory Board has helped steer millions of dollars, but where is it going and who is on the receiving end? We explore those questions and recommendations on spending for the future with Toni Smith, state director in New York for the Drug Policy Alliance, which analyzed the first few years of settlement dollar spending.
Today (Wednesday) at 11:00 on WCNY here: https://linktr.ee/CapitolPressroom?mc_cid=6a65668e4b&mc_eid=a1a7abd080
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SFY 27 STATE BUDGET
Crain’s Health Pulse 11/19
New York won extra time to phase out a lucrative health plan tax that generates billions in federal dollars for hospitals and nursing homes, extending the much-needed revenue stream through March.
The U.S. Centers for Medicare and Medicaid Services released guidance Friday giving states until the end of the 2026 fiscal year to wind down so-called managed care organization taxes. The MCO taxes, as they’re often called, place a levy on certain Medicaid plans to reap a higher share of federal revenue. The guidance clarifies how long states have to eliminate such taxes under a provision in President Donald Trump’s sweeping budget legislation. That law, known as H.R. 1, banned states from imposing such taxes on Medicaid plans when it took effect in July.
The guidance marks a small win for New York, as some experts had projected that the state would lose the funding by January or sooner. The state initially projected that its tax, which started collecting revenue in July, would bring in $3.7 billion over two years. That total became uncertain once H.R. 1 went into effect. State officials now have a few additional months to phase out the tax.
It’s unclear how much additional federal revenue the state will reap from the extended timeline. The Division of Budget is still analyzing the updated guidance, said spokesman Tim Ruffinen.
New York received approval for its managed care organization tax under former President Joe Biden, modeling its plan after a similar tax in California. The state planned to use the new funding to increase Medicaid rates for hospitals and nursing homes, and offset its ballooning health care budget.
Those plans were thrust into limbo once the Trump administration took office and launched a crackdown on such taxes. The federal government has called managed care organization taxes exploitative, and the conservative think tank Paragon Institute equated them to legalized money laundering.
“States that took advantage of that loophole, inappropriately shifting the financing burden to the federal government—such as in California and New York—must unwind those practices,” CMS said in a press release Friday.
Under H.R. 1, the federal government gave the U.S. Health Secretary discretion on when to phase out the taxes, with a maximum timeline of three years. Some experts warned that the Trump administration would not give New York a break and end its tax immediately, but the new guidance gives the state until at least March.
The federal guidance states that current extension “is the minimum transition period that may be available; additional time, up to the statutory three fiscal year maximum, may be provided.”
The extension is a reprieve for the hospital industry, which is reliant on the extra federal dollars to support higher Medicaid payments and funds for safety-net hospitals. Under the new guidance, New York will not receive the full $3.7 billion it projected in budget documents, but it could get a larger fraction of that than previously estimated.
Michael Kinnucan, health policy director at the left-leaning think tank Fiscal Policy Institute, expected the tax revenue to be cut off in January. He said that under the new guidance, New York could receive an additional $413 million in federal revenue from January through March.
“[The federal government is] stepping back slightly,” Kinnucan said. “It’s still, obviously, a really short timeline.”
New York’s hospital lobby is asking the feds to relax their timeline even further.
“I need an extra year on the MCO tax,” said Ken Raske, president and CEO of the lobbying group Greater New York Hospital Association.
He said that he would plead the case in Washington to allow New York to collect tax revenue through the 2027 fiscal year, adding that the additional support is necessary to help hospitals prepare for other Medicaid cuts under H.R. 1.
“We cannot even begin to think about handling these cuts in a relatively short period of time,” Raske said. “I need time to turn the aircraft carrier around, if I can even get it turned around.”
nys
| Hochul says Washington uncertainty will dictate tax hike direction |
| New York officials have been discussing raising the corporate tax rate as Mamdani presses for his agenda. |
| By Nick Reisman | 11/17/2025 12:26 PM EST |
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ALBANY, New York — Washington uncertainty may change the Empire State’s tax calculus next year, Gov. Kathy Hochul said Monday. “When it comes to the taxes question, which I know is the burning question on all your minds, I have to keep an eye on what is happening in Washington,” she told reporters at a news conference.
The statement sets up a potential scenario for Hochul to support a tax hike in her budget plan, which is expected to be released early next year. POLITICO first reported last week that New York officials were having quiet, informal discussions about raising the state’s corporate tax rate as mayor-elect Zohran Mamdani seeks funding for his costly agenda, including universal child care. Hochul has steadfastly opposed raising the personal income tax rate. Mamdani wants to raise taxes on people making more than $1 million, a provision that needs approval from Albany. The Democratic governor, though, has not ruled out wringing revenue from other taxes, like the state corporate levy — another Mamdani campaign pledge. Hochul’s budget office has touted higher-than-expected tax revenue in the state’s coffers. But such planning can be taken only so far, she said.“So I can stand here today and say we can do quite a few things without any source of additional revenue based on the revenue coming in,” Hochul said. “But I don’t know what Washington is going to do. Are they going to jam us up for another $3 billion in Medicaid costs? This is the uncertainty that makes it challenging to do what we’re doing.”Business leaders are queasy about the prospect of raising the corporate tax rate — a move that would likely impact large companies. New York City firms also pay a city business tax and an MTA surcharge.Hochul on Monday kept her comments broad and did not identify which ways of raising revenue were under consideration — if any.“I’m going to be — not intentionally vague, but I’m going to be vague, because we don’t have all of the information,” she said. |
$6M to help fund behavioral health crisis response teams across NY State
By Adam Penale, State of Politics
The New York State Office of Mental Health on Monday announced that $6 million will be made available for communities to create health-led behavioral health crisis response teams. This comes following recommendations from the Daniel’s Law Task Force, which was established following the 2020 death of Daniel Prude while in Rochester police custody during a mental health incident.