Governor Kathy Hochul gathered her cabinet in Albany on July 17 to address what she called the “devastating impacts” of President Trump’s so-called “Big Ugly Bill,” warning that federal cuts passed by Republicans will strip health coverage and food assistance from millions of New Yorkers.
The governor directed state agencies to prepare response strategies aimed at reducing long-term damage to critical programs facing deep funding reductions, including Medicaid and SNAP.
“While Republicans in Washington callously slash funding for vital programs across the country, my administration is standing up for New Yorkers to soften the blow of these cuts amidst an affordability crisis,” Hochul said. “President Trump’s devastating ‘Big Ugly Bill’ will inflict harm across the state, leaving detrimental gaps in funding and families without the crucial benefits and coverage that they need.”
State estimates indicate more than 2 million residents could lose health insurance under the law, including roughly 730,000 legally present non-citizens who stand to lose coverage under the Essential Plan. Of those affected, 1.5 million are expected to become completely uninsured. Hospitals and providers are projected to face over $3 billion in uncompensated care annually, with statewide facility cuts totaling $8 billion per year.
The health care fallout could force hospitals to eliminate maternity and psychiatric services, downsize operations, or shut down altogether—affecting not only Medicaid patients but anyone needing hospital care, according to analysis from the Greater New York Hospital Association and the Healthcare Association of New York State.
On top of the health care cuts, the bill dramatically alters the federal-state partnership behind the Supplemental Nutrition Assistance Program. For the first time in its history, states would be required to cover 15 percent of SNAP benefit costs starting in 2027—costing New York an estimated $1.2 billion annually. Additionally, reductions in federal support for SNAP administration will force counties and New York City to absorb $168 million in extra expenses each year.
Hochul’s office said the bill’s punitive work requirements and eligibility restrictions will result in more than 300,000 households losing some or all of their SNAP benefits—translating to over $800 million in lost aid. About 41,000 legally present non-citizens, including refugees and asylees, will also be excluded from the program, adding another $108 million in losses.
Further cuts to the SNAP-Ed New York Program will eliminate $29 million in funding for community nutrition education, affecting organizations statewide, including Cornell Cooperative Extensions in ten counties.
The economic ripple effects could be severe. With $7.4 billion in annual SNAP benefits generating roughly $11.5 billion in economic activity across the state, slashing those funds could harm thousands of retailers and hundreds of local farmers’ markets.
“Lost SNAP sales and matching dollars will have a critical impact on local economies and the more than 18,000 retailers that accept SNAP in New York State,” the governor’s office warned.
All New York Republican congressional representatives voted in favor of the bill.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].