A sweeping federal tax and spending bill has reignited partisan battles in New York, with state Democrats denouncing provisions they say will gut critical health programs and Assembly Republicans praising the legislation as long-overdue fiscal reform.
The legislation, known as H.R. 1 or “The One Big Beautiful Bill,” includes major changes to Medicaid, tighter eligibility standards for public benefits, and significant new tax policies. While Gov. Kathy Hochul and other Democratic leaders have vowed to campaign against it, the Assembly Minority Conference says the bill forces long-avoided decisions on how government spends public money.
“New York’s Medicaid program has clearly drifted too far away from its original intent,” the statement from the Assembly Minority Office read. At $125.8 billion, with $44.7 billion coming from the state, the program is now the second most expensive in the country, according to the release. Critics of the current system argue that growth has been fueled by Albany’s own unchecked spending.
Despite the spring warning that fiscal action was imminent, the state’s one-party leadership passed a $254 billion budget that increased the state share of Medicaid by 16.3%, the Assembly Minority noted. “They saw a ‘Stop’ sign but accelerated through it,” the release stated.
Among H.R. 1’s more controversial elements are new work and eligibility requirements for Medicaid, which opponents say will reduce access for vulnerable populations. But Republican lawmakers argue the changes are common sense. “There is nothing unfair about setting basic expectations,” the statement read, emphasizing that taxpayer-funded programs should prioritize capable individuals who are willing to work.
Assembly Republicans also pushed back against what they called the governor’s “scare-tactic road show,” referencing Hochul’s recent press conference and upcoming statewide campaign against the bill. They accused her of omitting popular components of the law, including:
- $50 billion in funding for rural hospitals
- Elimination of taxes on tips and overtime
- Child Tax Credit increase from $1,200 to $2,200
- A boost in the SALT deduction cap from $10,000 to $40,000
- A new $6,000 senior tax deduction
- Permanent extension of the 2017 Tax Cuts and Jobs Act
The Minority Conference also cited current economic indicators—including inflation at 2.7%, falling gas prices, and job growth—as evidence that federal reforms are not causing the chaos some state leaders predicted.
“H.R. 1 has forced New York’s liberal tax-and-spend policymakers to look in the mirror,” the statement concluded. “The tough decisions and steps toward fiscal responsibility that have been put off for years are finally going to have to be made.”
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