New York will drop 1.3 million low-income residents from its Essential Plan next year due to federal funding cuts, signaling a tough 2026 state budget ahead, according to Spectrum News.
The move shifts those residents—many of them immigrants—back to an older, less robust health program. Advocates warn that 450,000 more could lose coverage entirely, putting new strain on hospitals, schools, and state finances. Lawmakers expect deep budget fights as healthcare, education, and climate programs face looming shortfalls.
Comptroller Tom DiNapoli projects a $34.3 billion gap through 2029.
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