Historic $34.2 Billion Medicaid Investment Will Support Care for 7 Million New Yorkers

Continue New York’s Leadership on Reproductive Freedom by Supporting Providers, Codifying EMTALA Into State Law

$1 Billion in Capital and $300 Million To Expand the Safety Net Transformation Program

Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will support New York’s health care system, including record investments in Medicaid and new policies and investments that protect pregnant women, older New Yorkers, and access to care for low-income New Yorkers across the state.

“All New Yorkers deserve access to affordable, high-quality care.” Governor Hochul said. “This year’s budget continues our record investments in public health and reproductive freedom, because every New Yorker should have access to care when they need it.”

Significant Investments in Medicaid and the Safety Net Transformation Program

The FY26 Budget provides record funding to keep New Yorkers healthy. A historic $34.2 billion Medicaid investment provides for 7 million New Yorkers who rely on Medicaid services and maintains the State’s commitment to supporting the health care safety net and transforming the health care delivery system, while simultaneously making bold investments to expand access to services.

The FY 26 Budget includes $1 billion in capital and $300 million in operating funds to expand the Safety Net Transformation Program. This program provides capital and operating support, and authorizes regulatory flexibilities to support the transformation of safety net hospitals to improve financial sustainability and expand access to high quality care.

The FY 26 Executive Budget invests almost $1 billion to expand access more broadly to high quality care in Medicaid, including — in addition to expanding the Safety Net Transformation Program - increasing reimbursement rates for:

• Hospitals
• Nursing Homes
• Assisted Living Programs
• Physician services
• Federally Qualified Health Centers and Article 28 Diagnostic and Treatment Centers

It will also further incentivize higher quality care by increasing the Mainstream Managed Care Quality Pool and investing in value-based providers.

The Budget also includes $211 million for the Medical Indemnity Fund (MIF) to allow the program to remain open to new enrollees.

Prioritizing Patient Safety and Access to Reproductive Care

The FY26 Budget codifies the federal Emergency Medical Treatment and Labor Act (EMTALA) into state law, ensuring that hospitals in New York provide stabilizing care for patients with emergency medical conditions regardless of their ability to pay. This new state law specifies that abortion is protected emergency care when necessary to protect the life and safety of a pregnant individual, ensuring access to emergency abortion care regardless of any changes to EMTALA at the federal level.

In addition, the FY26 Budget includes $20 million to provide a new flexible funding stream to allow providers to cover the full costs of medication abortion care and other abortion services. The budget also includes $4 million to support abortion training programs and $5 million to modernize facilities and help protect providers from violence or harassment.

The FY26 Budget includes legislation requiring all hospitals provide access to trained medical forensic examiners for sexual assault survivors. Access to these trained medical professionals is essential to support survivors through an emotionally fraught process and collect the evidence necessary to bring perpetrators of sexual assault to swift justice.

Investing in the Well-Being of All New Yorkers

The FY26 Budget invests $45 million through the State Office for the Aging for programs and services provided to older New Yorkers across the State. This investment is the largest in community-based aging services in New York State history.

The FY26 Budget includes $23 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP) and $5 million for the Nourish NY Program, which maintains the previous year’s funding levels.

Investing in Hospitals

The Budget provides $900 million for modernization and revitalization of SUNY hospitals. This includes $450 million each for Upstate Medical University and Downstate Medical University to help secure the hospitals’ futures and expand access to health care in our communities.

The FY26 Budget includes $50 million in capital funding to support the enhancement, modernization and financial stabilization of the Nassau University Medical Center.

This year’s budget also includes $25 million in capital projects funding over the next 5 years to support the modernization and enhancement of DOH’s 4 veterans’ homes, as well as the Helen Hayes Hospital.

The Budget includes an additional $500 million in operating support for financially distressed hospitals across the state.