New YorkA 113652025-2026 Regular SessionHouseWALLET

Provides for emergency appropriation for the period April 1, 2026 through May 18, 2026

Sponsored By: J. Gary Pretlow (Democratic)

Signed by Governor

WAYS AND MEANSRULES

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Bill Overview

Analyzed Economic Effects

30 provisions identified: 27 benefits, 2 costs, 1 mixed.

Essential Plan health coverage stays funded

Beginning April 1, 2026, the law provides $1.15 billion for New York’s Essential Plan under its federal innovation waiver. Funds can move among Health Department appropriations or to Health Research Incorporated. The money supports existing coverage; this provision does not set new eligibility rules, premiums, or individual benefit amounts.

Medicaid long-term care payments stay funded

For fiscal year 2026–27, Medicaid nursing-home services receive $249.795 million, plus $676.44 million in federal funding. Long-term care outside nursing homes receives $1.189902 billion, plus $1.929654 billion in federal funding. The money supports covered care and provider payments. These allocations do not set individual benefit amounts or guarantee coverage for a particular person.

Medicaid managed-care services keep their funding

For fiscal year 2026–27, the law provides $1.08997 billion for Medicaid managed-care services. It also provides $2.354808 billion in federal funding for managed care and specified regional planning. Funding includes planning by the Finger Lakes Health Systems Agency. These allocations do not set individual payments or guarantee a particular service.

Temporary funding keeps Medicaid payments flowing

Beginning April 1, 2026, the law provides $12.369631 billion for Medicaid payments, administration, and authorized child-care agency medical rates. Separate funding includes $1.07883 billion for care outside institutions and other costs, including unpaid bills. Another $144.228 million can cover related costs and school health-service claims submitted by counties or public school districts. Health-home services and grants receive $26.39 million. These funds support existing services under temporary budget authority through May 18, 2026; they do not set individual benefit amounts.

State workers’ pay and benefits stay funded

The law funds judiciary payrolls scheduled from April 1 through May 18, 2026, with $269 million, including certain earlier liabilities. It also provides $115.75 million for judiciary benefit costs incurred during that period, including health insurance, retirement, and workers’ compensation. Beginning April 1, state employee fringe-benefit funding rises from $821.3245 million to $1.2957725 billion. That total includes $982.761 million for health insurance and $13.524 million for dental insurance. These amounts fund payroll and benefit costs; they do not set individual salaries or benefit amounts.

State workers’ paychecks stay funded temporarily

The law provides $2.053518041 billion for state payrolls scheduled April 1 through May 18, 2026. Covered workers include executive-branch staff, legislative employees, and participants in state-operated special employment programs. The funding also covers specified payroll amounts owed from before April 1. It supports existing wages rather than setting new pay rates.

Medicaid spending cap can trigger cuts

Subject to federal approval, specified state-funded Medicaid spending is capped at $36.0992 billion from April 1, 2026, through March 31, 2027. Certain state-facility payments and payments outside the Department of Health budget are excluded. The Budget Director can adjust the cap for listed factors, including federal funding, minimum wages, and disaster costs. When projected spending exceeds the applicable cap, the Medicaid director must develop savings changes that can alter or suspend payments or benefits. Changes require public posting, 30-day legislative notice, and quarterly reports, with faster action allowed during public health emergencies. Local districts also need prior state health and budget approval before using this funding for cost-affecting rate, fee, or procedure changes.

Medicaid drug funding comes with limits

For fiscal year 2026–27, the law provides $503.482 million for Medicaid pharmacy services and $709.314 million in federal pharmacy funds. These funds generally cannot pay for drugs that are not explicitly authorized by enacted law, rule, or regulation. The Budget Director can approve an exception. This limits program spending on affected drugs rather than creating a new household fee.

Self-directed disability care covers more costs

Beginning April 1, 2026, the Office for People With Developmental Disabilities can fund more listed self-directed care expenses. These include services that keep care going, family-reimbursed respite, non-staff expenses, and direct housing subsidies. The person must be enrolled in the agency’s self-direction program. Each cost must appear in a self-direction budget approved by the agency; the law sets no individual payment amount.

Children’s health coverage and enrollment funded

Beginning April 1, 2026, the law provides $212.95 million for children’s health insurance services. Some funds can go through the Office of Temporary and Disability Assistance to cover local Medicaid enrollment costs. This applies to newly enrolled children whose household income is 100% to 133% of the federal poverty level. The provision funds services and administration; it does not change that income range or set individual benefits.

Funding supports state-run and behavioral care

The law provides $673.078 million for Medicaid medical services at specified state-run facilities in fiscal year 2026–27. It also allows funding changes for services addressing needs caused by reductions in Medicaid inpatient behavioral-health care. The relevant commissioner must develop those changes with the Health Commissioner, and the Budget Director must approve them. No separate amount is stated for these service changes.

Help keeps hospitals and primary care available

Safety-net general hospitals in severe financial distress can receive awards to keep operating while developing long-term plans. The Health Commissioner sets hospital eligibility criteria. Within available funding, the Health Department must also make grants supporting accessible, high-quality primary care. Those grants support care-system business planning, technical help, and electronic health records. No award totals or direct household payments are specified.

Medicaid hospital and clinic care funded

For fiscal year 2026–27, Medicaid inpatient hospital care receives $169.666 million, plus $455.31 million in federal funding. Hospital outpatient and emergency-room care receives $50.743 million, plus $81.144 million in federal funding. Clinic care receives $99.386 million, plus $131.382 million in federal funding. These funds support program payments, not new benefit amounts or coverage guarantees for individual patients.

Medicaid rides and dental care funded

For fiscal year 2026–27, separate Medicaid allocations provide $72.324 million and $95.292 million for transportation services. Dental services receive separate allocations of $553,000 and $11.016 million. These funds support covered services and their providers. They do not guarantee a ride, dental treatment, or payment to any one person.

Medicaid funds can support affordable housing

The law allows up to $576.924 million, plus available federal matching funds, to support affordable-housing-related services and expenses. Funds can move to specified state agencies and housing entities. The Health Commissioner must submit an allocation adjustment, and the Budget Director must approve the transfer. Spending must consider where grants are located. This authority does not create an individual housing payment or entitlement.

More funding for unemployed workers’ benefits

For the fiscal year beginning April 1, 2026, unemployment benefit funding rises from $1.455 billion to $1.47 billion. The $15 million increase supports benefits authorized under state law and the specified federal unemployment programs. The law does not change individual benefit formulas or set a new payment amount.

Funding pays claims for state-caused harm

Beginning April 1, 2026, the law provides $178,000 for qualifying property damage, injury, or wrongful-death claims. Covered claims concern harm caused by state officers, employees, or authorized people providing state service. The funding also covers the specified cases involving state-assigned vehicles. No fixed payment is set for each claimant.

Prescription help for older New Yorkers funded

Beginning April 1, 2026, the law provides $1.8 million for New York’s elderly prescription assistance program. Funds cover program costs, including payments to participating pharmacies for assistance already owed. This provision does not set individual eligibility rules or benefit amounts.

Albany receives funding for state-owned land

Beginning April 1, 2026, the law provides $7.72 million to Albany in place of taxes on certain state-owned land. The state can make the payment before October 1, 2026. The money goes to the city, not directly to residents.

Courts and local court payments funded

The law provides $36 million for New York court operating costs incurred April 1 through May 18, 2026. It also provides $22 million for court-system payments to localities for liabilities incurred during that period. These allocations fund public operations, not direct household payments.

More capital funding for New York transit

Beginning April 1, 2026, the Metropolitan Transportation Authority’s central business district tolling capital lockbox receives $26.276 million. That is double the prior $13.138 million appropriation. The money must be deposited in the legally established capital lockbox. This provision does not specify projects or change transit fares, tolls, or service.

More funding for veterans’ financial supports

Beginning April 1, 2026, funding for annuities to blind veterans and eligible surviving spouses doubles from $385,000 to $770,000. This doubles total program funding, not each recipient’s payment. Funding for homeless veterans’ housing services also rises from $264,000 to $282,000. These changes do not change eligibility or set individual annuity or housing payments.

State operations and capital projects funded

The law provides $66 million for ordinary state operating costs incurred April 1 through May 18, 2026. It also provides up to $10 million for capital costs under contracts or grants approved before April 1, 2026. Up to $20 million covers capital costs under contracts or grants approved after April 1, 2026. Capital costs must arise April 1 through May 18, 2026. All these expenses must serve purposes authorized in the 2025–26 state fiscal year.

New York transit receives finance support

Beginning April 1, 2026, the law provides $48.85 million to the Metropolitan Transportation Authority from the Mobility Tax Trust Account. The money goes into the authority’s finance fund. The Transportation Commissioner and Budget Director set when funds become available and the conditions for release. The law does not specify changes to fares or service.

Drug obligations funded for dual-eligible patients

The law allows state funds to pay federal Medicare drug-cost obligations for people covered by both Medicare and Medicaid. Payments go to the Centers for Medicare & Medicaid Services. No payment amount is specified, and this provision does not change who qualifies for coverage.

Funding pays resolved Medicaid rate disputes

The law allows appropriated funds to pay settlements or judgments resolving Medicaid rate appeals or lawsuits. The state Health Department must be a party to the dispute. No recipients or payment amounts are specified.

Medicaid funding helps cover wage increases

Beginning April 1, 2026, Medicaid funds support eligible direct salary and related benefit costs from minimum-wage increases. The wage increase must take effect during the appropriation period. The Health Commissioner can require recipients to certify fund use and provide reports. No separate funding amount or direct payment to workers is established.

More funding for community health services

Beginning April 1, 2026, community health program funding rises from $57.142 million to $60.352 million. The total includes $50.29 million for federal food and nutrition services and $10.062 million for the Indian health program. Indian health services must follow a plan prepared by the Health Commissioner and approved by the Budget Director. The funding does not itself change individual eligibility or benefit amounts.

More funding for developmental disability services

Beginning April 1, 2026, residential-service funding rises from $42.988 million to $45.919 million; day-program funding rises from $10.56 million to $11.28 million. Family-support funding rises from $11.88 million to $12.69 million, while training and employment funding rises from $6.864 million to $7.332 million. Up to $108,100 can go through the state vocational rehabilitation program to FEDCAP’s LongTerm Sheltered Employment program, up from $101,200. Funding for hepatitis B, care at home waiver services, epilepsy services, Special Olympics New York, and voluntary fingerprinting rises from $1.76 million to $1.88 million. These increases support services and providers without changing eligibility or setting individual payments.

Medicaid behavior therapy faces funding limits

Federal Medicaid managed-care funds can pay for applied behavior analysis only with a recommendation from a qualifying practitioner. That practitioner must be authorized under New York Education Law. The Health Commissioner must also designate the practitioner as an applied behavior analysis center-of-excellence provider. The law does not specify an individual cost increase or a separate funding amount for this therapy.

Sponsors & Cosponsors

Sponsor

  • J. Gary Pretlow

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 192 • No: 3

Senate vote • 5/14/2026

FLOOR Vote

Yes: 56 • No: 2

House vote • 5/14/2026

Assembly floor vote

Yes: 136 • No: 1

Actions Timeline

  1. SIGNED CHAP.113

    5/14/2026House
  2. DELIVERED TO GOVERNOR

    5/14/2026House
  3. RETURNED TO ASSEMBLY

    5/14/2026Senate
  4. PASSED SENATE

    5/14/2026Senate
  5. 3RD READING CAL.1121

    5/14/2026Senate
  6. SUBSTITUTED FOR S10324

    5/14/2026Senate
  7. REFERRED TO RULES

    5/14/2026Senate
  8. DELIVERED TO SENATE

    5/14/2026House
  9. PASSED ASSEMBLY

    5/14/2026House
  10. MESSAGE OF NECESSITY - 3 DAY MESSAGE

    5/14/2026House
  11. MESSAGE OF NECESSITY - APPROPRIATION

    5/14/2026House
  12. ORDERED TO THIRD READING RULES CAL.110

    5/14/2026House
  13. RULES REPORT CAL.110

    5/14/2026House
  14. REPORTED

    5/14/2026House
  15. REPORTED REFERRED TO RULES

    5/14/2026House
  16. REFERRED TO WAYS AND MEANS

    5/14/2026House

Bill Text

  • Original

    5/14/2026

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