New YorkS 102212025-2026 Regular SessionSenateWALLET

Provides for emergency appropriation for the period April 1, 2026 through May 11, 2026

Sponsored By: José M. Serrano (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

33 provisions identified: 28 benefits, 3 costs, 2 mixed.

Essential Plan health coverage receives funding

Beginning April 1, 2026, the law provides $1.15 billion for New York’s Essential Plan. The money supports services and expenses under the plan’s federal health law waiver. This appropriation does not change eligibility or set an individual enrollee’s premium or benefit amount.

Medicaid community and school services funded

The law provides $123.624 million and a separate $899.025 million in federal funds for noninstitutional and other Medicaid spending. Both can pay bills incurred before or after the appropriation. The $123.624 million appropriation can also pay counties and public schools for additional school supportive health service claims. The 2026–27 federal portion replaces matching prior appropriations and duplicate carried-over funding. These funds do not create direct household payments or change eligibility.

Medicaid long-term care receives billions

For April 1–May 11, 2026, the law provides $214.11 million for Medicaid nursing home care. It provides $1.019916 billion for long-term care outside nursing homes. Federal appropriations provide $563.7 million for nursing homes and $1.608045 billion for other long-term care. The 2026–27 portions replace matching prior appropriations and duplicate carried-over funding. These appropriations support care without changing eligibility or setting an individual benefit amount.

Medicaid managed and primary care funded

The law provides $934.26 million and a separate $1.96234 billion in federal funds for Medicaid managed care. This includes regional planning by the Finger Lakes Health Systems Agency. Within money set aside for grants, the health department must support primary care access, provider planning, and electronic health records. It also provides $22.62 million for health home services and grants during April 1–May 11, 2026. The 2026–27 health home funding replaces matching prior appropriations; the federal managed care funds are exempt from Financial Services Law article 6.

More funding for unemployed workers’ benefits

Beginning April 1, 2026, unemployment benefit funding rises by $45 million, from $1.215 billion to $1.26 billion. Payments must remain authorized by New York unemployment law or federally funded unemployment programs. Another $2 million reimburses the unemployment fund for payments to former state workers. These appropriations do not set higher individual benefits or change eligibility or benefit duration.

Medicaid drug funding has approval limits

The law provides $431.556 million for Medicaid pharmacy services during April 1–May 11, 2026. It separately provides $591.095 million in federal funds for pharmacy services. These funds cannot pay for drugs lacking explicit authorization in enacted law, rule, or regulation without budget director approval. The appropriations support drug services but limit which drugs this money can cover.

Medicaid funding comes with spending limits

Beginning April 1, 2026, the law provides $10.409681 billion in state-share Medicaid funding for care, administration, and authorized payments. State-funded Medicaid spending is capped at $36.0992 billion for April 1, 2026 through March 31, 2027. The budget director can adjust that cap for listed factors, including federal funding changes and minimum wage costs. To stay within it, the health department can change provider payments or modify or end benefits, following federal law. Material changes generally require public proposals, stakeholder input, and 30 days’ written notice to legislative budget chairs; limited exceptions apply. Quarterly public reports must explain spending and changes by service type and region. The law also creates a federal Medicaid account, requires maximizing federal support, and permits approved transfers among agencies.

Funding supports veteran payments and housing

Beginning April 1, 2026, New York provides $385,000 for annuities to blind veterans and eligible surviving spouses. Up to $15,000 of that funding can transfer to related state administration. Housing-related services for homeless veterans receive $246,000, up from $216,000. Neither appropriation sets a payment amount for each veteran.

Self-directed disability budgets fund more supports

Beginning April 1, 2026, New York’s developmental disability self-direction program can fund several types of support. These include services that maintain care, family-reimbursed respite, non-staff costs, and direct housing subsidies. The person must be enrolled in the self-direction program. Each funded cost must appear in a budget approved by the Office for People With Developmental Disabilities.

Funding keeps state employee benefits paid

The law provides $115.75 million for judiciary employee benefit costs incurred from April 1 through May 11, 2026. Covered costs include health, retirement, Social Security, dental, vision, unemployment insurance, and workers’ compensation. Beginning April 1, state funding for commuter mobility tax payments rises from $5.345 million to $7.005 million. That funding covers the state’s payments for employees in the metropolitan commuter transportation district. These appropriations do not change individual benefit formulas, employee pay, or the tax rate.

State and court paychecks keep flowing

The law provides $1.799296469 billion for state paychecks and $269 million for court employee paychecks. It covers payrolls scheduled from April 1 through May 11, 2026, including amounts owed before April 1. State funding also covers workers in state-run special employment, work-for-pay, and sheltered workshop programs. This keeps scheduled paychecks funded without changing pay rates.

State and court operating bills funded

The law provides $56 million for state operating bills and $36 million for court operating bills. It also provides $22 million for court aid owed to local governments. These funds cover costs incurred from April 1 through May 11, 2026. State operating spending must serve purposes approved during the 2025–26 budget year. Annual budget laws replace the temporary funding when enacted.

More operating funding for transit riders

Beginning April 1, 2026, dedicated transit trust funding rises from $61.36025 million to $199.53425 million. This includes $158.503 million for New York City transit, previously $41.065 million, and $27.996 million for commuter rail, previously $7.26 million. A separate operating aid program rises from $167.533375 million to $374.961075 million. Its added funding includes $142.4434 million for city transit and $64.9843 million for Long Island Rail Road and Metro-North. Payments require approved state financial plans, with additional approval certificates for specified Metropolitan Transportation Authority spending; no fare reduction is specified.

Children’s health coverage and enrollment funded

Beginning April 1, 2026, the law provides $212.95 million for the Children’s Health Insurance Program. Money can be transferred to the state assistance agency to repay local districts for specified Medicaid enrollment costs. Those costs concern newly enrolled children whose household income is between 100% and 133% of the federal poverty level. This administrative funding does not itself create new eligibility or a household payment.

Medicaid dental care and transportation funded

For April 1–May 11, 2026, the law provides $61.992 million for Medicaid transportation and $474,000 for dental services. Separate federal appropriations provide $79.41 million for transportation and $9.18 million for dental services. The 2026–27 portions replace matching prior appropriations and duplicate carried-over funding. These funds support services and providers without changing eligibility or setting personal benefit amounts.

Medicaid hospital and clinic care funded

For April 1–May 11, 2026, the law provides $145.428 million for Medicaid inpatient hospital care. It provides $43.494 million for outpatient and emergency care, plus $85.188 million for clinics. Federal appropriations provide $379.425 million, $67.62 million, and $109.485 million for those same service groups, respectively. The 2026–27 portions replace matching prior appropriations and duplicate carried-over funding, rather than adding to them. These appropriations fund services without changing patient eligibility or setting personal payments.

More funding for developmental disability services

Beginning April 1, 2026, community services funding for people with developmental disabilities rises from $760.608 million to $769.023 million. Residential services rise from $35.172 million to $40.057 million; day programs rise from $8.64 million to $9.84 million. Family supports rise from $9.72 million to $11.07 million; work and training services rise from $5.616 million to $6.396 million. Up to $94,300, previously $82,800, can transfer to vocational rehabilitation for FEDCAP’s Long-Term Sheltered Employment program. Funding for hepatitis B, care-at-home waivers, epilepsy, Special Olympics New York, and voluntary fingerprinting rises from $1.44 million to $1.64 million. These increases fund services rather than setting individual payments or changing eligibility.

State facilities and behavioral care funded

The law provides $576.924 million for Medicaid care at state mental health, developmental disability, and addiction service facilities. This covers April 1–May 11, 2026; the 2026–27 portion replaces matching prior appropriations and duplicate carried-over funding. Separately, money appropriated for behavioral services can address needs caused by reduced Medicaid inpatient mental health or substance use care. The responsible commissioner develops that funding plan with the health commissioner, and the budget director must approve it. No separate amount is stated for that plan.

Funding supports affordable housing services

The law provides $480.77 million, plus any available federal matching funds, for affordable housing-related services and expenses. Funds can transfer to specified state agencies and housing entities. Transfers require a health commissioner allocation adjustment and the budget director’s approval. Spending must consider where grants are located. This funding does not create an individual housing payment or guarantee housing assistance.

Medicaid behavioral therapy funding faces limits

The federal Medicaid managed-care appropriation has limits on funding applied behavior analysis therapy. Services must be recommended by a health or mental health practitioner authorized under New York’s professional licensing law. That practitioner must also be designated by the health commissioner as an applied behavior analysis center of excellence provider. This limits which services this appropriation can fund.

State Medicaid spending faces annual cap

For April 1, 2026–March 31, 2027, specified state Medicaid spending is capped at $36.0992 billion, subject to federal approval. Payments outside the Department of Health and medical services at state mental health, developmental disability, and addiction facilities are excluded. The budget director can adjust the cap for listed factors, including federal funding, minimum wages, and Essential Plan costs or savings. If projected spending exceeds the limit, the Medicaid director must prepare savings changes, which can reduce payments or change or end benefits. Changes must follow federal law and generally apply evenly, with exceptions for safety-net providers and new payment models. Material changes require public proposals, legislative and stakeholder input, and generally 30 days’ legislative notice; quarterly public spending reports are required.

Funding preserves discounted student transit fares

The law provides $6.31275 million for the Metropolitan Transportation Authority’s student fare program for the 2026–27 school year. Student eligibility and discounts stay at the rules used in 2019–20. Each semester’s funds become available only after New York City’s education department receives student fare passes. Spending requires the state budget director’s approval and filing of an approval certificate with the comptroller and legislative committee chairs.

Medicare and Medicaid drug obligations funded

The law authorizes payments to the federal health agency for drug costs of people eligible for both Medicare and Medicaid. Payments concern people participating in the Medicare drug benefit established by the 2003 federal Medicare law. The provision states no individual payment or household savings amount.

More funding for food assistance payments

Beginning April 1, 2026, federal food and nutrition services funding rises from $38.52 million to $43.87 million. The $5.35 million increase supports payments of financial assistance that has already accrued. The law does not set a higher payment for each household.

Seniors’ prescription assistance receives program funding

Beginning April 1, 2026, the law provides $1.8 million for New York’s Elderly Pharmaceutical Insurance Coverage Program. The money supports program costs and reimbursements to participating pharmacies, including assistance already owed. It does not state an individual benefit or savings amount.

Albany can receive land payment earlier

Beginning April 1, 2026, New York can pay Albany $7.72 million for certain state-owned land before October 1, 2026. This is a payment in place of property taxes. The law allows earlier payment but does not increase the amount.

Approved state construction bills get funding

The law funds eligible capital-project bills incurred from April 1 through May 11, 2026. Up to $10 million covers contracts and grants approved before April 1, 2026. Up to $20 million covers contracts and grants approved after April 1, 2026. Both must serve purposes approved during the 2025–26 budget year.

Local governments keep base grant funding

For the state budget year beginning April 1, 2026, the law provides $11.138869 million in base municipal grants. Each eligible local government gets the same base grant it received in the budget year beginning April 1, 2025. The money supports local budgets rather than direct household payments.

Distressed health providers can receive aid

Safety-net providers in severe financial distress can receive awards from the appropriated money. They must meet health commissioner criteria and work toward lasting solutions while maintaining vital services. The law also allows payments owed under settlements or judgments resolving rate appeals or lawsuits involving the health department. It sets no award or settlement payment amount and guarantees no provider an award.

Medicaid funding covers provider wage costs

Beginning April 1, 2026, Medicaid appropriations can cover eligible organizations’ direct salary costs and related employee benefits. Covered costs must be tied to a minimum-wage increase taking effect during the funding period. The federal funding provision directs funds toward these costs, and eligible organizations can receive advances. The commissioner can require written proof of spending and other reports. These provisions do not set a new minimum wage or pay workers directly.

New York Indian health services funded

Beginning April 1, 2026, the law provides $10.062 million for New York’s Indian health program. Assistance must follow a plan prepared by the health commissioner and approved by the budget director. The appropriation states no individual eligibility rules or payment amounts.

Workers’ compensation payments receive state funding

Beginning April 1, 2026, the law provides $55 million to the New York State Insurance Fund. The money pays workers’ compensation benefits and related costs, before or after those costs arise. It does not change who qualifies or individual benefit amounts.

State approval limits Medicaid spending changes

Local social services districts need advance state approval to use this funding for changes that may affect care costs. This covers changed rates, fees, fee schedules, and care procedures. Both the Department of Health and budget director must approve those changes. Medicaid expenses not explicitly authorized by law also need the budget director’s approval. These rules control government spending, not household payment duties.

Sponsors & Cosponsors

Sponsor

José M. Serrano
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 277 • No: 2

Senate vote • 5/7/2026

FLOOR Vote

Yes: 60 • No: 1

House vote • 5/7/2026

Assembly floor vote

Yes: 137 • No: 0

committee vote • 5/7/2026

Rules Committee Vote

Yes: 20 • No: 0