President Trump’s massive federal budget bill is headed to his desk to be signed into law. The House of Representatives passed the bill Thursday afternoon.
The bill includes trillions of dollars in spending on tax cuts, immigration enforcement and national defense, as well as sweeping cuts to social safety net programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
Changes to SNAP work requirements may go into effect as soon as this year. New Medicaid eligibility, work requirements, and state federal funding policies do not kick in until at least 2026.
Local health care providers brace for Medicaid cuts
The Guthrie Clinic, one of the major health systems in the Southern Tier said in an email statement: “As a rural health system that serves a high percentage of Medicaid patients, we know firsthand how critical Medicaid is for our community. Now that the bill has passed in both chambers, we are carefully reviewing its provisions and working to fully understand the scope and scale of its impact.”
Additionally, Guthrie stated: “While the full picture is still coming together, one thing is clear: We will not waver in our commitment to providing high-quality care to every patient, regardless of their ability to pay.”
In fiscal year 2024, The Guthrie Clinic provided more than $132 million in charity care, including financial assistance, unreimbursed services and investments to promote healthier communities.
Guthrie is one of the top employers in the region with more than 11,000 employed across its six hospitals and 68 regional offices in 13 counties in Pennsylvania and New York.
Last year, The Guthrie Clinic had nearly 2 million patient visits across its health system.
“With the substantial number of Medicaid patients across the Southern Tier, and already strained healthcare infrastructure and support, additional Medicaid funding decreases put health system operations at risk,” said Centralus Chief Marketing Officer, Melissa Tourtellotte.
“Centralus Health is committed to providing access to a comprehensive range of care and services throughout our region. Federal funding decreases [to] New York State may impact how the state, in turn, supports health systems like ours. Centralus Health’s ability to maintain the current levels and access to the scope of services we currently provide will be largely contingent on how the bill is put into action.”
Centralus Health combined the Cayuga Health and Arnot Health systems earlier this year. It employs 6,500 health care professionals and caregivers and has more than a million patient visits per year.
There are 11 hospitals in New York's 23rd Congressional District (NY-23). Seven are safety net hospitals, including Arnot Ogden Hospital in Chemung County, Schuyler Hospital in Schuyler County and St. James Hospital in Steuben County.
A safety net hospital provides a majority of its care to low-income or uninsured patients and may also be a Critical Access Hospital or Sole Community Hospital.
The other hospitals are Cuba Memorial and Jones Memorial in Allegany County, Brooks Memorial in Chautauqua County and Olean General in Cattaraugus County.
Elected officials react to sweeping bill
Republican Congressman Nick Langworthy, who represents NY-23, called the bill “a generational win for the American people.”
“This bold, sweeping legislation rewrites the tax code to deliver the largest middle-class tax cut in history,” Langworthy said in a statement. “It eliminates taxes on tips and overtime pay, provides substantial relief for senior citizens, expands the Child Tax Credit to help families thrive, and lifts the arbitrary cap on the State and Local Tax (SALT) deduction that punished homeowners in places like New York.”
Langworthy’s district includes Chautauqua, Allegany, Cattaraugus, and Tioga counties, as well as parts of Erie, Schuyler, and Steuben counties.
According to the New York State Department of Health (NYSDOH), in NY-23, 34,672 individuals will become newly uninsured, and a $266 million fiscal loss is expected for the district due to Medicaid cuts. Nearly 14 percent of households in the district participate in the SNAP program as well, according to the U.S. Department of Agriculture.
Democratic Congressman Josh Riley did not respond to requests for comment in time for publication. But he criticized the bill in a fiery House floor speech Wednesday.
“This bill will kill good blue collar manufacturing jobs that we need to rebuild the economy in this country,” Riley said. “It closes rural hospitals, it defunds healthcare, all to give trillions of dollars in tax cuts to your cronies."
According to the New York State Department of Health, 37,453 individuals in New York’s 19th Congressional District will lose insurance coverage as a result of cuts to Medicaid. The NYSDOH predicts a nearly $300 million fiscal impact on the district. More than thirteen percent of households in the district rely on SNAP benefits.
Republican Congresswoman Claudia Tenney also praised the bill.
“This legislation protects our farmers and small businesses by preserving the small business pass-through deduction and 100% immediate capital expensing, which are tools that will empower investment and drive economic growth across NY-24,” Tenney said in a statement. “This bill will secure our borders by funding ICE and CBP, finishing the wall, and ending taxpayer-funded benefits like Medicaid for illegal immigrants.”
In a statement, Democratic Gov. Kathy Hochul said House Republicans were “gambling with their constituents’ lives to pay for billionaire tax breaks.” She specifically took aim at New York Congressional Republicans who represent New York districts.
“To the 48,000 New Yorkers set to lose their coverage in Rep. LaLota’s district, the 48,000 in Rep. Garbarino’s, the 52,000 in Rep. Malliotakis’, the 31,000 in Rep. Lawler’s, the 44,000 in Rep. Stefanik’s, the 35,000 in Rep. Langworthy’s, and the 31,000 in Rep. Tenney’s: your members of Congress may have given up on you, but I never will,” Hochul said.
Carl Heastie, Democratic Speaker of the Assembly, also criticized New York’s Republican representatives.
“They have sold out American families, gutting Medicaid, ripping away access to health insurance and health care,” Heastie wrote in a statement. “All so their billionaire donors can keep their tax cuts. This bill will be devastating for New Yorkers and people across the country.”
In a statement to WSKG, Democratic State Sen. Lea Webb, who represents New York’s 52nd Senate District, called the budget a “disaster for working families, small businesses, farmers, marginalized and vulnerable community members.”
“Shame on every member of the GOP who refused to stand up for the American people today, all so that billionaires can get a bigger tax cut. Our communities deserve dignity and equitable policies and resources from our government,” she wrote.
State Assemblymember Anna Kelles told WSKG she is worried about the economic impact of the cuts as well as the potential harm to New Yorkers using Medicaid and SNAP.
“This isn't only going to affect people who are recipients, but this is going to cause widespread job loss in programs that rely heavily on Medicaid and food assistance,” Kelles said.
