S T A T E O F N E W Y O R K
________________________________________________________________________
10924
I N A S S E M B L Y
April 9, 2026
___________
Introduced by M. of A. HEVESI, STECK -- read once and referred to the
Committee on Ways and Means
AN ACT establishing a targeted inflationary increase for designated
persons
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 1. Subject to available appropriations and approval of the
director of the budget, the commissioners of the department of health,
office of mental health, office for people with developmental disabili-
ties, office of addiction services and supports, office of temporary and
disability assistance, office of children and family services, and the
directors of the state office for the aging and the office of victim
services (hereinafter "the commissioners") shall establish a state
fiscal year 2026-2027 targeted inflationary increase, effective April 1,
2026, for projecting for the effects of inflation upon rates of
payments, contracts, or any other form of reimbursement for the programs
and services listed in subdivision four of this section. The targeted
inflationary increase established herein shall be applied to the appro-
priate portion of reimbursable costs or contract amounts. Where appro-
priate, transfers to the department of health (DOH) shall be made as
reimbursement for the state and/or local share of medical assistance.
2. Notwithstanding any inconsistent provision of law, subject to the
approval of the director of the budget and available appropriations
therefor, for the period of April 1, 2026 through March 31, 2027, the
commissioners shall provide funding to support a two and seven-tenths
percent (2.7%) targeted inflationary increase under this section for all
eligible programs and services as determined pursuant to subdivision
four of this section.
3. Notwithstanding any inconsistent provision of law, and as approved
by the director of the budget, the 2.7 percent targeted inflationary
increase established herein shall be inclusive of all other inflationary
increases, cost of living type increases, inflation factors, or trend
factors that are newly applied effective April 1, 2026. Except for the
2.7 percent targeted inflationary increase established herein, for the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08160-07-6
A. 10924 2
period commencing on April 1, 2026 and ending March 31, 2027 the commis-
sioners shall not apply any other new targeted inflationary increases or
cost of living adjustments for the purpose of establishing rates of
payments, contracts or any other form of reimbursement. The phrase "all
other inflationary increases, cost of living type increases, inflation
factors, or trend factors" as defined in this subdivision shall not
include payments made pursuant to the American Rescue Plan Act or other
federal relief programs related to the Coronavirus Disease 2019 (COVID-
19) pandemic public health emergency. This subdivision shall not prevent
the office of children and family services from applying additional
trend factors or staff retention factors to eligible programs and
services under paragraph (v) of subdivision four of this section.
4. Eligible programs and services. (i) Programs and services funded,
licensed, or certified by the office of mental health (OMH) eligible for
the targeted inflationary increase established herein, pending federal
approval where applicable, include: office of mental health licensed
outpatient programs, pursuant to parts 587 and 599 of title 14 CRR-NY of
the office of mental health regulations including clinic (mental health
outpatient treatment and rehabilitative services programs), continuing
day treatment, day treatment, intensive outpatient programs and partial
hospitalization; outreach; crisis residence; crisis stabilization,
crisis/respite beds; mobile crisis, part 590 comprehensive psychiatric
emergency program services; crisis intervention; home based crisis
intervention; family care; supported single room occupancy; supported
housing programs/services excluding rent; treatment congregate;
supported congregate; community residence - children and youth;
treatment/apartment; supported apartment; community residence single
room occupancy; on-site rehabilitation; employment programs; recreation;
respite care; transportation; psychosocial club; assertive community
treatment; case management; care coordination, including health home
plus services; local government unit administration; monitoring and
evaluation; children and youth vocational services; single point of
access; school-based mental health program; family support children and
youth; advocacy/support services; drop in centers; recovery centers;
transition management services; bridger; home and community based waiver
services; behavioral health waiver services authorized pursuant to the
section 1115 MRT waiver; self-help programs; consumer service dollars;
conference of local mental hygiene directors; multicultural initiative;
ongoing integrated supported employment services; supported education;
mentally ill/chemical abuse (MICA) network; personalized recovery
oriented services; children and family treatment and support services;
residential treatment facilities operating pursuant to part 584 of title
14-NYCRR; geriatric demonstration programs; community-based mental
health family treatment and support; coordinated children's service
initiative; homeless services; and promise zones.
(ii) Programs and services funded, licensed, or certified by the
office for people with developmental disabilities (OPWDD) eligible for
the targeted inflationary increase established herein, pending federal
approval where applicable, include: local/unified services; chapter 620
services; voluntary operated community residential services; article 16
clinics; day treatment services; family support services; 100% day
training; epilepsy services; traumatic brain injury services; hepatitis
B services; independent practitioner services for individuals with
intellectual and/or developmental disabilities; crisis services for
individuals with intellectual and/or developmental disabilities; family
care residential habilitation; supervised residential habilitation;
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supportive residential habilitation; respite; day habilitation; prevoca-
tional services; supported employment; community habilitation; interme-
diate care facility day and residential services; specialty hospital;
pathways to employment; intensive behavioral services; community transi-
tion services; family education and training; fiscal intermediary;
support broker; and personal resource accounts. The office for people
with developmental disabilities, in collaboration with the department of
education, shall also provide a comparable targeted inflationary
increase to the independent living centers program.
(iii) Programs and services funded, licensed, or certified by the
office of addiction services and supports (OASAS) eligible for the
targeted inflationary increase established herein, pending federal
approval where applicable, include: medically supervised withdrawal
services - residential; medically supervised withdrawal services -
outpatient; medically managed detoxification; inpatient rehabilitation
services; outpatient opioid treatment; residential opioid treatment;
residential opioid treatment to abstinence; problem gambling treatment;
medically supervised outpatient; outpatient rehabilitation; specialized
services substance abuse programs; home and community based waiver
services pursuant to subdivision 9 of section 366 of the social services
law; children and family treatment and support services; continuum of
care rental assistance case management; NY/NY III post-treatment hous-
ing; NY/NY III housing for persons at risk for homelessness; permanent
supported housing; youth clubhouse; recovery community centers; recovery
community organizing initiative; residential rehabilitation services for
youth (RRSY); intensive residential; community residential; supportive
living; residential services; job placement initiative; case management;
family support navigator; local government unit administration; peer
engagement; vocational rehabilitation; HIV early intervention services;
dual diagnosis coordinator; problem gambling resource centers; problem
gambling prevention; prevention resource centers; primary prevention
services; other prevention services; comprehensive outpatient clinic;
jail-based supports; regional addiction resource centers; and addiction
treatment centers.
(iv) Programs and services funded, licensed, or certified by the
office of temporary and disability assistance (OTDA) eligible for the
targeted inflationary increase established herein, pending federal
approval where applicable, include: the nutrition outreach and education
program (NOEP); New York state supportive housing program; solutions to
end homelessness program; disability advocacy programs; and state
supplemental nutrition assistance program outreach program.
(v) Programs and services funded, licensed, or certified by the office
of children and family services (OCFS) eligible for the targeted infla-
tionary increase established herein, pending federal approval where
applicable, include: programs for which the office of children and fami-
ly services establishes maximum state aid rates pursuant to section
398-a of the social services law and section 4003 of the education law;
emergency foster homes; foster family boarding homes and therapeutic
foster homes; supervised settings as defined by subdivision twenty-two
of section 371 of the social services law, as added by section 1-a of
part L of chapter 56 of the laws of 2021; adoptive parents receiving
adoption subsidy pursuant to section 453 of the social services law;
congregate and scattered supportive housing programs and supportive
services provided under the NY/NY III supportive housing agreement to
young adults leaving or having recently left foster care; child care
resource and referral agencies; healthy families New York; New York
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state learning and enrichment after-school program supports (LEAPS); New
York state commission for the blind; and residential and non-residential
domestic violence services and preventative services as defined by
section 409 of the social services law.
(vi) Programs and services funded, licensed, or certified by the state
office for the aging (SOFA) eligible for the targeted inflationary
increase established herein, pending federal approval where applicable,
include: community services for the elderly; expanded in-home services
for the elderly; the wellness in nutrition program; New York connects
program; long term ombudsman program; naturally occurring retirement
communities (NORCs); neighborhood naturally occurring retirement commu-
nities (NNORCs); and social adult day services program.
(vii) Programs and services funded, licensed, or certified by the
department of health eligible for the cost of living adjustment estab-
lished herein, pending federal approval where applicable, include:
health home care management agencies authorized under section 365-l of
the social services law; rape crisis programs; maternal, infant, and
early childhood home visiting (MIECHV) initiative; and Medicaid trans-
portation program.
(viii) Programs and services funded, licensed, or certified by the
office of victim services eligible for the cost of living adjustment
established herein, pending federal approval where applicable, include:
crime victim service programs as defined by section 631-a of the execu-
tive law.
5. All state-funded human services programs not listed in paragraphs
(i), (ii), (iii), (iv), (v), (vi), (vii), and (viii) of subdivision four
of this section shall be deemed eligible for the cost of living adjust-
ment established herein, pending federal approval where applicable, if
such program or service is provided to individuals or groups of individ-
uals, for the purpose of improving or enhancing such individuals' health
and/or welfare, by addressing social problems. The commissioners and
directors of the office of mental health, the office for people with
developmental disabilities, the office of addiction services and
supports, the office of temporary and disability assistance, the office
of children and family services, the state office for the aging, the
department of health, and the office of victim services shall publish a
list of such newly eligible programs and services each year on depart-
ment websites no later than March first and review the current list of
cost of living adjustment eligible programs every five years.
6. Each local government unit or direct contract provider receiving
funding for the targeted inflationary increase established herein shall
submit a written certification, in such form and at such time as the
commissioners shall prescribe, attesting how such funding will be or was
used to first promote the recruitment and retention of non-executive
direct support professionals, non-executive direct care staff, non-exe-
cutive clinical staff, non-executive administrative staff, or respond to
other critical non-personal service costs prior to supporting any salary
increases or other compensation for executive level job titles.
7. Notwithstanding any inconsistent provision of law to the contrary,
agency commissioners shall be authorized to recoup funding from a local
governmental unit or direct contract provider for the targeted infla-
tionary increase established herein determined to have been used in a
manner inconsistent with the appropriation, or any other provision of
this section. Such agency commissioners shall be authorized to employ
any legal mechanism to recoup such funds, including an offset of other
A. 10924 5
funds that are owed to such local governmental unit or direct contract
provider.
ยง 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2026.