Southern Tier, NY– The New York State Senate Majority, in partnership with the New York State Assembly and Governor Kathy Hochul enacted the FY 2026-2027 State Budget, delivering targeted investments to health care providers and professionals throughout the state and strengthening mental, maternal, and reproductive health programs.

“Investing in the health of our communities is a fundamental need,” said Senator Lea Webb. “Too many families in our region face real challenges accessing health services, whether it’s mental health care, nutrition assistance, or preventive screenings. As we continue to grapple with federal cuts to healthcare, it is crucial that as a state that we prioritize and fund programs that will strengthen our healthcare systems, support healthcare workers, and ultimately work to create healthier communities across our state.”

This budget allocates a total of $750 million in new funding to hospitals, hospices, nursing homes, and the Quality Incentive Vital Access Provider Pool, from which funding is given to home care agencies that enhance workforce wages, benefits, and training. It also provides an additional $125 million, for a total of $175 million, for various Hospital Quality Incentive Pools in order to help defray costs for providers while promoting quality care. And it delivers $50 million in funding to support VNS Health.

The SFY 2026-27 Budget invests an additional $10 million in clinics, for a total of $40 million. Additional investments include $500 million in operating funding for financially distressed hospitals, a total of $5 million for SOMOS Innovation, and an additional $1.1 million for the Rural Health Care Access Development and Rural Health Network Development programs, all so providers can better administer quality care to patients across New York State, including residents of rural and underserved communities.

The enacted budget appropriates $8 million for the Daniel’s Law Pilot Program, which establishes non-police and peer-led crisis response teams to assist individuals experiencing mental health or substance use emergencies. Consistent with the Senate Majority’s commitment to ensure New York State remains a haven for those administering and accessing reproductive care services, this budget provides funding totaling $20 million for abortion medication care grants, $10 million total in capital grant funding for reproductive health facilities, $1 million for the Reproductive Freedom and Equity Grant program, and $1 million in grants for family planning services. Included in this budget is a $50 million allocation that restores the enhanced rates for the Medical Indemnity Fund, which defrays the costs of care for qualifying individuals who sustained birth-related neurological injuries due to medical malpractice. This budget also provides $10 million in funding for maternal health.

The SFY 2026-27 Budget enacts several prior authorization reforms. Insurers are now prohibited from conducting more than one utilization review per year in relation to individuals with chronic conditions, and the continuity of care period has been extended to 90 days for all conditions and must continue during pregnancy and for one year after pregnancy.

Finally, the enacted budget provides an additional $104 million, for a total of $279.6 million in funding, for a Targeted Inflationary Increase of 2.7% for certain “O” agency providers. It furthermore extends the Care Demonstration Program administered by the Office for People with Developmental Disabilities.

The New York State Senate Majority remains committed to supporting health professionals, providers, and patients by making strategic investments that will strengthen vital programs and services, improve patient outcomes, and expand access to quality health care.

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