🔥 Trending New York Faces Major Healthcare Cuts: What You Need to Know

The H.R. 1 healthcare cuts refer to a federal budget reconciliation law, also known as the "One Big Beautiful Bill Act," signed into law on July 4, 2025 ⁵⁷. This legislation has led to significant reductions in federal funding for various public programs, including Medicaid, Medicare, SNAP, and eligibility for immigrants ⁵. For New York, a state with one of the largest Medicaid programs and a robust Essential Plan, these cuts have had a sweeping impact on its healthcare system ².

Impact on New York's Healthcare System

The H.R. 1 law specifically withdrew federal funding that allowed New York State to receive tax credits. These tax credits were crucial for covering the health plans of certain legally present immigrants ⁴. The state had previously utilized a 1332 Waiver, which demonstrated the effectiveness of innovative healthcare policy in providing coverage ³. However, congressional inaction to repeal or delay H.R. 1's changes to premium tax credit eligibility forced New York State to terminate this waiver ³.

As a direct consequence, New York's Department of Health announced on September 10, 2025, that the state would be taking proactive measures to preserve healthcare access following these federal funding cuts ¹. Despite these efforts, the impact has been substantial.

Who is Affected by the H.R. 1 Cuts?

The H.R. 1 healthcare cuts primarily affect hundreds of thousands of New Yorkers, particularly those who relied on the Essential Plan and other state-supported healthcare programs.

• Nearly 450,000 New Yorkers Losing Coverage: As of July 1, 2026, approximately 450,000 New Yorkers are losing their health coverage ⁴⁶. Some reports indicate this number is closer to nearly 500,000 moderate-income New Yorkers ⁸.
• Legally Present Immigrants: A significant portion of those affected are legally present immigrants whose health plans were previously subsidized by federal tax credits ⁴. The termination of the 1332 Waiver directly impacts this group ³.
• Moderate-Income Individuals: The cuts disproportionately affect moderate-income New Yorkers who qualified for the Essential Plan ⁸.
• Hospitals and Nursing Homes: While the state passed a $1.5 billion bailout to stabilize hospitals and nursing homes reeling from the federal cuts, the shortfall in the Essential Plan remains, indicating broader systemic challenges ⁶.

The H.R. 1 law eliminated or restricted funding streams that New York had used to sustain the Essential Plan, leading to these widespread coverage losses ⁷. The state has acknowledged that these cuts will leave hundreds of thousands of New Yorkers uninsured ³.