NY Democrats and Republicans react to Federal spending bill

ALBANY, N.Y. (NEWS10)---- Assembly Democrats met virtually for about three hours on Friday to talk about the financial impact that could be felt here in New York, now that the federal bill has been signed into law. 

"There is some significant challenges for the state," said Assemblyman John McDonald. "We are looking at three quarters of a billion dollar deficit just in the first quarter of next year. That’s January through March 31st of 2026."

According to the New York State Department of Budget, the state was already facing a $7.5 billion dollar budget gap. They expect that number to grow by about $3 billion.  

"We got our work cut out for us, that’s for darn sure," said McDonald. "You know, it’s unfortunate. Listen, there are some parts of H.R.1 that people are going to enjoy, if they’re eligible. The challenge is going to be particularly in health care."

He said New York could see a reduction of services and the closure of health care facilities in underserved areas. It’s also estimated by the New York State Department of Health that up to 1.5 million New Yorkers could lose their health care coverage. 

As of now, McDonald doesn’t think lawmakers will return for a special session.

In a statement, Senate Minority Leader Rob Ortt said in part, “Democrats in Albany recklessly enacted a bloated $254 billion budget, so the fact they are now fearmongering over a $750 million Medicaid gap (a mere .3 percent of the overall budget) is laughable….“ We don’t need a special session – the budget gave the Governor the authority to act unilaterally to make necessary adjustments.”

When asked about H.R.1, Republican Assemblyman Chris Tague sent a statement highlighting aspects of the bill saying in-part, “We will have the largest middle-class tax cut in history, no tax on tips and overtime, record investment in border security, and so much more.“