Summer Update

Alyssa Lovelace • July 29, 2026

Post-2026 New York State Legislative Session Update & Next Steps

Overview

With summer in full swing and lawmakers on the campaign trail, the FAIR Access Initiative team thought it would be the right time to provide members with a glimpse of what's been going on since lawmakers adjourned and what to expect in the coming months.


The Legislative Session concluded amid continued fiscal pressures on the Medicaid program, workforce shortages, and growing concern over the sustainability of home- and community-based services. While lawmakers advanced several healthcare priorities through the enacted State Budget, which was 57 days late, the regular Legislative Session was characterized more by oversight and implementation discussions than by sweeping reforms affecting home care providers.


For Certified Home Health Agencies (CHHAs), Licensed Home Care Services Agencies (LHCSAs), hospice providers, and Managed Long Term Care (MLTC) stakeholders, the focus now shifts toward regulatory implementation, Department of Health guidance, federal Medicaid developments, and preparation for the 2027 Legislative Session.


Medicaid Fiscal Environment

In mid-July, Comptroller DiNapoli issued the Report on the Enacted Budget and Financial Plan for State Fiscal Year 2027. According to the Report, New York's SFY 2027 Enacted Budget increases All Funds spending to $277.0 billion, a $18.1 billion (7.0%) increase over SFY 2026, reflecting the state's response to rising economic and fiscal pressures.


The budget prioritized:

  • Increased funding for Medicaid and School Aid
  • Expanded access to child care
  • $1 billion in tax rebates to help residents offset high utility costs
  • Additional financial assistance for New York City and other local governments experiencing fiscal stress


At the same time, the budget underscores growing fiscal uncertainty driven by reduced federal support. Federal policy changes have already affected healthcare, with hundreds of thousands of New Yorkers losing Essential Plan coverage and continued uncertainty surrounding the program's long-term future. Reductions in federal funding for nutrition assistance will also require the State to increase its own spending.


The Division of the Budget projects cumulative out-year budget gaps of $31.7 billion, a significant increase since January. To balance the SFY 2027 budget, the State expects to draw down $1.3 billion from the General Fund balance, while leaving overall reserve levels unchanged. These widening structural deficits and limited reserves present long-term challenges that could affect the State's ability to sustain investments in healthcare, education, and other essential services in future budgets. 


New York continues to face significant long-term Medicaid financing challenges while preparing for the implementation of recent federal Medicaid policy changes. State leaders have acknowledged that federal actions could place additional pressure on future Medicaid spending, reimbursement methodologies, and eligibility policies. As a result, providers should anticipate heightened scrutiny of program expenditures and continued discussions regarding long-term sustainability.


Home Care Workforce Remains the Primary Policy Challenge

Despite broad agreement among policymakers that workforce shortages remain one of the greatest threats to access to care, the Legislature did not enact comprehensive workforce reforms during the legislative session.


Issues expected to remain priorities include:

  • Medicaid reimbursement that reflects increasing labor costs
  • Recruitment and retention of home health aides and personal care aides
  • Administrative burden reduction
  • Workforce pipeline development
  • Modernization of training and credentialing processes


The industry continues to emphasize that reimbursement must better align with state-mandated wage increases and other operating costs to ensure provider sustainability.


Continued Oversight of Long-Term Care Programs

The Legislature devoted considerable attention to oversight of Medicaid long term care programs, including implementation of recent reforms affecting consumer directed services, managed care, and Department of Health operations.


While relatively few major statutory changes affecting traditional home care agencies were enacted during session, legislative committees signaled that oversight of long-term care financing, access to services, and program administration will remain active throughout the interim.


Looking Ahead

The months between legislative sessions provide an important opportunity to educate policymakers before formal budget negotiations begin this summer and when lawmakers return in January.


FAIR Access Initiative's summer and fall advocacy priorities will include:


  • Medicaid Reimbursement: Advocate for reimbursement methodologies that accurately reflect wage mandates, inflation, and the true cost of delivering care.


  • Workforce Investment: Support initiatives that strengthen recruitment, retention, career advancement, training capacity, and technology-enabled workforce solutions.


  • Reducing Administrative Burden: Promote policies that simplify prior authorization, credentialing, documentation, and regulatory reporting requirements.


  • Access to Care: Highlight the essential role of home care in preventing avoidable hospitalizations, reducing emergency department utilization, and supporting aging in place.


  • Regulatory Modernization: Engage with the Department of Health on implementation issues and identify opportunities to streamline regulations while maintaining quality standards.


Preparing for the 2027 Legislative Session

Between now and January, FAIR will:

  • Schedule meetings with State Senators and Assembly Members in their districts.
  • Invite legislators to visit home care operations and meet frontline caregivers.
  • Share local workforce and patient access data.
  • Document reimbursement challenges and their impact on service availability.
  • Monitor Department of Health regulatory actions and Medicaid policy developments.


Federal Considerations

Federal Medicaid policy changes enacted over the past year are expected to influence New York's Medicaid program and could significantly affect future state budget negotiations. State policymakers will likely evaluate program financing, reimbursement strategies, licensure, and long term care delivery throughout the coming year as implementation continues. Providers should closely monitor both federal guidance and state responses as these policies evolve.


FAIR Access Initiative Reacts to DOH's Decision to Cease the Alternative Competency Demonstration

In response to the New York State Department of Health's (DOH) July 16 decision to reverse the Alternative Competency Demonstration provision for Personal Care Aide (PCA) certification due to an uptick in utilization, FAIR Access Initiative CEO Sasha Guillaume spoke to Politico Pro's Maya Kaufman to share the home come perspective.


Guillaume stated that eliminating the option to waive training requirements for experienced PCAs is a "collective punishment," and that "DOH could have handled the misuse of the waiver options through better oversight, rather than enacting a blanket ban."


Per the DOH directive, all personal care aides must now complete a state-approved 40-hour training course to receive their certification regardless of prior experience. In the event agencies hosted an Alternative Competency Demonstration class at the time of the July 16 Dear Administrator Letter, the class should have ceased or been changed to a Personal Care Aide basic training course.


FAIR Access Initiative has requested a meeting with DOH to discuss the decision and offer further solutions.


DOH Requests 5-Year MRT Demonstration Extension, Will Host Public Hearings

On July 8, the New York State Department of Health (DOH) announced it is requesting a five-year extension of the existing Section 1115(a) Medicaid Redesign Team (MRT) demonstration, which is set to expire on March 31, 2027.

 

As part of this process, DOH will conduct one in-person and one virtual public hearing, to provide an overview of the State’s Section 1115(a) demonstration extension request and allow members of the public to provide comments. Additionally, the second of these hearings, indicated below, will serve as the Annual 1115 Public Forum.

 

This notice further serves to open the public comment period, which will close on August 21, 2026, during which the public will be afforded the opportunity to provide written comments on this extension request.

 

Any updates related to the public hearings will be sent via the MRT Listserv. The  MRT demonstration extension request can be found here.

 

The two public hearings will be held as follows:


First Public Hearing

Location: Empire State Plaza, Concourse, Meeting Room 2, Albany, NY 12242

This meeting will be webcast live. Details will be shared via the MRT Listserv.

Friday, July 31, 2026, 1-4pm.

Pre-registration is not required. Individuals who wish to provide comment can email 1115waivers@health.ny.gov to be added to the speaker list or register upon arrival at the public hearing.

Individuals will speak in order of registration. We kindly request that all comments be limited to five minutes per presenter to ensure that all public comments may be heard.

 

Second Public Hearing & Annual 1115 Public Forum

Location: Virtual via WebEx  

Tuesday, August 11, 2026, 1-4pm

Pre-registration is required for anyone wishing to provide oral comment using this link

Individuals who wish to provide comment will need to register with an “SP” in front of their name (ex: SP Jane Doe) and must email 1115waivers@health.ny.gov no later than Monday, August 10, 2026 at 4pm to confirm registration.


Click here to learn more about the Waiver request and DOH's corresponding goals.


FAIR Access Initiative to Attend Senator Cleare's Senior Day

FAIR Access Initiative has been invited to attended Senate Aging Committee Chair Cordell Cleare's 5th Annual Senior Day as a community Partner.


The event will take place Wednesday, August 19 from 12:00 PM to 6:00 PM at the Harlem State Office Building Plaza.


This highly anticipated annual event is dedicated to celebrating, uplifting, and serving the older adults of the Senator's district and surrounding communities. Last year, the event provided food, entertainment, and vital resources to over 1,500 seniors, creating a vibrant and supportive space for connection and care. This year,

the Senator is aiming to double the event's impact.


Please stop by to learn more about the FAIR Access Initiative if you are in the area!


FAIR Attends NYC Aging Summit 

In mid-July, FAIR attended City & State’s New York Aging Summit in New York City. Participants heard from New York State Office for the Aging Director Greg Olsen and NYC Department for the Aging Commissioner Dr. Lisa Scott-McKenzie and attended sessions covering everything from insurance and long-term care models to strengthening mental well-being of older New Yorkers.


FAIR will follow up with lawmakers throughout the Summer and Fall to continue to advance the organization’s legislative priorities, which can be found here. 


If you are interested in attending these meetings, please contact .


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