New York City faces federal funding threats impacting public health and Medicaid services

The Committees on Finance, Health, and Mental Health convened on May 26, 2025, to discuss the Fiscal Year 2026 Executive Budget for New York City. The meeting focused on several critical issues, including the status of mental health services, housing programs, and potential federal funding threats.

The session began with a discussion about the Bronx Support and Connection Center, which was closed during the COVID-19 pandemic. Officials confirmed that this center, which provided mental health and substance use services, would not be reopened. However, the Harlem Support and Connection Center continues to operate, having served over 700 individuals in the past year.

Next, the committee addressed the occupancy rates of supportive housing units. It was reported that the city maintains a 95% occupancy rate across its 20-unit scattered site supportive housing programs, which comprise about 25% of the total 12,688 supportive housing units available.

A significant portion of the meeting was dedicated to the looming threats posed by potential cuts to federal funding, particularly concerning Medicaid and the Centers for Disease Control and Prevention (CDC). Officials expressed deep concern over the impact these cuts could have on public health infrastructure in New York City. Approximately $600 million in federal funding supports various health programs, with a substantial portion allocated to mental health and infectious disease initiatives. The committee highlighted that nearly half of the city's population relies on Medicaid, underscoring its critical role in maintaining the operations of safety net hospitals.

In response to these funding threats, city officials have engaged in extensive planning to assess the implications of potential cuts. They are reviewing all federal grants and the services they support to prepare for possible budget adjustments.

The meeting concluded with a commitment to continue monitoring the situation and to advocate for necessary funding to ensure the sustainability of health services in New York City. The discussions underscored the interconnectedness of mental health services, housing support, and federal funding in maintaining the city's public health framework.