Hochul and Jeffries Sound Alarm on Trump’s “One Big Ugly Bill” — Warn of Catastrophic Healthcare Fallout for New York

Governor Kathy Hochul and House Democratic Leader Hakeem Jeffries delivered a stark warning today about the devastating impact former President Donald Trump’s so-called “One Big Ugly Bill” would have on New York’s healthcare system. The Republican-backed budget reconciliation bill, already passed by the U.S. House of Representatives, includes sweeping cuts that would gut Medicaid and eliminate billions in federal healthcare funding — threatening hospitals, jobs, and healthcare access for millions of New Yorkers.

Standing at Interfaith Medical Center in Central Brooklyn, Governor Hochul joined Rep. Jeffries and key leaders from New York’s health care and labor sectors to denounce the bill’s devastating provisions. If enacted, the legislation would trigger $13.5 billion in annual losses for the state’s healthcare system and cause 1.5 million New Yorkers to lose their health coverage, including over $3 billion in losses for hospitals.

“Republicans in Washington have made it abundantly clear that they are determined to dismantle the social safety net,” Hochul said. “They’re targeting Medicaid and food assistance, and the consequences will fall hardest on working families. I will use every legal and legislative tool available to protect New Yorkers.”

Rep. Jeffries echoed the urgency. “This toxic scheme would strip health coverage from 1.5 million New Yorkers so billionaires like Elon Musk can get a tax cut,” he said. “Hospitals will shut down, nursing homes will close, and communities across the state will lose access to care.”

A Crushing Blow to Medicaid and the Essential Plan

The bill, passed entirely with Republican votes — including all GOP members of New York’s congressional delegation — would eliminate more than half of the Essential Plan’s funding, cutting over $7.5 billion and jeopardizing coverage for hundreds of thousands of low-income residents.

The Medicaid program would be further weakened by new work requirements, duplicative reporting mandates, and the elimination of funding mechanisms that help states like New York expand access. State officials estimate a combined $6 billion hit to Medicaid, including $2.5 billion in lost federal revenue and $500 million in new administrative costs.

“These cuts are short-sighted and dangerous,” said State Health Commissioner Dr. James McDonald. “This isn’t about making America healthy again — it’s about making America hurt again.”

Economic and Community Fallout

The consequences will stretch beyond individual coverage. New York’s hospitals — especially in vulnerable urban and rural areas — are bracing for massive shortfalls due to rising uncompensated care and lower reimbursements. State projections estimate over $3 billion in losses for hospitals, compounded by potential job cuts and service reductions.

“The impact will be felt in every community,” said Bea Grause, President of the New York State Health Care Association. “Every healthcare job lost will take another job with it — and every patient will suffer, not just those on Medicaid.”

Safety Net Institutions at Risk

Dr. Sandra Scott, CEO of One Brooklyn Health System, emphasized the disproportionate effect these cuts would have on safety net hospitals. “We’re talking about reduced emergency services, fewer maternal care options, and a system that simply can’t hold,” she warned. “This bill threatens the viability of hospitals that serve the most vulnerable.”

Michelle Ned, an in-service coordinator at Interfaith and member of 1199SEIU United Healthcare Workers East, made the human cost clear: “Federal Medicaid cuts would be devastating to Brooklyn. Vulnerable people will die. Our message is simple: hands off Medicaid.”

Fight Ahead

Governor Hochul has vowed to continue fighting the bill through every available legal and policy channel. The New York State Department of Health has also released a detailed district-by-district visualization of the projected losses, providing a stark breakdown of how deeply communities across the state would be affected.

“This bill is reckless, cruel, and deeply un-American,” Jeffries said. “We must bury it — and everything it represents — for good.”