The New York State Budget for FY2025-2026 has been finalized and will soon be enacted. Below is a summary of the final budget and how it addresses several key issues impacting CHCs. Click here to download CHCANYS’ full overview of the health budget.
Final Outcomes on CHCANYS Priorities:
- MCO Tax Investment: CHCs will receive up to $40 million total in 2025 (increased from the Executive Budget proposal of $20 million). While this remains well below our original request of $150 million and the level of need across the CHC network, we view the increase as a recognition from the Governor and Legislature of the need to invest in CHCs, particularly given that many other sectors did not receive increases above the Governor’s original proposal.
- CHC Rate Reform: Not included. While the $40M investment is appreciated, the current rate structure remains fundamentally outdated and insufficient to meet ongoing cost pressures. Reform remains a top priority.
- Telehealth Payment Fix: Not included. We are disappointed that the final budget did not address this critical issue. A technical fix to ensure full payment for telehealth services, regardless of patient or provider location, would have had minimal fiscal impact and significantly supported access to care.
- School-Based Health Center Managed Care Carve-In: Delayed until April 1, 2026.
- Medical Assistants as Vaccinators: Not included. As is the case each budget, all workforce-related proposals were removed from the final budget. Allowing trained medical assistants to administer vaccines under appropriate supervision is an important opportunity to strengthen the CHC workforce and improve access. We will work to advance legislation through the legislative session.
- Appropriations: Appropriations for various CHC programs, including the uncompensated care safety net pool, PCMH, and the Migrant & Seasonal Farmworkers program, remained flat.
Thank you for your tremendous advocacy during the budget process!
CHCANYS Statement on the Final State Budget:
"This Year’s Budget Moves the Needle—But We Can’t Stop Here
This year’s budget included a $40 million investment in community health centers—an encouraging first step that shows the Governor and Legislature recognize the essential role CHCs play in keeping all New Yorkers healthy. Yet there is more to be done, and this year’s investment is a baseline—not a finish line. We look forward to building on this momentum to ensure CHCs can continue providing high quality care to one in eight New Yorkers for years to come."