Hochul warns new federal policy could disrupt child health insurance for over 750,000 in NY

James V. McDonald M.D.
James V. McDonald M.D.
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Governor Kathy Hochul has raised concerns over a new federal policy that could end health coverage for more than 750,000 young children in New York State. The Governor released updated county-level data showing the potential impact across all regions if the policy from the Centers for Medicare and Medicaid Services (CMS) is implemented in 2027.

“New York will not stand by while the federal government jeopardizes children’s health coverage,” Governor Hochul said. “This misguided policy threatens the progress we’ve made in keeping young children connected to care during the most critical years of their development. We will use every tool at our disposal to protect access to Medicaid and Child Health Plus for the more than 750,000 young children across New York State who depend on it for a healthy start in life.”

New York had recently adopted a policy guaranteeing continuous health insurance coverage from birth through age six for children enrolled in Medicaid and Child Health Plus, even if family circumstances change. Experts warn that interruptions in coverage can harm children’s long-term physical and mental health as well as their educational and financial outcomes.

A letter from CMS informed state officials that federal support would be phased out for programs providing continuous Medicaid coverage to vulnerable groups, including New York’s initiative. While funding is not immediately withdrawn, CMS signaled it will not approve extensions or similar programs going forward. The state’s current program was launched under a federal 1115 demonstration waiver beginning January 2025.

New York State Health Commissioner Dr. James McDonald stated, “Children deserve every opportunity to grow up healthy and thrive. Ensuring they have access to health coverage during their critical years of development is both the right thing to do and sound public health investment. The Department remains committed to protecting the health and wellbeing of New York’s youngest and most vulnerable residents.”

Elected officials have also voiced strong opposition to the policy shift:

Senator Charles Schumer said, “Cuts to healthcare for children younger than age six is as cruel as it gets. The Trump administration’s new policy will threaten health insurance for more than 750,000 children in every corner of New York. With Trump’s ‘Big, Ugly Betrayal’ already set to hurt our local hospitals and kick millions of New Yorkers off their health insurance, it makes no sense to target our youngest children and kick them off their coverage. I will fight tooth and nail to protect access so our children can start life with the healthcare they deserve.”

Senator Kirsten Gillibrand added, “Children in New York and across the country deserve access to high-quality and reliable health care. This policy will put their coverage at risk and hurt our kids. I will fight any attempt to rip health care away from our children and the most vulnerable in our communities, and I urge the Trump administration to reverse this destructive decision before it causes lasting harm to young children and families.”

Representative Nydia M. Velázquez commented, “First, Republicans pushed through the Big Ugly Bill to gut Medicaid and now they’re targeting children’s health insurance. Taking coverage away from over half a million kids in New York endangers the health of future generations and threatens to undo decades of progress our state has made to ensure low-income families have uninterrupted access to care. We can’t allow Republicans to play politics with our children’s lives. We must protect continuous health care coverage for every child from birth through their early years, because their future depends on it.”

Other members of Congress representing New York echoed these concerns about possible negative impacts on local communities.

The proposed changes come alongside previous legislative actions known as “the Big Ugly Bill,” which imposed significant cuts on Medicaid funding affecting millions statewide—posing an estimated fiscal impact of nearly $13 billion per year on New York’s healthcare system—and making it harder for providers across [the state](https://www.governor.ny.gov/news/governor-hochul-announces-federal-policy-will-endanger-health-insurance-coverage-more-750000) ([additional details](https://health.ny.gov/press/releases/2025/2025-08-20_federal_policy_endangers_childrens_health_insurance.htm)).

Updated figures show that roughly 752,200 children aged 0–6 are currently enrolled in either Medicaid or Child Health Plus throughout all counties in New York State.

State lawmakers have argued that rolling back these protections may undermine recent efforts aimed at improving childhood outcomes among low-income families.

Assembly Speaker Carl Heastie said, “Republicans can lie or twist the true impact of this bill as much as they want, but the data rings true – this bill will absolutely devastate our communities. Our children are our greatest gift – our country’s future – yet Republicans have decided the pockets of their wealthy donors are more important than keeping our most vulnerable young people safe and healthy. I am once again disgusted by New York’s seven Republican members of Congress who have supported this bill to score political points while their communities suffer the consequences.”

The Governor indicated her administration would pursue all available options at both state and federal levels in response.



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