Federal Tax & Spending Bill Sets A New – And Overdue –  Direction For How Government Spends Public Money  

     The recent signing of the federal tax and spending bill (H.R. 1)—The One Big Beautiful Bill—has predictably been met with resistance from Albany’s One-Party Rule. State Democrats have retreated from earlier suggestions of a special legislative session to address funding concerns, however they are nonetheless united in their opposition to reforms, restructuring and streamlining the state’s most costly benefit programs.

     While ignoring all of H.R. 1’s significant benefits, opponents of the bill are fixated on changes coming to Medicaid, which include work and eligibility requirements, and the potential loss of enrollees.

     It’s important to know the whole story. New York’s Medicaid program is the second-most expensive in the nation, behind only California. At a total cost of $125.8 billion, including a $44.7 billion state share, Medicaid has clearly drifted too far away from the original intent of the program. What was designed to be a mechanism to provide low-income and disabled individuals with critical health care has since snowballed into an avalanche of government bloat and excess.

     The unchecked growth of Medicaid has been driven by spending decisions from Albany. The policymakers most unnerved at the thought of more efficient health care and public-assistance programs are the ones largely responsible for the current mess. Despite warnings this spring of federal fiscal action, Democrats passed an unprecedented $254 billion budget that increased the state share of Medicaid by 16.3%. They saw a “Stop” sign but accelerated through it when they should have been slowing down.

     To help control unsustainable growth, it is entirely appropriate to verify eligibility and meet criteria for participation in a program funded by taxpayers. There is nothing unfair about setting basic expectations to ensure that capable, qualified individuals are part of the workforce rather than enabling an over-reliance on public assistance. We can make sure people are receiving the help they need while also ensuring New York’s benefit programs are actually working the way they’re supposed to.

     The changes driven by H.R. 1 represent an overdue shift away from Democrats’ unsustainable approach to spending: Demand a blank check and no questions asked from the taxpaying public.

     On Thursday, Gov. Hochul convened a camera-friendly meeting of state agency heads to once again criticize the federal spending bill. She announced her intention to travel across New York and campaign against H.R. 1. It’s hard to imagine that during her scare-tactic road show the governor will mention all components of the federal plan, including wildly popular provisions to:

     Rather than acknowledge provisions of H.R. 1 that will put money in the pockets of millions of Americans, expect more of the same political posturing from the governor and her allies. Since January, they have incorrectly predicted doomsday scenarios of a crashing economy, unbearable inflation and a spiraling stock market—none of which have materialized. Instead, inflation sits at 2.7%, nearly half the average rate we experienced during President Biden’s four years (5%); gas prices hit a four-year low during Fourth of July weekend; and the most recent jobs report shows 147,000 jobs were added in June, exceeding all expectations.

If nothing else, The One Big Beautiful Bill has forced New York’s liberal tax-and-spend policymakers to look in the mirror. The tough decisions and steps toward fiscal responsibility that have been put off for years are finally going to have to be made. For millions of over-taxed New Yorkers who send too much of their paychecks to Albany, that’s a good thing.

If you have any questions or comments on this or any other state issue, or if you would like to be added to my mailing list or receive my newsletter, please contact my office. My office can be reached by mail at 19 Canalview Mall, Fulton, NY 13069 and by email at [email protected]. You may also find me, Assembly Minority Leader Will Barclay, on Facebook or Twitter at @WillABarclay.