House Republicans Investigate New York Governor Over Medicaid Funding Concerns
WASHINGTON — House Republicans have begun an investigation into New York Governor Kathy Hochul, focusing on her alleged decision to withhold Medicaid funding from local hospitals, which serve some of the state’s most vulnerable populations. This move is seen as an attempt to mask a billion-dollar budget deficit that has plagued New York.
The inquiry was announced by House Oversight Committee Chairman James Comer from Kentucky, along with other prominent GOP figures, including Marjorie Taylor Greene of Georgia and New York Representatives Mike Lawler and Nick Langworthy. In a letter sent to Hochul, they asked for records related to what they described as the “abuse of federal taxpayer funds.”
“Local governments are being forced to raise property taxes and cut vital services because of this fiscal coverup,” the lawmakers asserted, highlighting the impact on smaller counties like Broome and Erie, which lack the large tax base needed to absorb the state’s financial mismanagement.
In another alarming development in Nassau County, a hospital’s struggle with funding was reported to have triggered a so-called “hostile takeover” by the governor, leading to the appointing of new board members. Executives who resigned in protest claimed that this move interfered with local governance and jeopardized patient care.
As the controversy grew, Hochul’s administration had previously signaled a shift in Medicaid funding strategy, planning to phase out federal aid to localities by April 2026. Critics argue that this change could further jeopardize healthcare access for those in need.
According to Hochul’s office, while the state had historically benefited from federal funding for Medicaid services—saving counties nearly $38 billion since 2015—the decision to restrict those funds is part of a larger strategy to secure investments in essential healthcare services. They claim that reallocating federal dollars is aimed at improving healthcare access and equity.
However, the House Republicans countered this narrative by pointing out the challenges facing hospitals like the Nassau University Medical Center (NUMC). NUMC is the sole public hospital in Nassau County and serves a patient population where approximately 80% are uninsured. The lawmakers emphasized that denying critical federal Medicaid funds under the guise of budgetary adjustments is simply unacceptable.
NUMC had previously filed a lawsuit against the state, alleging it was wrongfully denied over $1 billion in federal Medicaid funding, which is mandated by law. Instead, the hospital has been compelled to contribute to New York’s share of the federal funding for several decades.
A recently brokered budget agreement by Hochul and New York legislators also included provisions that would lead to state control over NUMC’s board, effectively removing local officials from any decision-making roles at the hospital.
Rep. Mike Lawler stated, “Using federal taxpayer funds, which are meant to safeguard healthcare for vulnerable populations, to cover for your state’s fiscal shortfall is simply unacceptable.” His colleagues in Congress echoed this sentiment, demanding transparency and accountability from Hochul’s office.
With an impending deadline set for July 16, Hochul must provide all requested documents regarding the actions taken against NUMC, the rationale behind withholding Medicaid funding, and more information on the state’s financial strategy concerning the Disproportionate Share Hospital payments program.
Republican lawmakers are pressing for answers, seeking to expose what they claim is a mismanagement of funds that ultimately harms the state’s most vulnerable citizens. The outcome of this investigation could have significant implications for New York’s healthcare system and the accountability of its leadership moving forward.
As the scenario continues to unfold, many are watching closely to see how state and federal interactions over critical funding will impact services in local communities across New York.
