{"id":2473300,"date":"2025-08-11T12:03:02","date_gmt":"2025-08-11T16:03:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-faces-34-billion-budget-gap-due-to-federal-cuts-heightened-spending\/"},"modified":"2025-08-11T12:03:46","modified_gmt":"2025-08-11T16:03:46","slug":"new-york-faces-34-billion-budget-gap-due-to-federal-cuts-heightened-spending","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-faces-34-billion-budget-gap-due-to-federal-cuts-heightened-spending\/","title":{"rendered":"New York faces $34 billion budget gap due to federal cuts, heightened spending"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-york-faces-34-billion-budget-gap-due-to-federal-cuts-heightened-spending%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2473300&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>New York State is facing a $34 billion budget deficit, a 25% increase over the past three years, marking its largest shortfall since the 2009 financial crisis.According to State Comptroller Thomas DiNapoli, this deficit is driven by rising spending on Medicaid and education combined with notable federal cuts to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-lawmakers-introduce-legislation-to-give-unemployment-benefits-to-illegal-aliens\/\" title=\"California Lawmakers Introduce Legislation to Give Unemployment Benefits to Illegal Aliens\">safety-net programs<\/a> under the Trump governance and Congressional Republicans&#8217; spending legislation. The state has approved a $254 billion budget for the upcoming year, with Medicaid costs exceeding $112 billion, representing about 44% of the total budget. Gov. Kathy Hochul has warned that federal reductions in Medicaid funding could cost New York around $13 billion annually,worsening healthcare and other social services.Additionally, funding cuts to climate, clean energy, and resiliency initiatives are expected. School spending also increased by $37 billion (4.8%). Furthermore, New York&#8217;s job growth has slowed dramatically in early 2025, growing by 4,600 jobs per month compared to 19,100 monthly during the same period the previous year.dinapoli emphasized the urgent need for a fiscal strategy to address these challenges and support the state&#8217;s <a href=\"https:\/\/amzn.to\/3YuVZYV\" >social safety net amid<\/a> the restructuring of federal-state relationships.  <\/p>\n<div id=\"ld-4686-3758\"><\/div>\n<p><script>(function(w,d,s,i){w.ldAdInit=w.ldAdInit||[];w.ldAdInit.push({slot:14832835450050406,size:[0, 0],id:\"ld-4686-3758\"});if(!d.getElementById(i)){var j=d.createElement(s),p=d.getElementsByTagName(s)[0];j.async=true;j.src=\"https:\/\/cdn2.decide.dev\/_js\/ajs.js\";j.id=i;p.parentNode.insertBefore(j,p);}})(window,document,\"script\",\"ld-ajs\");<\/script><\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">New York faces $34 billion budget gap due to federal cuts, heightened spending<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2171922\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/new-york\/\" target=\"_blank\" rel=\"noopener\" title=\"\">New York<\/a>&rsquo;s cumulative <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/budgets-and-deficits\/\" target=\"_blank\" rel=\"noopener\" title=\"\">budget deficit<\/a> has increased by $34 billion, or 25%, over the last three years, state Comptroller Thomas DiNapoli said in a report Friday.<\/p>\n<p>The estimated budget gap represents the state&rsquo;s largest since the financial crisis in 2009. The state&rsquo;s deficit is due in part because of increased spending for Medicaid and education at the same time the Trump administration has made billions in cuts to safety-net programs and solidified in Congressional Republicans&rsquo; spending bill.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/3496083\/judge-rejects-doj-unseal-ghislaine-maxwell-grand-jury-records\/\">Judge rejects DOJ bid to unseal Ghislaine Maxwell grand jury records<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3496096\/trump-federalizes-washington-dc-police-activates-national-guard-combat-crime\/\">Trump federalizes DC police and activates National Guard to combat crime: &#8216;Take our capital back&#8217;<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/house\/3496078\/rosa-delauro-hospitalized-will-undergo-surgery-spinal-stenosis\/\">Rosa DeLauro hospitalized, will undergo surgery for spinal stenosis<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>&ldquo;This is likely just the beginning; the relationship between the federal government and the states is being restructured, and state governments will be facing drastic reductions in federal aid that could force difficult decisions about state revenue and spending priorities,&rdquo; DiNapoli said. &ldquo;There is an urgent need to formulate a fiscal response to the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-reconciliation-bill-includes-free-community-college-tuition-for-illegal-immigrants\/\" title=\"Democrats\u2019 Reconciliation Bill Includes Free Community College Tuition For Illegal Immigrants\">federal reconciliation bill<\/a> and support New York&rsquo;s safety net.&rdquo;<\/p>\n<p>State lawmakers approved a <a href=\"https:\/\/www.washingtonexaminer.com\/news\/3394626\/kathy-hochul-controversial-budget-new-york\/\" target=\"_blank\" rel=\"noopener\" title=\"\">$254 billion budget<\/a> for next year. Medicaid spending rose to more than $112 billion, about 44% of the total budget. The increase comes as Gov. Kathy Hochul (D-NY) has said federal cuts to health Medicaid will cost New York&rsquo;s health-care system and budget about $13 billion per year.<\/p>\n<p>&ldquo;Besides increasing the number of New Yorkers who are uninsured or suffering from food insecurity, the state will also contend with changes made to terminate funding for climate, clean energy and resiliency programs,&rdquo; DiNapoli said.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/news\/senate\/3473786\/deficit-hawks-uphill-climb-latest-doge-cuts\/\" target=\"_blank\" rel=\"noopener\" title=\"\">DEFICIT HAWKS FACE UPHILL CLIMB AFTER LATEST DOGE CUTS<\/a><\/strong><\/p>\n<p>Spending for schools increased by $37 billion, or 4.8%.<\/p>\n<p>Job growth in the Empire State has also slowed dramatically compared to last year. From January to May 2025, New York employment growth averaged 4,600 jobs per more, which is down from 19,100 a month during that same period last year.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_2171922\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"2171922\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York&#8217;s budget shortfall grows $34B amid federal cuts<\/p>\n","protected":false},"author":2910,"featured_media":2473301,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/Hochul-DNC-2.webp","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[54691,57330,61067,32120,61066],"class_list":["post-2473300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-budget-gap","tag-federal-cuts","tag-finance-crisis","tag-new-york","tag-state-spending"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/Hochul-DNC-2.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2473300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2910"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2473300"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2473300\/revisions"}],"predecessor-version":[{"id":2473304,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2473300\/revisions\/2473304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2473301"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2473300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2473300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2473300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}