States would be barred from redirecting key Medicaid funds from local governments under a federal measure aimed at a provision in Gov. Kathy Hochul's $227 billion budget plan.
New York House Republicans on Monday proposed the measure in response to Hochul's budget using money from Federal Medical Assistance Percentage funds that are normally sent to county governments in New York.
Hochul's budget could result in an absoption of about $1 billion in the funds.
Republican Reps. Marc Molinaro, Claudia Tenney and Nick Langworthy are backing the legislation with about a month until the governor and state lawmakers are expected to reach an agreement on a state spending plan.
"Congress intended federal Medicaid dollars to go directly to local governments for services that children, seniors, working moms, and our most vulnerable neighbors rely on," Molinaro said.
County governments in New York have also protested the potential move, raising concerns it could lead to higher property taxes.
“More than a decade ago, New York’s counties turned to our Congressional Delegation to ensure that new federal Medicaid aid to states would directly benefit the county taxpayers whose property taxes fund the program," said Clinton County Administrator Michael Zurlo. "With Gov. Hochul following in the footsteps of her predecessor by attempting to intercept this aid, counties are once again appealing to our federal champions to stand up on behalf of local taxpayers."