By Isabella Torregiani
11:34am PDT, Jul 3, 2025
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On Wednesday, July 2, House Republicans launched a formal investigation into New York Governor
Kathy Hochul, accusing her of withholding medical funding and misusing federal taxpayer dollars.
Keep reading for more on the investigation…MORE:
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House Oversight Committee Chairman
James Comer, DOGE Subcommittee Chairwoman
Marjorie Taylor Greene and New York GOP Reps.
Mike Lawler and
Nick Langworthy are leading
the review. "This fiscal coverup has forced local governments to increase property taxes and cut local services," the group wrote. "It is felt most acutely in small and mid-sized counties like Broome and Erie who do not have the enormous tax base to easily make up for the state's clawbacks."
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In response to the investigation, Kathy Hochul's office fired back, dismissing the investigation as "a pathetic attempt by New York's Republican delegation to distract from their second vote to kick 1.5 million New Yorkers off their healthcare." Spokesperson Emma Wallner said, "If they really cared about their constituents' access to Medicaid, they'd head to the House floor and vote no on this disastrous [Big, Beautiful Bill]."
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The issue stems from a 2023 decision by Kathy Hochul's administration to begin phasing out federal support to local governments for Medicaid services, specifically through the Federal Medical Assistance Percentage (FMAP). The funding is set to be fully withdrawn by April 2026. "Given the governor's historic health care investments, the state is utilizing the available federal dollars to fund critical investments in Medicaid to ensure access, promote equity and stabilize the health system serving New York's most vulnerable," her office reportedly said at the time.
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The dispute escalated last year when Nassau University Medical Center (NUMC) sued the state, alleging it was unlawfully denied $1.06 billion in federal Medicaid funds. Now, Kathy Hochul has until July 16 to submit all documents related to NUMC, the Medicaid budget provision and the Medicaid Disproportionate Share Hospital (DSH) payments program. "The abuse of federal taxpayer funds intended to ensure health care coverage for the most vulnerable to cover up your state's budget shortfall is unacceptable," House Republicans wrote in their letter.
