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Schumer pushes NY-specific measures into COVID-19 bill, unlocking nearly $2 million for GC

By Billie Owens

Press release:

U.S. Senator Charles Schumer announced today that the Senate has passed another bipartisan emergency legislative package to combat the coronavirus (COVID-19), sending the bill that will deliver billions of dollars to New York, and millions to the counties, to President Trump for his signature.

Schumer successfully pushed to include a cost-sharing provision in the legislation so New York’s counties, which pay part of Medicaid’s costs, benefit from the increase federal Medicaid support. Schumer has successfully championed this provision in prior disaster response legislation, including after 9/11, Hurricane Sandy and the 2008 financial meltdown.

The Schumer-backed emergency measure delivers billions to New York and its counties immediately, while the state, city and local governments works to contain the virus’s spread and cover mounting costs in new "hot spots."

“Enhanced FMAP funds are so important because they are immediate and flexible. The state – which gets billions and the most of any state in the nation – and counties use the money they save on whatever they want, alleviating pressure from the crisis,” Senator Schumer said.

“New York is the national epicenter in the coronavirus fight and this bill will ensure New York and its counties have the tools, the dollars, and the federal resources to go at the virus with full force. I am proud to deliver this support that will unlock billions for New York state and send money directly to counties on the front lines of this battle as we all work together to contain the virus’s spread and cover mounting costs.”

Schumer explained that statewide dollars related to healthcare funds known as “FMAP," unemployment benefits, and meals for seniors who might become homebound were included in the final bill, and said all of this will mean billions for New York. Schumer called on Leader McConnell to work with him last week to send the measure to President Trump’s desk ASAP.

“This passed in the Senate with bipartisan effort because we recognize the challenges that states, especially New York, are facing in the coronavirus battle,” added Schumer. “These are dollars for New York healthcare, free testing, paid emergency leave, unemployment insurance, meals for homebound seniors, and other critical efforts that are needed to sustain the mission.”

Schumer said he scored the haul by temporarily adjusting the state’s Medicaid reimbursement rate. Right now, the federal government pays 50 percent of expenses for Medicaid in New York. Under the deal, the feds would temporarily pay approximately 56 percent.

New York Essentials

+$6B in healthcare funds for New York -- Schumer explained, once signed by President Trump, on an annual basis, the bipartisan deal will deliver more than $6 billion in critical healthcare dollars to New York in the form of what is called “FMAP,” which encompasses the state’s Medicaid program. That program is jointly funded by the federal government and the states. FMAP is a matching rate enacted in 1965 that determines the federal funding share for state Medicaid programs.

The federal government matches state funds spent on Medicaid, based on the state’s FMAP, which varies by state. For example, New York’s FMAP is 50 percent. This means that for every dollar spent on Medicaid in New York, New York’s share of the cost is fifty cents (this 50 cents, in turn, is split between the State and Counties and localities), while the federal government chips in the other 50 cents.

Only some states have FMAPs of 50 percent and New York is one — Schumer’s efforts increased the federal share of New York’s Medicaid program to 56.2 percent, thereby dropping the state’s share to 43.8 percent. This delivers more federal dollars immediately to the state and localities, to the tune of more than $6B annually.  

The Breakdown

State share: $5.26 billion

NYC share: $1.038 billion

Counties share: $436 million

  • Genesee County: $1.9 million

​The Medicaid program plays a critical role in helping states respond to disasters and public health emergencies like the coronavirus. For example, Medicaid was able to provide enhanced funding and coverage in response to the Zika virus outbreak in Puerto Rico. There are also millions of Americans who depend on Medicaid for access to essential health care, including vaccines and diagnostic tests.

Recognizing that New York State and localities are in dire need of direct fiscal aid and are forced to share the cost of Medicaid, Schumer in 2009, fought to make sure that New York State counties and localities received direct aid from FMAP through the financial crisis, a roughly $12B package. Even farther back, in 2003, Schumer was successful in getting a share of FMAP for states during an economic downturn, of $10 billion in fiscal relief through a temporary FMAP increase that lasted five fiscal quarters. 

$1B for people who might find themselves out of work—Schumer explained, once signed by President Trump, the Act will also deliver more than $1B in additional unemployment benefits to states, unlocking tens of millions of new dollars to help New York as the virus’s economic impacts risk taking effect. This emergency package would also waive certain measures, such as work search requirements or waiting weeks to those who have lost their jobs over the spread of coronavirus, or those who have been diagnosed. Unemployment Insurance (UI) programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own, and meet certain other eligibility requirements.  

$15M dedicated specially to New York seniors who might need meals—Schumer explained, once signed by President Trump, the emergency bill will also include a special pot of $15 million for meals homebound seniors might require. The funds would be in addition to a larger federal tranche of hundreds of millions that would deliver more resources to local food banks and pantries. Schumer said the meals for seniors is especially important because these folks are most vulnerable to the virus and might need to remain socially isolated for a certain duration.

In addition to this bill, Schumer also negotiated and passed an emergency $8.3 billion coronavirus supplemental signed by President Trump last week that will deliver hundreds-of-millions to New York State, New York City and New York institutions as they wage the fight and ramp up virus testing measures. Moreover, yesterday, at Schumer’s urging, President Trump heeded the call to enact a national emergency. The disaster declaration will allow FEMA to provide emergency protective measures to the state at a 75 percent federal to 25 percent state cost share for a wide range of eligible expenses and activities.

The Families First Coronavirus Response Act also delivers billions in free coronavirus testing, paid sick leave for workers, strengthens food assistance by $1B.

As of 8 a.m. today, March 18th, the New York Department of Health reported more than 1,300 cases in New York state, with 17 deaths.

While the immediate health risk to the majority of the American public is thought to remain low, Schumer has emphasized that the challenges of community spread have already begun to strain New York state and local government responses, particularly health departments, which is why this latest measure is so critical.

Confirmed Cases of Coronavirus In New York (8 a.m., March 18)

New York City

1,399 (10 deaths)

Albany

36

Allegany

1

Broome

1

Chenango

1

Clinton

1

Delaware

1

Dutchess 

20

Erie

7

Genesee

1

Greene 

2

Herkimer

1

Jefferson

1

Montgomery

1

Monroe 

14 (1 death)

Nassau

183 (1 death)

Niagara

1

Oneida

2

Onondaga

2

Ontario 

1

Orange

32

Putnam

2

Rensselaer

1

Rockland

30 (2 deaths)

Saratoga

14

Schenectady

5

Suffolk

116 (3 deaths)

Sullivan

1

Tioga

1

Tompkins

3

Ulster 

8

Westchester

538

Wyoming

1

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