The New York State Legislature enacted the fiscal year 2026-2027 Health and Mental Hygiene Budget, codifying targeted inflationary rate increases for mental health, developmental disabilities, and substance-related services. The enacted budget also structures fee-for-service reimbursement rates for hospitals and nursing homes and alters Medicaid management provisions. Concurrently, the State enacted the Transportation, Economic Development and Environmental Conservation Budget, which includes utility rate adjustments and modifications to the New York Health Care Reform Act.

In addition to the budget enactments, lawmakers advanced numerous measures focused on behavioral health, public health prevention, and professional scope of practice. Both chambers passed legislation to permit telemedicine services for mental and behavioral health issues under the workers’ compensation system. The Senate also passed a bill authorizing licensed creative arts therapists to bill Medicaid directly, while the Assembly passed a measure requiring school districts and public libraries to provide and maintain on-site opioid antagonists.

On the regulatory front, the Office for People With Developmental Disabilities adopted an emergency rule allowing specialty hospitals to be certified as Intermediate Care Facilities for Individuals with Intellectual Disabilities. This administrative action addresses operational flexibility, expands residential options for individuals requiring comprehensive care, and mitigates ongoing staffing shortages across the developmental disability sector.