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Funding Cuts to Medicaid and Human Services Will Be Devastating to People With Disabilities, Individuals With Mental Health Challenges, and Those With Complex Medical Needs
By Mike Oates
On March 13, thousands of advocates, families, service providers, and community leaders will gather at Rockland Community College for the 2026 Rally in the Valley, organized by Jawonio in partnership with more than 35 nonprofit agencies as part of the Hudson Valley Services Providers including Abilities First, Access Supports for Living, Mid-Hudson ARC and the Center for Discovery. This event is far more than a rally. It is a collective call to action to protect the essential services that support people with disabilities, individuals with mental health challenges, and those with complex medical needs throughout the Hudson Valley and New York State.
As President and CEO of HVEDC, I spend every day focused on economic growth, workforce development, and long-term regional prosperity. But no economic development strategy can succeed if we abandon our most vulnerable neighbors. The services provided by organizations like Jawonio, Abilities First, Access Supports for Living, WIHD, and the Center for Discovery are not “nice to have.” They are foundational. They sustain families, enable participation in the workforce, and ensure dignity, independence, and opportunity for tens of thousands of New Yorkers.
At the heart of this rally is a simple but urgent message: funding cuts to Medicaid and human services will be devastating. Providers across our region are already struggling under the weight of inflation, rising operational costs, workforce shortages, and years of chronic underfunding. Without immediate and meaningful investment, we risk destabilizing a care system that millions depend on.
The reality is stark. Medicaid reimbursement rates have failed to keep pace with inflation, leaving nonprofit agencies unable to fairly compensate direct support professionals, maintain facilities, cover transportation and utilities, and deliver the high-quality services their clients deserve. Agencies are calling for targeted inflationary increases, workforce affordability initiatives, and infrastructure investment—measures that are essential to prevent service reductions, staff burnout, and program closures.
When funding is cut, the consequences ripple far beyond agency balance sheets. Families face longer waitlists and fewer service options. Individuals lose critical supports that allow them to live independently, pursue education, and hold jobs. Workers—who already earn wages far below what their responsibilities merit—are pushed out of the sector, worsening staffing shortages and eroding continuity of care. Communities lose stability, productivity, and trust in public systems meant to protect them.
From an economic development perspective, this is deeply concerning. Human service agencies represent one of the largest employment sectors in the Hudson Valley, providing tens of thousands of stable jobs while generating significant economic activity. Weakening this sector undermines our labor market, increases pressure on emergency rooms, law enforcement, and homeless services, and ultimately drives higher public costs.
This moment requires leadership and courage. Policymakers must commit to protecting Medicaid, increasing reimbursement rates, strengthening the direct care workforce, and investing in modernized service infrastructure. These investments are not acts of charity—they are strategic commitments to economic resilience, workforce stability, and social equity.
At HVEDC, we believe inclusive growth is the only sustainable growth. A thriving Hudson Valley is one where everyone has access to opportunity, support, and dignity.
On March 13, I urge business leaders, policymakers, and residents to stand with these advocates. Show up. Speak out. Demand investment, not indifference.
Protecting these services is not just the right thing to do. It is the smart thing to do. And it is, without question, the necessary thing to do.
Event: March 13, 2026, at 11:00 AM at the Rockland Community College Fieldhouse, 145 College Road, Suffern, NY
Mike Oates is President & CEO of the Hudson Valley Economic Development Corporation (HVEDC)
