New York state lawmakers are not planning a special legislative session to address the financial challenges posed by recent federal spending cuts. The Assembly majority met to discuss the impact of these cuts, which are expected to create a $750 million budget gap this fiscal year and a $3 billion loss in federal funding next year. However, no plans have been made to return to Albany before the next legislative session begins in January.

The cuts stem from President Donald Trump's tax and spending bill, known as the One Big Beautiful Bill, which was signed into law on July 4. According to New York's Budget Director Blake Washington, the bill will significantly affect Medicaid and other healthcare programs, with changes starting in January. Washington noted that the state is prepared to manage the current $750 million shortfall but acknowledged the difficulty in covering a $3 billion deficit.

The federal cuts have sparked concern among state officials about the potential destabilization of New York's healthcare system. Medicaid, which provides healthcare for low-income and disabled people, is the largest funding stream affected. The cuts are expected to result in 1.5 million people losing state-backed health insurance and could lead to 34,000 job losses in the healthcare sector.

Despite the challenges, Governor Kathy Hochul has stated her opposition to raising state income taxes to offset the deficit. Instead, the state will rely on its record-high $8.8 billion fund reserve balance to address budget gaps. However, Washington emphasized that there is no way to finance the cuts imposed by the federal government, and difficult decisions lie ahead.

The state budget, adopted in May, did not anticipate these federal cuts, and lawmakers have not made adjustments to the spending plan. While a special session remains a possibility, there is currently no definitive plan in place to address the financial challenges before the next legislative session in January.