Tax Cuts for Billionaires Projected to Cost Erie County $12.3 million in 2026, Over $100 million by 2028; House GOP Budget Cruelty Targets Poor, Elderly, Sick, Hungry Americans to Benefit the Wealthy
Poloncarz Outlines Looming Fiscal Hit as Counties, Municipalities Left Holding the Bag
ERIE COUNTY, NY— Erie County Executive Mark C. Poloncarz today outlined some of the fiscal impacts on Erie County that would result if proposed federal budget cuts and changes to Medicaid and the Supplemental Nutrition Assistance Program (“SNAP”) outlined in the GOP-led House become a reality. While changes to this devastating proposed budget could happen when the Senate reviews the document, estimates from the Erie County Department of Social Services (“ECDSS”) currently place a direct cost of $12.3 million to Erie County in 2026 and over $100 million annually by 2028 if these changes become law. In addition, deep personnel cuts at the federal level in the departments of Health and Human Services and Medicaid have gravely impacted those departments’ ability to provide even the most basic services, worsening the crisis.
“The damage being done to American families by this administration is becoming clearer by the day and these proposed cuts are the latest examples of that. Putting aside the fact that the current president and congress ran on the promise of not cutting these programs, a promise they have brazenly broken, the real tragedy is that their shameless lies to benefit billionaires will make working Americans sicker, poorer, and less safe,” said Erie County Executive Mark C. Poloncarz. “Let’s stop pretending to believe their lies about ‘cutting waste’. These cuts are purposeful, targeted attacks on the most vulnerable Americans, people who deserve to live lives of dignity and quality. It’s an unconscionable travesty and we all need to speak out against it.”
Poloncarz was joined by Commissioner of Social Services Karen Rybicki to discuss how these cuts will hurt Erie County residents. Recently, the Inspector General of the Department of Health and Human Services, who provided oversight of the Department, was abruptly fired as were eighty people in the Center for Consumer Information and Insurance Oversight (providing oversight of the ACA) and two hundred people in the Office of Program Operations and Local Engagement (providing Medicaid Plan oversight). As a result, these vital departments that provide services and supports to millions of Americans have purposely been left understaffed and unable to perform the duties they are intended to.
Commissioner of Social Services Karen Rybicki added, “Our department is already stretched to the limit, working to help county residents access the services they need to lead better, fuller and richer lives while ensuring that accountability and transparency are always observed. These cuts force an onerous burden on our staff while at the same time taking away needed supports from people that cannot afford to lose them.”
The changes being considered and their impact on Erie County are below:
Medicaid Cuts & Changes:
- Move from Annual to Biannual Recertifications for ACA (Sec. 44108) NYS will need to assign additional compliance work to Erie County to meet this workload. This change will also force working families to take time from working to recertify twice a year with no administrative benefits. Estimated cost to Erie County: Over $6.7 million for 108 new positions in Community Medicaid.
- Reduced FMAP & State Directed Payments (Sec. 44111, Sec. 44133) This affects Erie County’s relationship with ECMC; every dollar of reduced reimbursement to ECMC must be paid by Erie County. This reduction would also force the county to absorb 50% of the cost of all the newly uninsured individuals from this change, with impacts/losses in NYS-directed payments still unknown at this time. Estimated cost to Erie County: $50 million baseline in 2025, plus impacts listed above.
SNAP Cuts & Changes:
- Increased ABAWD Compliance populations (Sec. 10002, Sec. 10003) Forces seniors to continue to work until age 64 to maintain SNAP benefits and removes exemptions for working families by reducing dependent child age from under 18 to under 7. This change also eliminates the Standard Utility Allowance for working households, reducing their SNAP benefits. Estimated cost to Erie County: over $3.2 million for 36 new positions in SNAP compliance.
- 25 % Decrease in SNAP Administrative Reimbursement (Sec. 10007) Erie County could have to pay for its portion of this cut if NYS reallocates these cuts back to the county level. Estimated Cost for Erie County Portion: over $2.4 million for Erie County administrative costs.
- 25% Increase in SNAP benefits Costs in 2028 (Sec. 10006) Erie County could have to pay for its portion of the cut if NYS reallocates these cuts back to the county level. Total NYS share is $1.9 billion. Estimated cost for Erie County portion: $84.4 million (2025 baseline).
In addition to the severe cuts and changes to Medicaid and SNAP, the trump 2026 Budget also proposes the total elimination of HEAP, Head Start, Community Development Block Grant and HOME funding, Section 8, PHEP, the EPA Revolving Water Fund, and Americorps. The loss of these programs, which millions of Americans rely on and benefit from, would be staggering to communities nationwide.
Poloncarz concluded, “I urge everyone to contact their congressional representative, no matter who that is, and let them know that these cuts are unacceptable. While the president is accepting a $400 million bribe from a foreign dictator he’s simultaneously taking away critical programs and services that residents in communities nationwide, including Erie County, rely on to improve their everyday lives. Now is the time to speak up against these injustices and I implore everyone to do so.”
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