On May 9, 2025, Governor Kathy Hochul signed into law New York State’s FY 2025–2026 budget. The final budget totals $254.3 billion, making it the largest in state history and representing a $17 billion increase from the previous fiscal year. The budget includes substantial investments in Medicaid, healthcare workforce initiatives, and maternal health programs. Here, we summarize the main provisions of the Budget related to home care.
In a significant victory for New York employers, the New York State Legislature passed and Governor Kathy Hochul signed into law on May 9, 2025 amendments limiting damages for a violation of Labor Law § 191(1)(a) to the following, which currently requires employers to pay “manual workers” (such as personal assistants and home health aides) no less frequently than weekly. Prior to the passage of this law, employers who failed to pay workers on time were subject to paying their employees – as damages – double the amount that was underpaid.
As New York State’s legislative session continues, the Legislature has introduced more than 15,000 bills so far in 2025. While much attention has been focused on finalizing the state’s Budget Bills, lawmakers have also pushed forward on several non-budget legislative proposals—many of which have significant implications for the home and community-based services sector.
On April 10, 2025, the U.S. District Court for the Eastern District of New York entered a stipulated preliminary injunction (the “Order”) in Engesser v. McDonald, providing more time for consumers and workers in the Consumer Directed Personal Assistance Program (CDPAP) to register with Public Partnerships, LLC (PPL) to ensure people do not lose their care. Engesser is a lawsuit that was filed on March 26, 2025, by CDPAP Consumers in New York State against the Department of Health (DOH). The April 10 Order was jointly agreed to by the plaintiffs and the DOH and replaces the prior Temporary Restraining Order (TRO) issued in Engesser and restructures how the transition to PPL will proceed through June 6, 2025, unless extended to a later date by the Court.
The New York State Department of Health (DOH) has now released a new set of Frequently Asked Questions (FAQs). These FAQs aim to address common inquiries and clarify compliance obligations for healthcare organizations navigating this still-evolving regulatory landscape.
This development comes nearly 18 months after the law took effect and reflects the DOH’s intent to provide practical direction on how the statute applies to real-world transactions in the healthcare space.
Yesterday, the plaintiffs’ firm that is representing a number of CDPAP advocates and the attorneys for the New York State Department of Health filed with the Eastern District federal court a joint proposed injunction, outlining terms that would implement the TRO of federal Judge Block, who had on March 31 granted an ambiguous and somewhat limited TRO regarding the single statewide fiscal intermediary (“SFI”) transition. Also last night, the U.S. Department of Justice (the “DOJ”) filed a “Statement of Interest of the United States of America” in the same federal lawsuit, expressing the DOJ’s interest in reviewing the ongoing transition of the SFI, and what the DOJ alleges may be privacy violations committed by New York State, as well as misrepresentations regarding “an ongoing transition of federal healthcare benefit programs.” Here, we summarize both of these developments.
On Wednesday, April 2, 2025, federal Judge Block modified his order from March 31, 2025 to clarify that New York State must “ensure and take whatever action is necessary to ensure that all CDPAP consumers and PAs who received care and payment before April 1, 2025, regardless of the present registration status, shall continue to receive care from their existing PAs, who shall be timely paid for their service.
On March 24, 2025, the Department of Health (DOH) issued guidance regarding the payment of wages to Personal Assistants (PAs) in the Consumer Directed Personal Assistance Program (CDPAP) for hours worked in April 2025 during a newly granted “grace period” for consumers and personal assistants who have not registered with PPL as of April 1, 2025. The policy outlines the conditions under which retroactive payment will be authorized and the process for issuing such payments once all required onboarding steps for PPL are fulfilled.
On Monday, the New York State Department of Health (“DOH”) issued cease and desist letters to 17 fiscal intermediaries, alleging that these agencies have been providing false information to the public and consumers in an attempt to impede the implementation of the single fiscal intermediary (“SFI”) program. Here, we describe these letters and what the State’s actions mean for the transition to SFI.
In January 2025, President Trump issued Executive Order 14187, titled “Protecting Children from Chemical and Surgical Mutilation” (“EO 14187”) and Executive Order 14168 titled “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government” (“EO 14168”). Both EO 14187 and EO 14168 have faced legal challenges.
