Governor Kathy Hochul today announced nearly $850 million dollars in updated reimbursement rates for non-profit residential and day service providers licensed by the New York State Office for People With Developmental Disabilities. The FY 2025 Enacted Budget, combined with additional federal funding, provided for more than $400 million in new resources to be allocated each year for OPWDD’s service providers. Governor Hochul’s FY 2026 Executive Budget continues this investment and will help to fill critical gaps in this workforce while creating new job opportunities. This investment will enable providers to raise wages for their dedicated staff, ultimately making New York a more affordable place to live and work. Our provider industry has faced challenges, and this bold initiative by Governor Hochul demonstrates a commitment to supporting this sector, its hardworking people and the communities they serve.
“New York’s service providers are providing a critical service to people with developmental disabilities and their families, and they deserve to be paid a fair rate for the services they deliver,” Governor Hochul said. “This rate adjustment is expected to enable a majority of service providers to increase pay to their frontline staff, which would make living in New York more affordable for one of our hardest working, most dedicated and compassionate workforces.”
Rate rebasing is a federally required process where provider reimbursement rates are updated to reflect changes in the actual cost of delivering services. These resources will enable provider agencies to offer higher wages for direct care staff, helping to address staffing vacancies and reduce turnover, which are critical to improving the quality of care for people with disabilities. Additionally, the funding will support other essential costs associated with delivering these vital services…