Governor Kathy Hochul has announced an $850 million investment to update reimbursement rates for non-profit residential and day service providers licensed by the New York State Office for People With Developmental Disabilities. This funding, made possible through the FY 2025 Enacted Budget and additional federal resources, will provide over $400 million annually to help providers increase wages for direct care workers and improve services for individuals with disabilities. The FY 2026 Executive Budget continues this commitment, ensuring stability for the workforce and expanding job opportunities.
This initiative comes as part of a broader effort to address longstanding challenges in the disability service sector. Rate rebasing, a federally required adjustment process, will allow providers to better reflect the true cost of care, enabling them to recruit and retain skilled staff while maintaining high-quality support for individuals with developmental disabilities. By prioritizing fair wages and operational support, the investment makes New York a more affordable place to live and work for those dedicated to disability care.
Since 2022, New York has allocated more than $2.8 billion to support OPWDD providers, including one-time federal bonuses, cost-of-living adjustments, and state-funded incentives. With this latest funding, total investments in the sector will exceed $3.7 billion, demonstrating the state’s commitment to strengthening disability services.
Officials and advocates have praised the initiative, recognizing it as a vital step toward stabilizing the workforce and ensuring individuals with disabilities receive the support they need. The funding will help providers offer more competitive wages, address staffing shortages, and maintain critical services across the state.
Governor Hochul’s investment underscores her administration’s ongoing efforts to create a worker-friendly environment in New York, particularly for those providing essential care. By prioritizing fair compensation and sustainable funding, the state is reinforcing its commitment to both service providers and the individuals who rely on them.
