Summary of Bill S. 9963 (2025-2026) — Emergency Appropriation for April 1-22, 2026 (New York)
Purpose and overall effect
- This act provides emergency appropriations to fund state government for a brief period from April 1, 2026 through April 22, 2026, until new appropriation bills submitted by the Governor pursuant to Article VII of the State Constitution for the 2026-27 fiscal year are enacted.
- It amends several prior appropriations laws (Chapters 98, 100, 102 of 2026; with subsequent amendments in Chapter 103 of 2026) to establish temporary funding levels and specific authorized uses during this emergency period.
Key provisions and changes
- General authority and intent
- Section 1: Legislative intent to provide sufficient comptroller authority to make payments during the emergency period until governor-submitted appropriation bills are enacted.
Personal service and executive/legislative payroll (April 1–22, 2026)
- Section 2: For all state departments and agencies, funding to cover personal service payrolls scheduled to be paid during April 1–22, 2026, including state officers and employees of the executive branch and legislators; includes payments for mentally ill or developmentally disabled workers in state-operated programs.
- New total: $1,228,949,722 (replacing prior amount of $835,781,000).
State operations non-personal service liabilities
- Section 3: For state operations liabilities incurred in the ordinary course (April 1–22, 2026) related to 2025-2026 authorized expenditures; preserves existing law and does not supersede current authorities.
- New total: $44,000,000 (replacing $32,000,000).
Miscellaneous appropriations for April 1–22, 2026
- Section 4: Miscellaneous – All state departments and agencies
- Capital projects and contract/grants funding, up to $10,000,000 for liabilities incurred related to contracts/grants approved prior to April 1, 2026, plus up to $10,000,000 for capital project liabilities incurred April 1–22, 2026.
- Section 5: Miscellaneous – All state departments and agencies
- Contracts and grants funding for general miscellaneous purposes: $20,000,000, plus up to $20,000,000 for capital projects liabilities incurred April 1–22, 2026.
- Section 6: General State Charges (Department of Budget project schedule)
- Increases in specific fringe benefits and health-related costs (e.g., health insurance fund, state share of Social Security, dental, vision, etc.).
- Example: General State Charges line item increases from $644,568,500 to $682,068,500; health insurance fund deposits for 2026-27 remain supported.
Judiciary, Department of Health, Education, and other major areas
- Sections 7–9: Temporary adjustments to Judiciary, Education (K-12 aid to localities), and Health
- Judiciary: Increases for personal service payrolls through April 22, 2026; nonpersonal service liabilities funded; aid to localities liabilities funded; employee fringe benefit programs funded ($62,250,000).
- Education (K-12 local aid): Section 8 appropriates $2,283,000,000 for the Office of Prekindergarten through Grade 12 Education Program for remaining obligations and interdepartmental flexibility.
- Department of Health: Major adjustments to Medical Assistance (Medicaid) program funding, with detailed provisions for quarterly assessment and potential Medicaid savings allocation adjustments if projected expenditures exceed limits; includes several program components (e.g., hospital inpatient/outpatient, nursing home, managed care, pharmacy, transportation, dental, etc.), with extensive provisos on federal matching, waivers, and administration.
- The Medicaid portion (Section 9) contains explicit direction for quarterly expenditure assessment, potential reductions and federal waiver actions, reporting requirements, and the ability to reallocate funds across departments to address emergencies, while preserving protections and federal requirements. It also includes provisions for reserves and timing around “fiscal year 2026-27” interactions and supersession of prior year reallocations.
Mental Hygiene / Developmental Disabilities
- Sections 11–12: Transfers and adjustments within the Office for People with Developmental Disabilities (OPWDD), and Community Services Program
- Funding for Community Services Program (developmental disabilities) with netting of refunds and credits; allowances for advances and reimbursements; authority to transfer funds to other agencies with budget director approval; inflationary controls limited to a 2.6% targeted increase from prior year unless otherwise approved; supports housing development, residential/day services, and supports for family care.
- Extensive allowances for day programs, residential services, family support services, housing, and eligible services, including waivers and self-direction.
Department of Veterans’ Services and related
- Section 12: Minor adjustments for Blind Veteran Annuity, Veterans Benefits Advising, and Homeless Veterans services.
Administrative controls and conditions
- Section 13: Expenditure approvals require a budget director certificate, except for expenditures by the Legislature or Judiciary.
- Section 14: Upon final enactment of the Governor’s appropriation bills for FY 2026-27, expenditures and disbursements under this act will be transferred to the enacted appropriations in amounts equal to the charges against the emergency appropriations.
Who is affected
- All state departments and agencies, including:
- Executive branch, Legislative, and Judiciary payrolls
- Department of Health (Medicaid and related health programs)
- Department of Education (AID to Localities for K-12)
- Department of Mental Hygiene, OPWDD, and related health/human-services agencies
- Department of Labor (Unemployment Insurance during disaster-related periods)
- Department of Veterans’ Services and related social services
- Localities and private providers receiving Medicaid-related payments and subsidies
- Hospitals, nursing facilities, managed care organizations, and service providers participating in Medicaid and related health programs
- Agencies involved in capital projects, grants, and miscellaneous state operations
Timeline and procedural notes
- Emergency funding covers April 1–22, 2026.
- The act explicitly contemplates that new general appropriation bills for the 2026-27 fiscal year, submitted by the Governor under Article VII, will supersede these emergency provisions once enacted.
- Budget director approval is required for most reallocations and transfers; legislative chairs must receive notices and reports where relevant.
- Medicaid spending limits can be adjusted quarterly; any adjustments require compliance with federal law and potential waivers, with a structured process and reporting to Senate Finance and Assembly Ways and Means.
Bottom line
- S. 9963 provides a structured, temporary funding package to ensure uninterrupted government operations and specified program payments from April 1–22, 2026, while awaiting enactment of full annual appropriation bills. It includes targeted increases and reallocations across major budgets (healthcare, education, judiciary, labor, mental hygiene, and veterans’ services), with safeguards, reporting requirements, and explicit mechanisms to align with federal programs and future budget actions.
