SHOCK REPORT: NYS Spends More on Medicaid Than Your Kids

A health care program where illegal immigrants are eligible for gets more taxpayer dollars than your kids' school.

That's according to a new report from NYS Comptroller Tom DiNapoli.

New York taxpayers are now spending more on Medicaid than on educating children in the state’s public schools, a stunning budget milestone that Republicans say exposes Albany’s misplaced priorities and an unsustainable path toward even bigger deficits.

State Senate Minority Leader Rob Ortt didn’t mince words.

“Illegal immigrants can get Medicaid in New York. Albany Democrats now spend more on Medicaid than educating your kids. Think about that. NYS spends more on a program that gives illegal immigrants free health care than it does on your child’s classroom.”

According to State Comptroller Tom DiNapoli’s latest report on the enacted state budget, Medicaid spending will reach approximately $39.4 billion during the 2025-26 fiscal year, accounting for 26.5% of State Operating Funds. School Aid, even after the state fully funded Foundation Aid, totals just over $37 billion, or 24.9% of spending.

The report projects the gap will only widen.

By 2030, Medicaid spending is expected to climb to $53.3 billion, representing 29% of State Operating Funds, while School Aid is projected to increase to $43.7 billion, or 23.8% of spending. If those projections hold, Medicaid will continue outpacing education as one of the state's largest budget commitments.

“The state’s finances remain highly exposed to federal actions and potential economic downturns,” DiNapoli warned.

“While state spending has increased to fund critical programs, most notably healthcare, education and childcare, total reserves have remained flat, which could put these investments at risk in the future. Major national and international developments risk affecting New York’s economy, with downstream impacts on tax revenues and fiscal stability.”

DiNapoli's report also found that the combined share of Medicaid and School Aid is projected to grow from 46.9% of State Operating Funds in 2019 to 52.8% by 2030.

Medicaid alone is expected to account for nearly three out of every 10 state operating dollars by the end of the financial plan, underscoring the program's rapidly growing share of New York's budget.