Council hearing warns federal cuts will strain city hospitals, push up uninsured rates

The New York City Council convened an oversight hearing on federal funding cuts on July 26, 2025, where council members and health-sector witnesses laid out extensive warnings about the immediate and longer-term effects of the reconciliation bill known in testimony as the "1 Big Beautiful Bill Act" and related federal policy changes.

Council Member Lincoln Ressler opened the hearing by saying the bill was "a disastrous bill for the country and for our city," adding that the measure "provides tax cuts for the rich and takes resources from the most vulnerable." He told the committees the council would press the city and state to plan for the consequences.

Why it matters: Witnesses described a chain reaction that could begin within months — large numbers of people losing coverage, reductions in reimbursements, and higher uncompensated-care costs that will hit safety-net hospitals hardest. Hospital leaders said those losses could force service reductions, layoffs and even closures in facilities that serve low-income neighborhoods.

Key testimony and evidence

- Marla Simpson of the Independent Budget Office told the committees the IBO is preparing a report series called Federal Changes, Local Impacts and said: "Since the passage of the 1…