More Money in Your Pockets: Rate-Rebasing Will Help Non-Profit Service Providers Offer Competitive Wages for Frontline Staff

Builds on Governor Hochul’s Commitment to Making New York the Most Worker-Friendly State in the Nation

Governor Kathy Hochul on Jan 31st, 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.

Since 2022, the State has made more than $2.8 billion available to OPWDD providers to support investments in the workforce – about $1.4 billion in one-time federally-approved bonuses, nearly $1.1 billion through three consecutive Cost of Living Adjustments (COLAs), including the 2.84 percent COLA included in last year’s budget, and over $340 million through various State-funded bonus initiatives. Cumulatively, more than $3.7 billion will have been made available to OPWDD’s network of non-profit providers, when including the new resources from this unprecedented investment in rates.

Office of the Chief Disability Officer Kim Hill Ridley said, “This investment is a key part of strengthening the disabilities service system and prioritizing wage increases for our direct support workforce who assist New Yorkers with disabilities in their daily lives. Thank you to Governor Hochul for this resource that helps providers to remain competitive while providing the very best support and services.”

Office for People With Developmental Disabilities (OPWDD) Acting Commissioner Willow Baer said, “OPWDD is pleased to be able to release these significant rate adjustments that will help our service providers continue to maintain critical support and recruit and retain talented and qualified frontline staff. I am proud of this important investment and am excited to see this funding passed along to address long-standing concerns and strengthen this vital workforce.”

State Senator Patricia Fahy said, “Investing in our caregivers and direct support workforce that provide critical services and care for New Yorkers living with disabilities is how we address vacancies, retention, and ensure continuation of that care. This funding will allow providers to offer more competitive wages and address staffing challenges, ultimately leading to improved care for New Yorkers living with disabilities and their families. I thank Governor Hochul and Commissioner Baer for recognizing the importance of investing in our frontline workforce, and I look forward to working with my colleagues to further invest in our direct support professional workforce.”

Assemblymember Angelo Santabarbara said, “Direct Support Professionals are the backbone of our care system, providing critical support that allows individuals with developmental disabilities to live with dignity and independence. This investment is a significant step in strengthening disability services, ensuring providers can offer more competitive wages to recruit and retain the dedicated professionals who make a real difference in people’s lives. It helps address workforce shortages and reinforces our commitment to a strong and sustainable care system. I appreciate Governor Hochul’s recognition of this need and commitment to supporting New York’s disability service providers. As the father of a son with a disability, this is an issue I am deeply passionate about, and I remain focused on advancing policies that strengthen these services, ensuring individuals with disabilities and their families have access to the care and support they deserve.”

NY Alliance for Inclusion and Innovation President and CEO Michael Seereiter said, “The NY Alliance and its 135 not-for-profit provider members are extremely grateful to Governor Kathy Hochul and OPWDD Acting Commissioner Willow Baer for this unprecedented investment that will significantly enhance our ability to support the 130,000+ New Yorkers living with intellectual and developmental disabilities (I/DD) and their families who are supported by OPWDD. These resources will give our residential and day services providers the ability to attract and engage direct support, frontline supervisor, and other critical staff positions necessary for providing high quality supports, and address other essential costs associated with these services.”

ARC NY CEO Erik Geizer said, “New York state has made a meaningful and much-needed investment in people with intellectual and developmental disabilities. Years of insufficient investment has driven a crisis in our system that has diminished the quality and availability of essential supports and services. We applaud Governor Hochul and OPWDD for collaborating with providers to better align investment with the current cost of delivering services. These additional resources will help providers better meet the needs of the people we support. We look forward to continuing to work with the state to ensure we honor our commitment to provide high quality, compassionate care for our citizens with special needs.”

CP State CEO and President Mike Alvaro said, “We applaud New York State and the Office for People With Developmental Disabilities (OPWDD) for updating provider rates, marking an important investment in services for people with disabilities. We also appreciate Governor Kathy Hochul and Acting Commissioner Willow Baer for their commitment and efforts to bolster the developmental disability system. This support helps providers strengthen their workforce, meet rising costs, and—most importantly—ensure a high-quality network of care is available statewide for individuals with intellectual and developmental disabilities.”

Winifred Schiff Inter Agency Council CEO said, “We applaud Governor Hochul and Acting Commissioner Willow Baer for their support of the developmental disabilities service sector, their recognition that the cost of providing services has steadily grown while rates lagged far behind, and their appreciation that our front-line staff provide essential, life supporting and affirming services that make life possible for so many New Yorkers. While our work is not done, the recent rate adjustment will go a long way towards compensating for years of stagnant rates and some of the losses experienced by providers during the COVID pandemic, and we trust that Governor Hochul will continue to stand with us so that together, we can achieve adequate wages for our front line work force, and our sector will continue to support New Yorkers with developmental disabilities and their families, far into the future.”

DDAWNY President Mindy Cervoni said, “The Developmental Disabilities Alliance of Western New York (DDAWNY) is deeply grateful to Governor Hochul for her unwavering commitment to New York’s non-profit service providers supporting individuals with developmental disabilities. This transformative funding empowers providers to continue to deliver high-quality services while offering more competitive wages to direct support professionals – the compassionate and skilled individuals who deliver hands-on care and vital support to people with developmental disabilities. By recognizing the invaluable work of these professionals and ensuring they are compensated fairly, this investment strengthens workforce stability and significantly enhances the quality of life for the individuals and families who depend on their care.”