In a continuing escalation of controversy, the $11 billion “Consumer Directed Personal Assistance Program” (CDPAP) in New York State is facing scrutiny. State Senators Jim Skoufis and Gustavo Rivera have accused Governor Hochul of retaliating against them for pushing investigations into the bidding process of the program, even resorting to vetoing bills as a means of sparking a political storm.
According to reports from the New York Post and NY1, several bills proposed by Senator Skoufis were vetoed by the Governor last week. Skoufis bluntly stated that this is not a policy dispute but Hochul’s “retaliatory behavior”: “The Governor wants me to suppress key information about the CDPAP investigation, this is blatant political pressure. I will not back down.”
The CDPAP program costs over $11 billion annually, providing assistance to tens of thousands of long-term care residents in New York State. This year, the state government delegated major management authority to the outsourcing company “Public Partnerships, LLC” (PPL). However, legislators suspect that the Hochul administration had already “pre-selected” the company to take over.
The Times Union pointed out that at an August Senate hearing, testimonies from the Department of Health (DOH) and PPL raised doubts. Some witnesses admitted that previous denials of contact with the Hochul administration were “false”.
Subsequently, Senators Skoufis and Rivera formally requested documents from Health Department Director James McDonald and PPL CEO Miki Kapoor, asking for emails, meeting records, financial data, and actual service performance of the bidding case. Both legislators emphasized that their investigation will continue, not ruling out the use of subpoena power.
Hochul’s spokesperson, Sam Spokony, counter-argued that these legislators are “fixated on attacking the Governor” when Hochul has actually been “saving the CDPAP from financial crisis, ensuring home care continuity, and saving hundreds of millions of dollars for taxpayers”; and that the Governor’s veto of their proposals is normal, “Governor Hochul evaluates all legislation based on the merits of the law”.
Health Department Director James McDonald insisted that the contract with PPL was signed in a “legal and compliant” manner. PPL stated they would cooperate with the investigation but have admitted that misleading testimonies were provided during the hearing.
Earlier reports from New York Focus revealed a significant lack of transparency in lobbying activities and decision-making processes, raising questions about whether the state government had a preconceived intention to favour specific contractors.
In addition to state-level investigations, federal intervention has also begun. The House Oversight Committee has launched an investigation into the flow of medical assistance funds in New York State, focusing on potential misuse of funds or rigged bidding processes.
Currently, the investigation is ongoing. State Senators have pledged to “get to the bottom” of this, until the Hochul administration’s role and responsibility in the CDPAP bidding process are thoroughly clarified. Hochul, on the other hand, emphasizes that the reform can “stabilize the system, protect patients, and save expenses,” while denying any misconduct.
This case not only concerns the integrity of the state government but also affects the vital interests of thousands of patients and home care workers, and its developments will have a profound impact on the New York medical assistance system and the state political landscape.