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“Alcohol sales in New York generate $12 billion annually, yet currently contribute nothing directly to address the very problems alcohol can create.”
As one-of-a-kind as New York may seem, January’s federal health cuts and their ripple effects spared no one. Like other lawmakers and treatment providers across the nation, we watched horrified while our federal government slashed nearly $2 billion in health funding overnight, piling on top of the billion-dollar Medicaid cuts and an already-strained workforce. Although the funds had been restored by the following morning, the acute chaos and confusion are indicative of what’s to come.
Albany lawmakers need to be proactive. As has become exceedingly clear, our health system rests on a foundation that can crumble with a single decision made hundreds of miles away. To keep New Yorkers safe, we must ensure New York can withstand any looming federal threats to our health budget. This session, we can do exactly that by passing the SUPER (Substance Use Prevention, Education, and Recovery) Package: expanding the New York State Drug Treatment and Public Education Fund (S8637/A9653), and securing stable funding through the Alcohol Excise Tax (S4595/A9318) and Opioid Excise Tax (S7641/A9311).
As the State Senate chair of the Alcoholism and Substance Use Disorders Committee and the president and CEO of Phoenix House NY’s statewide centers, we know how deeply communities rely on substance use disorder treatment. For individuals in need, the sudden loss of recovery services can mean the difference between life or death. According to recent data from the NYC Department of Mental Health and Hygiene, 207,000 residents actively receive substance use treatment—many of whom faced higher risk of relapse and other dangers when the new cuts threatened programs.
But beyond immediate federal shifts, existing budget shortfalls and rising healthcare costs already prevent thousands of New Yorkers from seeking the support they need most. Up to 90,000 residents report an unmet need for substance use treatment. When health dollars dry up, disparities in care access widen.
The Alcohol Excise Tax and Opioid Excise Tax bills can help prevent gaps in care, whether sudden or longstanding, by establishing a new, sustainable funding stream to support the state’s oversight and regulation of high-risk markets. Alcohol sales in New York generate $12 billion annually, yet currently contribute nothing directly to address the very problems alcohol can create. The respective bills would direct revenue from alcohol and opioid sales to New York State’s Drug Treatment and Public Education Fund, creating a reliable boost for substance use disorder treatment and prevention.
If the bill sounds familiar, that’s because it already exists for marijuana sales. In 2021, New York State passed the landmark Marihuana Regulation and Taxation Act (MRTA), which legalized recreational cannabis and directed 20 percent of its tax revenue to drug treatment and public education. By the end of last year, legal marijuana shops sold nearly $1.5 billion worth of cannabis, driving about $4 million towards vital substance use recovery services for those in need. What’s stopping New York from building on MRTA’s successful pilot and tapping similar tax revenue streams to heal substance use disorders?
Without consistent, reliable funding, programs that offer services to people combatting substance use disorders remain under constant limbo. Operating in the heart of New York City and Long Island, Phoenix House sees new patients battling homelessness, substance use disorders and mental health challenges every day, more than 60 percent of whom already rely on Medicaid.
We’ve seen firsthand what happens when Washington’s policies reach our communities. If the sudden federal program cut remained in place, Phoenix House’s SAMHSA-funded Art of Advocacy program would have been shut down and over 300 active community members would have lost free substance use recovery programming for the foreseeable future. This is just one example out of countless where the uncertainty of funding directly impacts communities in need.
The nearly 3 million New Yorkers struggling with substance use disorders—including children ages 12 and up— deserve better than this uncertainty. Without predictability and long-term security, more community members will find themselves struggling and completely out of options for care. Tens-of-thousands of New Yorkers are already struggling on our streets with untreated substance use disorders. We can’t afford to wait around for the next budget emergency, especially while it’s unclear whether the next one will be here to stay.
As we have seen with the MRTA, dedicated revenue streams work by providing stability for patients and providers. Along with other urgent public health reforms, the Alcohol Excise Tax and Opioid Excise Tax bills offer New York a pathway to deepen our own health safety net. We urge the full Legislature to pass S4595/A9318 and S7641/A9311 this session. Whatever federal storm may come, our communities will only be better off having prepared for it.
Senator Nathalia Fernandez represents the 34th Senate District, covering parts of the Bronx and Westchester. She is the chair of the Alcoholism and Substance Use Disorders Committee and is the Senate sponsor of the Alcohol Excise Tax and Opioid Excise Tax.
Ann-Marie Foster, FACHE is the president & CEO of Phoenix House of New York & Long Island, which offers clinical services, residential and outpatient treatment for people with substance use and co-occurring mental health disorders. She is a member of the New York State Bar Association’s Taskforce on Opioid Addiction.