Providers serving people with developmental disabilities through New York's OPWDD will get a 2.7% targeted inflationary increase, effective April 1, 2026, with no restrictions on how it is spent. The increase is in the state's fiscal 2027 budget, which lawmakers passed almost two months late and Gov. Kathy Hochul signed on May 28. The Cerebral Palsy Associations of New York State summarized the budget on May 29.
What the budget includes
Nonprofit providers of services through the Office for People With Developmental Disabilities (OPWDD) get a 2.7% targeted inflationary increase, effective April 1, 2026. That is up from the 1.7% Hochul first proposed and matches what advocates asked for, though both legislative houses had backed 4%. Unlike in 2024, the increase comes without spending restrictions, and care coordination organizations are again left out. The budget also adds $30 million in state funds ($60 million annualized) for new service opportunities, a 5% family care rate increase, $15 million for independent living housing and $39.3 million to support minimum wage increases at OPWDD-licensed programs.
Why this matters for providers and DSPs
The increase gives New York agencies room to raise wages as federal Medicaid cuts approach. Because it carries no spending restrictions this year, providers will decide how much goes to DSP pay.