May 21, 2025

CDPAP SFI - Recent Litigation & Legislative Activity

As reported in an issue of the Situation Report last month, a federal judge in the SFI case of Engesser v. DOH Commissioner James McDonald issued a Preliminary Injunction (PI) in favor of the Plaintiffs. The PI was scheduled to expire on June 6; however, yesterday the judge extended the PI until June 20. Terms of the PI will remain in effect until that time. 

On the legislative front, as HCANYS reported earlier, there was no modification to the CDPAP Statewide Fiscal Intermediary (SFI) system in the enacted State Budget, but there are two different proposals that are active in the NYS Legislature that make changes to the SFI process. 



The first bill, S1189 (Rivera) / A.2735 (Stirpe), would repeal the provisions of law relating to the single SFI and replace it with a state licensure requirement for FI’s operating in the state. Yesterday (5/20), this bill advanced out of the Senate Health Committee by unanimous vote and moved to the Senate Finance Committee. Although this is meaningful progress, there are still many other steps in the legislative process that must be met before the bill can be voted on by the full Senate. In the Assembly, the bill has not yet been placed on an Assembly Committee agenda. HCANYS will keep you updated on the developments in both the Senate and Assembly.

The second bill, S7954 (Rivera) / A8355 (Paulin), would keep the current SFI in place but also authorize additional entities to serve as FIs in NYS. This bill is not currently on any Senate or Assembly Committee agenda, but it does continue to pick up additional legislative sponsors. At the time of this alert, the bill has 10 sponsors in the Senate and 19 sponsors in the Assembly.

As legal and legislative developments emerge, please stay tuned to HCANYS for the latest news and information on these items.