State lawmakers cast doubt Tuesday that New York's Legislature needs to take action to address the impact of federal spending cuts in President Donald Trump's tax reform law signed earlier this month.

New York's legislative leaders said they don't currently have plans to call a special session in Albany to respond to less aid from Washington. Gov. Kathy Hochul and officials in the state Budget Division have not decided how to fill a $750 million gap this fiscal year from Medicaid changes in the spending plan.

"We are obviously ready to come back should we have to come back, [but] at this moment, that is not what we know right now," Senate Majority Leader Andrea Stewart-Cousins said Tuesday during a virtual press conference about impacts of the bill. "We're willing to come back if we must."

Stewart-Cousins said there's no plans to call lawmakers back to Albany to address cuts in Trump's latest spending package expected to strip 1.5 million New Yorkers of health coverage.

"We're assessing what the rest of this is going to do to us," she added. "We will try to mitigate the pain, but we cannot fill the gaps."

Senate Finance Committee chair Liz Krueger said Tuesday that a special session isn't necessary at the moment. The top Democrat said she expects money from the state's reserve fund will be used to fill a $750 million gap this fiscal year.

"Nothing has to be cut to deal with a $750 million gap; money can be taken from the reserve fund without legislative action," Krueger said in a statement to Spectrum News 1.

The state has about $14 billion remaining in reserves after leaders decided to use $8 billion from the fund in the most recent budget to pay off outstanding unemployment insurance debt.

State Budget Director Blake Washington said the state also projects a $3 billion loss in federal funds next year, on top of an anticipated $7.5 billion budget gap. 

"Congress still has not dealt with its final budget bill, which may make things much worse for New Yorkers," Krueger added. "The next fiscal year budget for New York state may, in fact, have much larger gaps, with the subsequent years even worse because the Medicaid cuts don't really hit until after the 2026 elections."

Washington and Hochul maintain nothing has been decided — especially before Congress negotiates Trump's budget this fall — and they're looking to find savings in the most recent $254 billion state budget.

"Let's look at our agencies, let’s look at our efficiencies," Hochul told reporters in Albany on Friday. "What savings can we find to try to address that shortfall?"

Lawmakers voted in this year's budget to empower Gov. Hochul to make spending adjustments up to $2 billion without legislative input. 

Assembly Finance Committee Chair Gary Pretlow said he expects the governor to use that power if this year's gap stays under the limit.

"She very well could engage the Legislature, but I don't know if she would or not," Pretlow said. "She asked for the authority to do this and she got it."

The nonpartisan fiscal watchdog the Citizens Budget Commission is advising lawmakers against dipping into its rainy day fund, arguing the fund is a non-recurring resource that shouldn't be used to fix a new, recurring problem.

"If you deplete your reserves in pursuit of these federal cuts, you're not solving the federal cut problem, but you are creating a problem for yourself," said Patrick Orecki, CBC's director of state studies. "We're not preparing for the next economic downturn, so we would urge lawmakers not to tap into reserves further." 

Stewart-Cousins, who chairs the Democratic Legislative Campaign Committee, joined Democratic leaders from other states for a virtual event Tuesday to blame Republicans in Congress for the potential impact of the cuts.

"I've got seven congresspeople in New York who said nothing while we are in this mess that they, frankly, helped create," she said. "...Every single one of them voted 'yes.' Not one stood up for their constituents. They all voted 'yes,' they stayed silent, they chose their party over people.”

But congressional Republicans Elise Stefanik and Mike Lawler, who are both eyeing a run for governor, clapped back, arguing Democrats increased state spending by $100 billion in the last decade. 

Lawler argues the state could close the budget gap by eliminating programs that benefit undocumented immigrants, $100 million for public campaign financing and $700 million lost annually to subway fare jumpers. 

Ciro Riccardi, a spokesperson for Lawler, said Democratic leaders in the state shouldn't blame federal reforms for their fiscal failures.

“The One Big Beautiful Bill saved middle- and working-class families from the largest tax increase in history and Congressman Lawler kept his promise, delivering historic relief by raising the SALT cap to $40,000, eliminating taxes on tips and overtime, and introducing a $6,000 senior tax credit," Riccardi said in a statement Tuesday.

And U.S. Rep. Elise Stefanik, who is also considering running for governor, says Democrats are fueling false attacks against Trump's spending bill, which avoided a 22% tax increase, eliminated taxes on tips and overtime pay and increased the child tax credit.

"New York Democrats led by Kathy Hochul have destroyed the state of New York with failed policies leading to the highest taxes in the nation, a bloated out-of-control budget and sanctuary state policies putting illegals first and New Yorkers last," Stefanik's senior advisor Alex DeGrasse said in a statement. "Here are the facts: As the dean of the New York Republican delegation, Congresswoman Stefanik helped lead the successful effort to deliver the largest tax cut for New Yorkers in history by increasing the State and Local Tax deduction cap." 

State Republican leaders said it's unnecessary for the Legislature to return for a special session over the changes in federal spending.

"Federal efforts to clean up waste and inefficiencies, littered amongst social service and health care programs for years, should be a welcome relief for New York taxpayers," Assembly Minority Leader Will Barclay said in a statement. "Democrats had no issue breaking the bank earlier this year...fiscal responsibility in this instance falls on those who have shown little regard for taxpayer dollars in the past."

Senate Minority Leader Rob Ortt said a $750 million Medicaid gap is 0.3% of this year's $254 billion budget — its highest ever.

"They fail to mention that under this governor's mismanagement, Medicaid costs have ballooned a whopping 62% and fraud continues to run rampant by the billions," Ortt said.  

A spokesperson with Gov. Kathy Hochul's office said the impact of these federal cuts are still being evaluated and conversations with the Legislature are ongoing.

Likewise, a spokesperson with Assembly Speaker Carl Heastie said the speaker continues to review the impacts of the federal spending bill with his assemblymembers.