Negative Impacts of Tariffs Put One in Four Jobs at Risk in North Country’s Tourism Industry, Disrupts Agriculture and Food Supply Chains

While Governor Hochul Fights To Put More Money Back in Your Pocket, Washington Republicans Want To Cut $13.5 Billion From New York’s Health Care System and Make Life More Expensive for North Country Residents

Federal Cuts Would Cause 44,000 North Country Residents To Lose Health Coverage and Slash Food Assistance for Nearly 90,000 People Across the Region

Governor Kathy Hochul today slammed Washington Republicans for threatening the jobs, small businesses and health care of New Yorkers throughout the North Country. Impacts of federal tariffs and dangerous rhetoric have already harmed 66 percent of regional businesses that rely on Canadian tourism - putting one in four of the industry’s jobs at risk. Washington’s senseless trade war has also threatened the region’s vital agriculture industry, which generates more than 8,600 jobs for local residents and over $1 billion in Gross Regional Product. Meanwhile, the federal budget cuts pushed by Republicans threaten to take away health care for 44,000 North Country residents and slash food assistance for nearly 90,000 people throughout the region – including tens of thousands of children.

“Between insulting our Canadian neighbors and largest trade partners to proposing deep budget cuts that threaten hospitals, food programs and working families, the North Country is being hit from all sides. These actions are doing real harm - putting jobs, care and livelihoods at risk,” Governor Hochul said. “I have said from the beginning, ‘Your family is my fight’ and while Washington is implementing policies that are disastrous for the North Country, we are stepping up to protect our communities, support small businesses and farmers and ensure that the North Country is not forgotten.”

Detrimental Impacts of Trump’s First Five Months

Tariffs and Tourism

Federal tariffs and trade policies as well as negative rhetoric have had an immense impact on the North Country’s economy. Of all New York State counties, the tourism industry is most important to the North Country in terms of employment, generating nearly 20,000 jobs in 2023. Agribusiness provides over 8,600 jobs to the North Country, contributing approximately $1.1 billion to New York State's Gross Regional Product.

• Consumer confidence fell in June due to the rising economic uncertainty from the Trump administration's tariffs. Personal income has dropped by 0.4 percent month-over-month for the first time in nearly four years.
• Cross border crossings from Canada have plummeted since Trump implemented his tariff policies. The most recent data shows that there were 400,000 fewer Canadian visitors in May compared to the same period in 2024.
• Bridge crossings over the Ogdensburg Bridge and the Champlain crossing in May were down 30 percent during that same time period from last year
• April statistics show that border crossings declined nearly 22 percent over the previous year.
• In a recent North Country Chamber of Commerce survey, 66 percent of tourism businesses report a drop in Canadian customers and one in four businesses in the region may cut staff as a result.
• Large department stores and supermarkets are seeing declines of approximately 20 to 25 percent.
• Reservations are down at hotels, campgrounds, local marinas, golf courses and other businesses that rely on visitors from Canada.

“Between insulting our Canadian neighbors and largest trade partners to proposing deep budget cuts that threaten hospitals, food programs and working families, the North Country is being hit from all sides. These actions are doing real harm - putting jobs, care and livelihoods at risk.” - Governor Kathy Hochul

Federal Cuts to Health Care

• The Governor also warned that the proposed federal budget cuts would strip $13.5 billion from New York’s health care system.
• Over 50 percent of Essential Plan funding, exceeding $7.5 billion, would be eliminated, threatening the program’s future.
• These provisions will cause an almost $6 billion impact on New York’s Medicaid program, including $2.5 billion in lost federal revenue and $500 million in new state administrative costs. They eliminate crucial funding mechanisms and impose new penalties on states like New York that have expanded health care access.
• These cuts, combined with cumbersome new administrative hurdles, would cause almost 1.5 million New Yorkers to lose their health coverage and become uninsured, including 44,000 people in the North Country.
• The bill targets Medicaid by imposing stricter work reporting requirements and onerous verification processes, increasing administrative burden and making coverage access more challenging.
• These cuts would threaten the survival of rural hospitals and would lead to longer wait times, reduced services and premium hikes for thousands in the region.
• These impacts will strain New York’s health care system and trigger far-reaching economic effects. The state anticipates a loss of over $3 billion for hospitals due to increases in uncompensated care and decreased reimbursement alone, with many billions more of impacts likely.
• The New York State Department of Health analyzed funding cuts passed by the House of Representatives in the Republican budget reconciliation bill. View the congressional district-by-district breakdown of anticipated funding losses here and the detailed analysis here.

Cuts to the Supplemental Nutrition Assistance Program (SNAP)

• The Republicans also targeted SNAP benefits, threatening the 3 million New Yorkers who rely on them to feed their families. In this district alone, 89,317 people depend on SNAP benefits, with one-third being children.
• The Supplemental Nutrition Assistance Program (SNAP), overseen by the Office of Temporary and Disability Assistance (OTDA) and administered by local departments of social services, helps 1.7 million households and 2.9 million recipients, mostly children, older adults or disabled, afford healthy food. Despite modest benefits averaging $7 per day, SNAP is a vital lifeline for many households. In fact, 14 percent of New York’s population relies on SNAP, making it New York’s most effective tool in combating hunger and food insecurity, core priorities of Governor Hochul’s administration.
• SNAP also supports local economies. USDA research shows that investments in SNAP generate $1.54 in economic activity for every dollar spent by recipients, including at grocery stores, farmers markets, and small businesses. In New York alone, $7.4 billion in SNAP benefits annually generate $11.5 billion in economic activity across the State.

Governor Hochul has prioritized increasing access to food for all New Yorkers, supporting several groundbreaking programs that focus on improving access to locally grown foods including through FY26 Enacted Budget, including the 30 Percent NYS Initiative for school meals, the Farm-to School program, the Farmers’ Market Nutrition Programs, the Urban Farms and Community Gardens Grants Programs, and the Nourish NY program, which helps New York’s network of emergency food providers purchase food from New York farmers to give to families in need.

This year’s Budget also provides $340 million for school meals, a $160 million (89 percent) year-to-year increase, and requires all school districts, charter schools, and nonpublic schools that participate in the national school lunch and breakfast program to provide free breakfast and lunch meals to all students regardless of their families’ income, thereby reducing costs for families and ensuring that no student goes hungry at school. Additionally, the Budget included the third round of funding as part of the Regional School Food Infrastructure Grant Program, which provides $50 million over five years to support regional cooking facilities that will facilitate the use of fresh New York State farm products in meal preparation for K-12 school children.