Governor Kathy Hochul is facing mounting opposition over her proposed overhaul of a popular but costly home care program. Her initiative has restructured the way home care services are administered through Medicaid. However, recently, the program has sparked a fierce backlash, with critics warning that it could put vulnerable New Yorkers at risk.
This led to a controversy that ignited a massive public relations campaign by the Alliance to Protect Home Care, a social welfare nonprofit that has flooded the airwaves with advertisements condemning Hochul’s program. The campaign, which cost $10.6 million last year, ranked as the second-largest lobbying effort in Albany. Yet, a question remains unanswered: who is funding this multimillion-dollar opposition campaign?
The Shadowy Funding
Although the Alliance to Protect Home Care has been the campaign’s public image, its funding sources remain unclear. As noted in lobbying reports, United CDPAP—whose incorporation papers were filed the same day as the Alliance—funded almost 90% of the campaign, or about $10.6 million.
However, United CDPAP’s donor list remains undisclosed, further raising concerns about the legality of this funding structure.
Hochul’s Plan and Industry Pushback
Hochul is pushing to consolidate the $9 billion Consumer Directed Personal Assistance Program (CDPAP), which allows individuals with chronic conditions to hire and pay caregivers through Medicaid. The state currently relies on over 600 fiscal intermediary companies to handle administrative tasks, including payroll and benefits processing.
Arguing that the system is rife with inefficiencies and fraud, Hochul moved to replace these intermediaries with a single statewide provider. She claimed that the change would save taxpayers $500 million annually. After a fast-tracked bidding process, the state awarded the contract to Public Partnerships, LLC (PPL) in September.
The decision sparked immediate backlash. Hundreds of companies excluded from the new system fought back through multiple lawsuits, including one alleging that the bidding process was rigged. Simultaneously, a well-coordinated campaign sought to rally public opinion against the reform.
A Web of Nonprofits and Political Ties
The Alliance to Protect Home Care was officially incorporated on May 30. On the same day, United CDPAP was formed in Delaware and registered in New York a week later. The group’s registered agent is David Lobl, a former aide to Governor Andrew Cuomo and political consultant.
Since then, United CDPAP has donated nearly $10.6 million to the Alliance 32 times, yet its funding sources remain undisclosed. The Alliance’s executive director, Bryan O’Malley, defended the group’s mission but did not clarify why donations were routed through another nonprofit.
“The Alliance to Protect Home Care and its donors are focused on stopping PPL’s train wreck of a transition before it hurts the 280,000 elderly and disabled New Yorkers who depend on this home care program,” O’Malley stated.
Despite these assertions, the lack of transparency surrounding United CDPAP’s finances raises questions about compliance with state lobbying laws. New York law mandates that organizations spending over $15,000 annually on lobbying must disclose donors contributing more than $2,500.
Ethical and Legal Questions Loom
In a previous case, real estate developer Glenwood Management funneled $1 million through a law firm to obscure its role in opposing a marine waste transfer station. A subsequent ethics investigation led to greater scrutiny of lobbying transparency, with regulations explicitly prohibiting donations designed to conceal the true source of funding.
United CDPAP’s official incorporation documents state that its mission is to educate the public on the importance of quality home care and advocate for laws protecting the industry. Yet, the group does not have a publicly available website, nor does it appear in the state attorney general’s charities bureau records.
O’Malley insists that United CDPAP is a properly registered 501(c)(4) nonprofit and has met all necessary reporting requirements. “We’ve been informed that they have followed all the appropriate reporting and disclosures required,” he said.
The Bigger Picture
Beyond United CDPAP’s involvement, the Alliance’s financial disclosures reveal additional contributions from home care companies and trade groups. The NYS Association of Health Care Providers donated $25,000, while individual home care companies contributed as much as $100,000 each. Another $275,000 came from an entity listed as “CDPAP United,” though it remains unclear whether this is the same nonprofit as United CDPAP or a different group entirely.
Adding another layer of intrigue, United CDPAP also engaged in federal lobbying. In late November, the group hired former Congressman Joseph Crowley’s firm, Dentons US LLP, to lobby on healthcare issues, paying $20,000 for the effort.
The Path Ahead
As scrutiny over the Alliance’s funding intensifies, the fight over Hochul’s home care overhaul shows no signs of slowing down. With legal battles ongoing and lobbying efforts ramping up, the outcome will impact 280,000 New Yorkers reliant on CDPAP.
