New York lawmakers propose alcohol tax funding for addiction treatment programs statewide.
New York lawmakers are considering adding alcohol tax as a new way to pay for addiction care at the same time the state is making alcohol easier to buy. Over the past few years, alcohol rules have loosened across the state. Drinks can now be ordered to go from restaurants, alcohol can be shipped directly to homes, movie theaters can sell beer and wine, and lawmakers are still debating whether grocery stores should be allowed to sell alcohol. As access grows, some state leaders say it is time to deal directly with the harm that often follows increased drinking.
State Sen. Nathalia Fernandez has introduced three bills meant to create a steady source of money for substance use treatment, education, and recovery programs. Together, the bills would place a 5 percent tax on retail alcohol sales and move existing opioid tax money into a fund that can only be used for addiction-related services. Fernandez refers to the effort as the SUPER Initiative, short for Substance Use Prevention, Education and Recovery.
The proposal comes during a period of uncertainty for treatment providers. Federal funding for behavioral health programs has been unstable, with repeated attempts in recent months to reduce Medicaid spending tied to addiction and mental health care. Although courts stepped in to block some of those efforts, providers across New York were left unsure whether funding would continue. State leaders say this back-and-forth made it clear that relying too heavily on federal dollars leaves vital services at risk.
Supporters of the bills argue that New York already taxes other industries tied to addiction and uses that money to address related harm. When the state legalized gambling and cannabis, lawmakers set aside portions of the tax revenue for problem gambling programs and substance use treatment. Alcohol, despite being the most widely used substance in the state, does not currently send any of its tax revenue directly into treatment services.
Health data highlights the scale of the issue. Excessive alcohol use is linked to more than 8,000 deaths in New York each year, according to state health officials. Across the country, alcohol plays a role in an estimated 178,000 preventable deaths every year. These numbers include liver disease, alcohol poisoning, accidents, and long-term health problems made worse by drinking. Despite this impact, treatment programs often struggle to meet demand, especially in rural and low-income areas.
One of Fernandez’s bills would redirect money from the existing opioid excise tax into the state’s Drug Treatment and Public Education Fund. That tax was created to hold drug companies accountable for their role in the opioid crisis, but the revenue currently goes into the state’s general budget. Another bill would create the new alcohol excise tax, with all proceeds going into the same fund. The third bill would expand how the fund can be used, allowing support for harm reduction services, recovery centers, peer programs, and growing concerns like gambling addiction.
Experts in addiction policy say dedicated funding matters. When money is placed into a general budget, it can be shifted to cover unrelated expenses during tight budget years. A locked-in fund, by contrast, helps ensure that treatment programs remain open and staff can be paid, even when other areas face cuts. Advocates say this stability can mean the difference between someone getting help quickly or being placed on a long waiting list.
The proposal is not without critics. Alcohol industry groups are expected to push back against a new tax, warning it could hurt sales or small businesses. Others raise concerns about fairness, noting that sales taxes tend to take up a larger share of income for people with lower wages. A 5 percent increase at the register could be felt more sharply by households already struggling to cover basic costs.
Supporters respond that alcohol has become more affordable and easier to access over time, including through delivery services and discount pricing. They argue that the added tax is small compared to the social and medical costs linked to untreated addiction. Lawmakers backing the bills say the goal is not to punish consumers, but to acknowledge that wider access comes with responsibility.
Fernandez plans to push for the bills to be included in the state budget, which is due in early April but often finalized later. As New York continues to expand when and where alcohol can be sold, the debate highlights a larger question facing the state: how to balance convenience and choice with the real human cost of addiction, and who should pay to address it.
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NY lawmakers propose alcohol tax for addiction treatment
New York proposes alcohol, opioid taxes for addiction treatment
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