The federal health minister has revealed 160,000 people are expected to be shifted off the $50 billion scheme under new eligibility rules.
During an address to the National Press Club on Wednesday, Mark Butler said states would have "greater funding responsibility" for the scheme.
Several state leaders said they weren't fully consulted about the changes and didn't want to bear the costs of a federal responsibility.
Western Australia Premier Roger Cook said he supported cost-cutting reform, but didn't want the burden to shift to the states.
"I wish I'd had a briefing, would have been great to see where the NDIS ship is going," the Labor premier said.
"The states have been working with the Commonwealth around reform of the whole NDIS system, taking on more of the foundational supports, ensuring that young people in particular can get the supports they need.
"But it's a Commonwealth program, so we don't want to pay for it."
Queensland Disability Services Minister Amanda Camm said the announcement had come with "little detail and ... little consultation".
"Minister Mark Butler stood up in the National Press Club and outlined the runaway train of which the NDIS has become and, in doing so, simultaneously decoupled the carriages and sent them the states' way," she said.
The Liberal National Party minister accused federal Labor governments of failing to reform the scheme earlier and allowing "shonky individuals" to take advantage.
"It was the federal government that determined disability would be their responsibility," she said.
"It will be our state and other states and territories that will pay for the failures.
"Mr Butler outlined that local support systems need to be rebuilt by states and territories. These systems don't exist and they will come at a great cost to our state to rebuild."
Prior to the announcement, NSW Premier Chris Minns said negotiations were ongoing as to how much more the states would be contributing under the revised model.
"States and the Commonwealth made a decision about disability care over a decade ago - we can do our bit, but it can't be a substitute," he said.
"I've just got to be straight with people, if they're going to go off the NDIS ... we can't provide like-for-like services, and people have got to go into this reform with their eyes wide open."
Tasmanian Premier Jeremy Rockliff said he was yet to be briefed fully on the NDIS changes, but the scheme's integrity relied on support going to those who needed it most.
"The NDIS was set up with very good intent and very good purpose - that purpose must be maintained," the Liberal premier said.
A spokesperson for the Victorian government said they welcome genuine engagement with the Commonwealth government to ensure Victorians with disabilities get the support they need and deserve.
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