New Jersey faces $10B Medicaid reduction amid federal budget discussions

New Jersey's budget discussions took a critical turn during the Senate Budget and Appropriations Committee meeting on April 1, 2025, as lawmakers addressed the potential impact of federal funding cuts on the state's Medicaid program. With a staggering $24 billion annual budget for New Jersey Family Care, the committee highlighted that approximately $10 billion of this funding comes from federal sources, which could be at risk due to proposed reductions in Congress.

The committee revealed that New Jersey's Medicaid program serves 1.8 million residents, accounting for over 30% of the state's births and more than half of its nursing home beds. The implications of potential federal cuts could be dire, with estimates suggesting that up to $10 billion in Medicaid funding could be jeopardized. This funding is crucial not only for healthcare services but also for supporting over 10,000 full-time state employees, who are funded through these federal dollars.

As discussions continue, the committee emphasized the need for vigilance regarding federal budget proposals, particularly those targeting Medicaid. The outcome of these discussions could significantly affect the state's healthcare landscape and the welfare of millions of New Jerseyans. The committee's focus on these issues underscores the importance of maintaining robust funding for essential services amid ongoing federal budget negotiations.