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Special‑education advocates warn Medicaid cuts would reduce therapy services in schools
Summary
Representatives for school districts and special‑education programs told the Assembly Health Committee that cuts to Medicaid reimbursement would reduce payments to districts under the Special Education Medicaid Initiative (SEMI), threatening therapy hours, support staff and services required by IDEA.
John Mahalon, representing the Association for School Support Agencies (ASSA), told the Assembly Health Committee that New Jersey’s Special Education Medicaid Initiative (SEMI) reimburses school districts for medically necessary services such as speech, occupational therapy, counseling and nursing. He said SEMI has returned significant amounts of funding to school districts in recent years and cautioned that reductions in Medicaid reimbursement would “trickle down” to school budgets and services.
Mahalon emphasized that the SEMI services are not optional: many are required by federal and state law under the Individuals with Disabilities Education Act and ensure Medicaid‑eligible students access their education. He said a cut in Medicaid reimbursement could force districts into “painful choices,” including fewer therapy hours, elimination of support staff, or delays and denials of services that are part of individualized education programs.
The committee received written and oral testimony urging protection of Medicaid funding for the SEMI program and asked for continued coordination between the Health Committee and education stakeholders to understand district‑level fiscal implications.
No committee action or vote occurred at the hearing.
