Treasurer Elizabeth Marmello presents FY2026 budget, warns of possible $10 billion Medicaid hit

Treasurer Elizabeth Marmello presented Governor Phil Murphy's proposed fiscal year 2026 budget to the New Jersey Senate Budget Committee, saying the administration is proposing $58.05 billion in appropriations and projecting $56.8 billion in state revenues while holding a $6.3 billion surplus.

Marmello, who told the committee this is her ninth and final budget as state treasurer, warned that proposed federal changes to Medicaid ‘‘could reduce funding to the state by nearly $10 billion and endanger health care for some 700,000 New Jerseyans.’’ She also said New Jersey Family Care covers roughly 1.8 million residents and that the state draws down tens of billions in federal program funds that are vulnerable to changes in Washington.

The governor’s proposal would continue several priorities Marmello highlighted: a record $12.1 billion for K–12 state aid, a proposed $1.27 billion for preschool aid, and a proposed $7.2 billion actuarially determined pension payment for FY2026 — the fifth consecutive full actuarial contribution, the treasurer said. The budget also proposes $4.3 billion in direct property tax relief, including $2.4 billion for the Anchor program, $239 million for the Senior Freeze program and $600 million for the Stay NJ program.…