DHS warns of multibillion-dollar federal Medicaid, SNAP threat; budget holds targeted investments

Commissioner Sarah Edelman told the Senate Budget and Appropriations Committee on May 6 that New Jersey faces a substantial fiscal risk if Congress adopts proposals to reduce federal Medicaid and SNAP funding. "There is simply no way to achieve such dramatic savings without drastic and painful cuts to New Jersey's Medicaid and SNAP programs," Edelman said, warning the committee the state could face between $2 billion and $10 billion in annual federal Medicaid funding losses under the proposals she reviewed.

The governor's FY26 proposed budget does not assume those cuts, Edelman said, and instead reflects the department's recommended course under current federal law. New Jersey Medicaid is a roughly $24 billion program, she said, with about $14 billion in expected federal support and $10 billion in state share. "Should massive federal funding losses occur during the upcoming fiscal year, it…