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Providers and counties urge state action as federal Medicaid and SNAP changes shift costs
Summary
County officials and health and social-service providers told NJDHS that federal policy changes will increase administrative and service costs at the local level, pressing the department to request state funds and targeted grants to preserve access.
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County leaders and multiple provider groups told the Department of Human Services that looming federal changes to SNAP and Medicaid will shift costs and administrative burdens to counties and safety-net providers and requested state-level interventions.
John Donadio of the New Jersey Association of Counties said counties administer SNAP and face an administrative fee shift that could leave counties responsible for an estimated $178 million statewide. "We're concerned that we're either going to have to cut services somewhere, freeze employees, lay off employees, raise taxes," he said, asking DHS to explore grant funding and system upgrades to mitigate the change.
Hospitals and community health centers warned of coverage losses and increased uncompensated care. Marissa Long of the New Jersey Hospital Association cited federal Medicaid reductions and said "as many as 365,000 New Jersey residents could lose coverage under reduced eligibility, new work requirements, and shorter renewal periods." Community health center leaders reiterated that any increase in uninsured patients would increase local costs and pressure clinic operations.
Providers across aging, disability, behavioral health and long-term care sectors urged the state to prioritize Medicaid rate increases, workforce investments and administrative fixes to avoid service reductions. Dr. Carrie Powell of NJPCA warned up to 400,000 may become uninsured given changes to work requirements and marketplace subsidies.
None of the requests produced immediate commitments at the session; speakers asked DHS to reflect these risks in its FY2027 budget submission and to continue partnering with counties and providers on mitigation.

