Potential $10 Billion Medicaid Cut Threatens Coverage for 700,000 New Jerseyans

MORRIS COUNTY, NJ - Governor Phil Murphy convened a roundtable discussion this week at the Westfield Community Center to highlight the devastating effects proposed federal cuts to Medicaid could have on New Jersey families—particularly the 700,000 working-age residents who risk losing their coverage. The talks included personal testimonials from participants living in the 7th Congressional District, which encompasses parts of Morris, Union, Somerset, and Sussex Counties, plus all of Hunterdon and Warren Counties.

Critical Context

• What: Federal-level proposals to slash Medicaid funding could strip the state of an estimated $10 billion in crucial support.

• Who: Governor Murphy, along with Human Services Commissioner Sarah Adelman, Children and Families Commissioner Christine Norbut Beyer, and Health Commissioner Kaitlan Baston, hosted seven New Jerseyans who rely on NJ FamilyCare—the state’s Medicaid program—for health services. Also present was the President and CEO of Children’s Specialized Hospital, a facility that treats over 44,000 patients with special healthcare needs.

• Where: The roundtable took place at Westfield Community Center in Union County, although participants reside in various parts of the 7th Congressional District, including areas of Morris County.

• When: The discussion happened this week as the State faces continued uncertainty over federal budget proposals.

• Why: With the state’s Medicaid program covering 1.8 million individuals—ranging from children and working families to seniors and people with disabilities—officials warn that sweeping cuts would force tough choices in provider payments, potentially shutter local healthcare facilities and undermine public health throughout New Jersey.

• How: NJ FamilyCare operates with a $24 billion annual budget, split between $14 billion in federal funds and $10 billion in State funds. If federal support were reduced, services like doctor visits, mental health care, and long-term assistance for people with complex needs could be curtailed or lost altogether.

“The proposed Medicaid cuts by Congressional leadership are deeply alarming and completely unacceptable. For families across New Jersey, Medicaid is a lifeline offering access to essential medical services and transformational community-based supports,” said Governor Murphy. “Nearly two million of our family members and neighbors rely on federal health care programs like Medicaid. Beneficiaries are seniors, children, individuals with disabilities, and entire families whose access to health care is potentially at risk."

Real-Life Experiences

Participants at the event included caregivers of family members with rare conditions like Antley-Bixler Syndrome, community advocates for adults with intellectual and developmental disabilities, and seniors relying on Medicaid for affordable healthcare. They testified that without Medicaid’s coverage, they would be unable to afford critical medications, residential care, or programs allowing individuals with special needs to live and work in their communities.

“New Jersey's Medicaid program provides vital health coverage for nearly half of New Jersey's children and one-third of births, and provides essential services for working families, seniors, and individuals with disabilities. These potential cuts would take this away from hundreds of thousands of New Jerseyans,” said Sarah Adelman, Commissioner of the Department of Human Services. “I'm deeply grateful to the residents who shared their stories today, stories that powerfully illustrate the simple truth that draconian Medicaid cuts under consideration are not abstract. They will impact our friends, neighbors, and family members. They will disproportionately affect children, new mothers, seniors, people with mental illness, and people with disabilities, while undermining our state's public health infrastructure."

Local Impact

In Morris County—home to Morristown—healthcare providers are bracing for potential fallout. An estimated 1 in 10 New Jersey workers is employed in healthcare, so federal budget cuts might threaten both patient coverage and local jobs. Providers worry about losing reimbursement rates that keep clinics, nursing homes, and supportive housing programs afloat.

“Medicaid makes all of us healthier and safer, and every New Jersey family will be hurt if millions of Medicaid dollars are taken away from us, regardless of whether they’re directly enrolled in this life-saving program,” said Kaitlan Baston, MD, MSc, DFASAM, Commissioner of the Department of Health. “When we talk about Medicaid cuts, we aren’t talking about numbers in a budget document. We’re talking about a program that touches every aspect of public and private health care. Each dollar withheld from New Jerseyans means lost jobs, closed hospitals, price hikes for health services, and more people dying early from preventable diseases."

As lawmakers in Washington, D.C., debate the future of national healthcare funding, Governor Murphy’s Administration continues to emphasize Medicaid’s importance to the state’s most vulnerable populations. Residents interested in learning more or voicing concerns can contact the New Jersey Department of Human Services to understand how possible federal policy changes could affect them.

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