Hundreds of thousands of New Jersey residents could lose their health coverage if federal spending cuts proposed by Congress move forward, according to a warning issued by the New Jersey Department of Human Services.
Commissioner Sarah Adelman sounded the alarm in a memo posted on the department’s website, saying that the state stands to lose up to $5.2 billion annually in federal funding for NJ FamilyCare, potentially affecting 700,000 beneficiaries.
NJ FamilyCare, the state’s Medicaid program, provides essential health coverage for low-income families, seniors, and individuals with disabilities. The proposed cuts, part of broader spending reductions pushed by President Donald Trump and some congressional Republicans, would put vulnerable residents at risk of losing access to critical medical care, medications, and preventive health services.
“This is not just a budget issue—it’s a public health crisis in the making,” Adelman said in a statement. “If these cuts move forward, hundreds of thousands of New Jerseyans—parents, children, seniors, and people with disabilities—could be left without the coverage they rely on for life-saving care.”
The potential loss of coverage would be felt most acutely by low-income families, who rely on NJ FamilyCare for routine checkups, emergency care, and chronic disease management. Seniors who depend on Medicaid for long-term care and in-home support services would also be at risk, as would individuals with disabilities who require specialized medical assistance.
Healthcare advocates and state officials have expressed deep concerns about the ripple effects these cuts could have on hospitals and healthcare providers across the state. Without Medicaid reimbursements, many hospitals—particularly those in underserved communities—could face financial strain, leading to reductions in services, staff layoffs, or even closures.
The proposed Medicaid reductions are part of a larger debate over federal spending and budget priorities. Trump and Republican lawmakers have advocated for deep cuts to social programs in an effort to reduce the national deficit, while Democrats have pledged to protect Medicaid and other safety-net programs.
New Jersey Governor Phil Murphy has vowed to fight any federal cuts that would harm state residents. “We will not stand idly by while Washington plays politics with the health and well-being of our families,” Murphy said. “Medicaid is a lifeline, and we will do everything in our power to defend it.”
While it remains unclear whether Congress will approve the proposed cuts, New Jersey officials are urging residents to stay informed and advocate for the protection of Medicaid funding. Healthcare advocates have called on Congress to reject the reductions, emphasizing the human cost of slashing healthcare programs.
For now, the fate of NJ FamilyCare—and the health of 700,000 New Jerseyans—hangs in the balance.