Gov. Murphy holds roundtable discussion with Medicaid recipients as Congress debates significant cuts to program

NEW JERSEY – Governor Phil Murphy met with constituents whose lives could be negatively impacted by potential federal funding cuts to Medicaid, a federal-state insurance program that provides free or low-cost health care coverage to eligible low-income individuals and families, including children, pregnant women, the elderly, and people with disabilities.

Joined by Human Services Commissioner Sarah Adelman, Children and Families Commissioner Christine Norbut Beyer, and Health Commissioner Kaitlan Baston, the Governor led a roundtable discussion at the Westfield Community Center with seven individuals from New Jersey’s 7th Congressional District. This district includes parts of Union, Somerset, Morris, and Sussex Counties, and all of Hunterdon and Warren Counties. These individuals rely on NJ FamilyCare to access critical health coverage and services. Also present was the President and CEO of Children’s Specialized Hospital, who spoke about the broad impact of Medicaid on those served by the hospital.

NJ FamilyCare provides comprehensive health care coverage to 1.8 million New Jerseyans, including children, working families, older adults, and individuals with disabilities. The roundtable discussion offered an opportunity to hear directly from those who would be most affected by proposed Medicaid cuts at the federal level.

The New Jersey Department of Human Services has modeled the impact of proposals put forward by Congressional leadership. These potential changes to Medicaid could significantly reduce access to health insurance through eligibility changes or procedural barriers. Additionally, they could affect provider pay, impacting New Jersey’s health care sector, which employs over 1 in 10 residents. The state could lose as much as $10 billion in funding, and 700,000 working-age Medicaid enrollees may lose their health insurance coverage.

“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 at risk. My Administration has remained committed to supporting New Jerseyans who depend on Medicaid, and we are calling on all members of our Congressional delegation – on both sides of the aisle – to step up and do the same.”

NJ FamilyCare has an annual budget of $24 billion, with $14 billion in federal funds and $10 billion in state funds. Governor Murphy has continued this commitment in his Administration’s Fiscal Year 2026 budget proposal. However, reductions in federal funding—whether through cuts to matching rates, the elimination of federal support for programs, or eligibility restrictions—could jeopardize access to care, create difficult choices in provider payments, force hospitals and healthcare providers to shut their doors, and undermine the state’s public health system.

“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,” said Sarah Adelman, Commissioner of the Department of Human Services. “These potential cuts would take this away from hundreds of thousands of New Jerseyans. We remain committed to doing everything possible to protect access to health care, but Congress must uphold their commitment to New Jersey families and protect this critical program.”

“DCF, like many state agencies, relies heavily on direct and indirect federal funds to support a variety of crucial prevention, intervention, and treatment programs for the children, individuals, and families we serve,” said Christine Norbut Beyer, Commissioner for the Department of Children and Families. “The proposed cuts to federal funding would mean significant cuts to children’s mental health services, threatening to collapse the Children’s System of Care at a time when demand for services is at its highest.”

“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, Commissioner of the Department of Health.

The event also featured several individuals who rely on Medicaid for essential services, such as Dr. Matthew B. McDonald III, President and CEO of Children’s Specialized Hospital, and caregivers like Shaaina Nasser, whose daughter requires specialized care.