House-Approved Bill Would Cause Millions of Americans to Lose Health Care Coverage, Jeopardize Health Care Providers, and Cost States & Taxpayers Billions
 

LAKEWOOD – Governor Phil Murphy today met with constituents of the Fourth Congressional District of New Jersey whose lives would be negatively impacted by a U.S. House of Representatives-approved bill that cuts more than $700 billion from Medicaid – a federal-state insurance program that provides free or low-cost health care coverage and services to eligible low-income individuals and families, children, pregnant women, the elderly, and people with disabilities.

Joined by Human Services Commissioner Sarah Adelman, Children and Families Commissioner Christine Norbut Beyer, Acting Health Commissioner Jeffrey Brown, and Assemblyman Alexander “Avi” Schnall, the Governor led a roundtable discussion at the Strand Theater in Lakewood with six individuals who reside in New Jersey's Fourth Congressional District – which is comprised of parts of Monmouth and Ocean Counties – who rely on Medicaid to access critical health coverage and services. The Fourth Congressional District of New Jersey is represented by Congressman Chris Smith, who last week voted for legislation to slash Medicaid funding (“The One Big Beautiful Bill Act of 2025,” also known as H.R. 1) along with fellow Republicans in the U.S. House of Representatives. 

NJ FamilyCare, New Jersey’s Medicaid program, provides comprehensive health care coverage to 1.8 million New Jerseyans, including children, working families, older adults, and individuals with disabilities. This is the second roundtable hosted by the Governor to hear directly from those who would be most impacted by the Medicaid cuts being advanced at the federal level. The first roundtable was held on March 28th in Westfield with constituents of New Jersey's Seventh Congressional District.

New Jersey Human Services has modeled how the House-approved bill will impact New Jersey:

• 1 in 5 New Jerseyans currently covered by NJ FamilyCare would lose health care coverage under the plan – that’s about 350,000 individuals, including half of residents covered by Medicaid expansion allowed by the Affordable Care Act.
• Their plan would force policymakers to make an inhumane choice between taking fully state-funded health care away from 46,890 children by kicking them out of NJ FamilyCare coverage or making the State pay a $700 million annual federal penalty that will take money out of our health care system.
• New Jersey would receive an estimated $3.6 billion less in annual federal Medicaid funding, including cutting about $300 million in federal funds for hospitals at a time when uncompensated care costs for hospitals for uninsured individuals will soar.
• New Jersey could lose $12 million annually to women’s health and family planning providers, which is about a third of their operating budget.

“Medicaid is a critical lifeline that has enabled millions of New Jerseyans to access everything from annual check-ups to lifesaving health care to supportive services for complex medical needs. The House Republicans' disastrous budget bill would rip away this lifeline, leaving hundreds of thousands of our residents without health coverage. This bill represents a profound betrayal of New Jersey’s working families,” said Governor Phil Murphy. “There are real-life consequences to the provisions of this bill, and they will have the biggest impact on families that are already struggling. It is shameful that Representative Chris Smith – along with his fellow Republican members of New Jersey’s Congressional Delegation, Tom Kean Jr. and Jeff Van Drew – put party over people and voted in favor of cutting Medicaid funding. These elected officials bear the responsibility for the harm this bill will create in communities across our state. Our Administration will continue to do everything in our power to preserve funding and protect access to care, and we call on the Senate to fight back against these harmful cuts.”

NJ FamilyCare has an annual budget of $24 billion. The cost is shared between the State and the federal government, 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, elimination of federal support for programs, or eligibility restrictions — would jeopardize access to care, create difficult choices in provider payments, force hospitals and health care providers to shut their doors, and undermine the state's public health system. These barriers to accessing health care can lead to delays in receiving critical diagnoses and treatments, resulting in poor health outcomes for patients.

“The debate around the House of Representatives’ bill has been confusing and full of false rhetoric,” said Human Services Commissioner Sarah Adelman. “As the person who oversees Medicaid in New Jersey, I want to be clear and honest about what it does: it cuts Medicaid coverage for hundreds of thousands of New Jerseyans who will be left uninsured. It cuts billions of dollars in vital public health funding. It forces states to create bureaucratic steps and lengthens timeframes for people to be approved for Medicaid. It punishes New Jersey for providing health care to all children. And it will unequivocally add to the cost of our health care system. The bill has passed the House but not the Senate, so we must continue our work to protect Medicaid for all of the people whose lives and health depend on it.”

“The Medicaid cuts and reductions in the social safety net reflected within the House budget reconciliation bill put states like New Jersey in an impossible situation where services will be slashed and New Jersey families will experience increased instability and uncertainty over their future,” said Children and Families Commissioner Christine Norbut Beyer. “These reductions will affect everything from youth mental health services to foster care and adoption subsidies to investigations of child abuse and neglect. We strongly urge the Senate to reject the current House budget reconciliation bill, and stand up for families in need – in New Jersey and around the nation.”

"When the Medicaid program is cut, the two groups that feel it most acutely are patients and providers. Patients lose coverage and lose options for accessing care, and providers see lower reimbursement causing less doctors and nurses to participate,” said Acting Health Commissioner Jeff Brown. “The cuts being proposed by Congress do nothing to improve quality. Instead, they will place onerous paperwork requirements on Medicaid beneficiaries, increase the number of uninsured individuals, and destabilize our safety net health care system. And this will impact access to quality, comprehensive care for adults, pregnant women, children, families, and people with disabilities.”

“These proposed federal cuts to Medicaid put the health and well-being of New Jersey families, children, seniors, and individuals with disabilities at serious risk,” said Assemblyman Avi Schnall. “Statewide, nearly two million New Jerseyans rely on NJ Family Care/Medicaid for health services. The proposed federal cuts to Medicaid would severely limit New Jerseyans’ abilities to access the care that they deserve and are, quite simply, unacceptable. We must work together to protect access to quality care and ensure that our communities continue to receive the support they deserve.”

Health care services provided by NJ FamilyCare include doctor visits, eyeglasses, hospitalization, lab tests, X-rays, prescriptions, regular check-ups, mental health, dental, preventive screenings, autism services, community doula services, and help with personal care needs. These services may include both health care and long-term care services that enable people with complex needs to live fully in the community in their own homes, or in a facility relying on 24/7 nursing and medical attention. Some services are designed to help individuals with disabilities live safely and independently in the community through direct support professionals, day habilitation programs, supported employment, behavioral supports, and more.

The event featured testimonials from the following constituents of the Fourth Congressional District of New Jersey:

Andrew McGeady (Jackson, NJ): Andrew is an adult who experiences severe cerebral palsy and respiratory issues. He relies on Medicaid for staffing, medical equipment such as wheelchairs, and accessible vehicle modifications, as well as medical visits, therapy, and Medicare premiums B & D.

Lauren Williams (Jackson, NJ): Lauren’s teenage daughter, Carah, receives services and lives in a residential group home through New Jersey’s Children’s System of Care. Medicaid has enabled Carah to access critical care and mental health services.

Noah Burton (Lakewood, NJ): Noah is a proud parent of five children ranging from 20 to 30 years old, two of whom, Samuel (28) and Aaron (20), have Aicardi-Goutières Syndrome (AGS), a rare and complex medical condition. Samuel, who has a more severe form of AGS, is quadriplegic, wheelchair-bound, tube fed, and experiences multiple related medical conditions. He lives at home and attends a day program during the week. Samuel relies on Medicaid for health coverage and to help access important services.

Laura Williams (Point Pleasant, NJ): Laura is the mother of a teenage son, Chris, who has intellectual and developmental disabilities. Chris currently resides in a residential group home where he receives Medicaid-funded supports and services.

Louis Bonilla (Brick, NJ): Louis is an older adult and resident of Complete Care at Laurelton. Medicaid allows him to access affordable health care.

Vanesa Nieto (Lakewood, NJ): Vanesa is a mother of three with a fourth baby on the way. She and her family have been covered through Medicaid for two years, and having access to this health coverage has enabled her and her kids to stay healthy.