Cruel and Costly House Budget Bill Cuts Health Care for Thousands in New Jersey

On Thursday, May 22, the U.S. House of Representatives passed a sweeping budget bill that includes dramatic cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), eliminates the Child Tax Credit for millions of children, and slashes investments in renewable energy. The bill would have far-reaching and harmful consequences, especially for New Jersey, by shifting more than $3.6 billion in costs from the federal government to the state.

In response, New Jersey Policy Perspective (NJPP) issues the following statement.

Nicole Rodriguez, President, NJPP:

“The numbers in the budget bill approved by the House are hard to fathom: 14 million people will lose health insurance. Three million will be cut off from the food assistance they need to survive.

“But behind each of these numbers is a human life — a child going to bed hungry, a parent skipping cancer treatment, a grandparent unable to afford both medication and food. All so Congress can gift a trillion-dollar tax break to the wealthiest 1 percent. In New Jersey alone, hundreds of thousands of everyday people stand to lose coverage and support.

Let me be clear, this is not fiscal responsibility — this is fiscal sabotage. Our state will be forced to absorb more than $3.6 billion in new costs just to preserve an already threadbare, vital safety net. This bill shifts the greatest burdens onto those with the least, all while padding the bank accounts of the ultra-wealthy.

“Budgets are moral documents — they show who matters and who is left behind. This one sends a chilling message: the House majority values billionaires over hungry children, health care for seniors, and support for people with disabilities.

“This is a cruel and reckless betrayal of the values we share. These are not New Jersey’s values, and they must not be the values of our country.

“Congress must reject this bill. Too many lives are on the line — and so is our future.”

Read more about the effects of federal funding cuts on New Jersey. 

Read more about the state agencies that receive federal funding. 

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House Tax Plan Would Strip Child Tax Credit from 180,000 New Jersey Children, NJPP Warns

On Wednesday May 13, the U.S. House Ways and Means Committee voted to approve tax proposals in the congressional reconciliation bill. One proposed change would deny the Child Tax Credit to children who are U.S. citizens or legal permanent residents if either parent claiming them on their tax return lacks a Social Security Number — even if the child is fully eligible under current law.

In response, New Jersey Policy Perspective (NJPP) issues the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“The House plan to cut off the Child Tax Credit based on a parent’s immigration status is a direct attack on New Jersey families and children. More than 180,000 New Jersey children — 1 in 11 — would lose this critical support, even if they are U.S.-born citizens and their parents are lawful residents.

“This plan doesn’t just punish kids, it undermines one of the country’s most effective tools to reduce child poverty and make life more affordable for families. Denying help to children to pay for tax breaks for the ultra-wealthy is cruel, unjust, and economically short-sighted. Congress must reject this proposal.”

For more information on how Congress could improve the current reconciliation bill and help more working-class families, see the Tax Policy Center’s analysis here.

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Progressive Tax Gains Help, But New Jersey Budget Shortfall Remains

On May 14, the New Jersey State Treasurer reported higher-than-expected revenues, revising the budget projections for the upcoming fiscal year and increasing the state’s projected cash reserves. While the higher than expected tax returns and upward revisions in revenues are a welcome development, the increase is not enough to eliminate the state’s underlying structural deficit, which remains close to $1 billion even after the governor’s proposed revenue increases and spending reductions.

In response, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“New Jersey’s higher-than-expected income tax receipts reinforce what NJPP research has long shown: A robust, progressive income tax code can generate the sustainable revenue needed to fund public goods and services that residents depend on — from strong public schools to reliable transit.

“Although this revised forecast is encouraging, it does not close the gap between what the state collects and what it proposes to spend. A structural budget shortfall of approximately $1 billion remains, and without bolder progressive revenue solutions, New Jersey will draw down its limited surplus and weaken its ability to respond to looming federal cuts to Medicaid, food assistance, and infrastructure, harming hundreds of thousands of people. As the Treasurer and the Office of Legislative Services testified, the state stands to lose billions in federal funding and faces substantial exposure to an economic recession.

“The path forward is clear: Lawmakers must build on the governor’s budget by strengthening progressive revenue measures that ask the wealthiest to pay their fair share. Without doing so, the state will be left with dangerously thin reserves if revenue reductions come to pass. Robust, equitable revenue is the only way to protect essential services and build a more resilient future for all New Jerseyans.”

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House Proposal Would Strip Health Coverage From 200,000 New Jerseyans, NJPP Warns

On Monday, May 12, the U.S. House Energy and Commerce Committee released its plan to cut Medicaid by over $700 billion. Debate on the bill begins Tuesday, May 13 — the next step that would take health insurance coverage away from 8.6 million people. Three members of New Jersey’s congressional delegation sit on the committee: Reps. Frank Pallone (D), Robert Menendez, Jr. (D), and Thomas Kean, Jr. (R).

In response, New Jersey Policy Perspective (NJPP) issues the following statement.

Brittany Holom-Trundy, Senior Policy Analyst, NJPP:

“The House plan to cut Medicaid would strip hundreds of thousands of New Jerseyans of their health insurance and roll back more than a decade of progress in making health care more affordable.

“Whether through block grants, work requirements, or other means, the outcome is the same: 8.6 million Americans would lose their insurance — including nearly 200,000 New Jerseyans, if cuts are distributed evenly across the states.

“These cuts are a direct attack on the health and well-being of families working hard to make ends meet.

“New Jersey cannot afford to reverse its successful, bipartisan Medicaid expansion just to pay for more tax breaks for billionaires and large corporations.”

For more on how proposed Medicaid cuts would harm New Jersey, read NJPP’s March publication on the impact of work requirements.

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NJPP Responds to Arrest of Mayor Ras Baraka

This afternoon, federal agents arrested Newark Mayor Ras J. Baraka outside of Delaney Hall, an Immigration and Customs Enforcement (ICE) facility. Joined by U.S. Representatives Bonnie Watson Coleman, LaMonica McIver, and Robert Menendez Jr., Mayor Baraka was attempting to join a facility tour of Delaney Hall to investigate conditions within the detention center, amid concerns about the treatment of detainees. 

Delaney Hall is operated by the private prison corporation GEOGroup under a long-term federal contract with ICE. The facility reopened earlier this year without securing required local permits, safety inspections, or a certificate of occupancy — actions that city officials argue violate local and state law. In response, New Jersey Policy Perspective (NJPP) releases the following statement.

Nicole Rodriguez, President, NJPP:

“NJPP is profoundly alarmed over Mayor Ras Baraka’s arrest. This incident underscores longstanding concerns about the privatization of immigration enforcement and the dangerous lack of accountability that comes with it.

“Oversight and transparency in public policy — especially when human lives are at stake — should never be met with obstruction or criminalization.

“Decades of research and investigative reporting have shown that privately run detention centers, driven by profit, often cut corners on safety and care, leading to widespread reports of medical neglect, dangerous conditions, and coercive labor practices. Privatization removes key tools for elected officials and communities to ensure accountability and uphold basic standards of care.

“NJPP calls for a full, independent investigation into Mayor Baraka’s arrest and the legal status of Delaney Hall’s operations. No facility should be allowed to operate without full transparency, oversight, and compliance with public safety and health standards. We also urge federal lawmakers to respect New Jersey’s existing ban on private immigration detention facilities.

“As a nonpartisan, research-driven organization, NJPP stands firmly for humane, just, and transparent immigration policies that uphold the dignity and rights of all New Jersey residents.”

Read our statement on Delaney Hall’s opening.

Read more about immigrant detention in New Jersey.

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Immigrant Communities Deserve Real Safety, Not More ICE Detention

In light of recent reporting on Union County’s plan to sell its shuttered county jail — a move that immigrant rights advocates warn could pave the way for a return to U.S. Immigrations and Customs Enforcement (ICE) detention in New Jersey — New Jersey Policy Perspective (NJPP) urges county officials to proceed with transparency, caution, and a firm commitment to human rights.

“New Jersey has come too far to turn back the clock on immigrant justice,” said Nicole Rodriguez, President of New Jersey Policy Perspective. “After years of community organizing and policy wins that severed county ties with ICE, it would be a profound betrayal for any county to welcome back immigrant detention through the back door. We need clear, enforceable safeguards in the sale of the jail to ensure that it can’t be used for immigration detention or profiteering off incarceration.”

Under the first Trump administration, counties like Bergen, Essex, and Hudson profited from contracts with ICE, detaining immigrants in local jails. These decisions were met with fierce opposition from communities and advocates, ultimately leading all three counties to end those contracts by 2021. But with the Trump Administration reinstating mass deportation policies, the risk of rekindling ICE ties is real, especially if infrastructure like the Union County jail is made available to private prison profiteers.

“In this political moment, pretending a former jail won’t be marketed as a detention center is dangerously naïve,” said Marleina Ubel, Senior Policy Analyst at NJPP. “Private prison companies and ICE are actively scouting for detention space. County officials must take active steps to prevent the reestablishment of immigrant detention in our state — not passively hope for a better outcome.”

New Jersey is home to more than 2 million immigrants, who contribute to every facet of our communities and economy. Local governments should invest in programs that expand opportunity and public safety — including legal defense funds, community-based services, and affordable housing — not fueling the incarceration-to-deportation pipeline.

New Jersey’s values — and our laws — demand better. We must not allow the specter of mass deportation to once again warp our public institutions into tools of trauma and family separation.

Eliminating the U.S. Department of Education Would Devastate New Jersey’s Communities

Today, President Donald Trump signed an executive order to direct Education Secretary Linda McMahon to begin taking steps to close the U.S. Department of Education (USED). The executive order’s directive to “ensure the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely” would be impossible without full staffing and funding for the Department’s experts. The Trump Administration’s efforts to weaken or dismantle USED raise legal and policy concerns as only an act of Congress can completely dissolve the Department. In response, New Jersey Policy Perspective (NJPP) released the following statement:

Mark Weber, Special Analyst for Education Policy, NJPP:

“Any weakening of USED would have far-reaching and long-term disastrous effects nationwide and on New Jersey’s communities, especially for children in school districts with historically higher concentrations of poverty. Even if Congress chose to eliminate USED, much of its work would have to be offloaded to other departments or agencies, undermining efforts to improve efficiency and reduce spending.

“This latest executive order is an illegal attempt to realize a far-right goal outlined in Project 2025 — and ultimately, it is the first step toward dismantling public education as a whole. However, New Jersey’s schools are among the best in the nation and its residents are strong believers in public schools and college access. Once again, the president demonstrates he is severely out of touch with the values that make the Garden State great.”

Read NJPP’s latest analysis on the federal administration’s efforts to dismantle USED.

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New Law Preserves Anti-Democratic Ballot Design

Earlier today, Governor Murphy signed into law A5116/S4142, which would modify the design of New Jersey’s primary ballots. The bill is a partial response to a federal judge’s 2024 decision that found most of the state’s previous primary ballots unconstitutional. However, the bill perpetuates harmful visual cues by recreating the previous bracketing system, grouping candidates together based on shared slogans. New Jersey Policy Perspective (NJPP) had joined more than 75 groups in calling for the governor to conditionally veto the bill, but with the governor’s signature today, the bill has become law without modification.

In response, NJPP issues the following statement:

Nicole Rodriguez, President, NJPP: 

“NJPP has long advocated for fair ballots, with research showing the damaging anti-democratic effects of the ‘county line’ and other visual cues on the physical ballot, which steer voters toward certain candidates and away from others. The end of the county line is undoubtedly a monumental achievement by democracy advocates from across the political spectrum. But by continuing these harmful practices, including grouping candidates together in all but name, this compromise represents a missed opportunity for the state to implement the clean office block ballot design, which is standard in almost all other states.”

Read NJPP’s research on the harmful effects of the Line.

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Immigrant Detention Contradicts New Jersey Values and Erodes Public Trust

Late yesterday, U.S. Immigration and Customs Enforcement (ICE) announced plans for the imminent opening of Delaney Hall, a detention facility in Newark, NJ. The facility will have 1,000 beds and a 15-year contract with the private prison company GEO Group, which stands to gain about $1 billion from the contract. In response, New Jersey Policy Perspective (NJPP) releases the following statement:

Nicole Rodriguez, President, NJPP:

“New Jersey Policy Perspective is deeply alarmed by this announcement, just days after Governor Murphy reaffirmed his commitment to protecting the state’s immigrant communities in his budget address. This new contract contradicts New Jersey’s stated values and threatens the well-being of thousands of residents who contribute to the state’s economy, culture, and vitality.

“Decades of research have shown that detention centers — particularly those operated by private corporations — often harm individuals, separate families, and divert public resources toward an industry that profits from mass incarceration. Each new detention facility prolongs a system that has been repeatedly linked to inhumane conditions, a lack of due process, and barriers to legal representation. Further, increasing our reliance on detention undermines the trust that communities have in local government and law enforcement, discouraging immigrants from reporting crimes, seeking medical care, or engaging with public institutions.

“New Jersey should pursue evidence-based solutions that prioritize fairness, the rule of law, and community well-being and safety. This includes ensuring that local and state agencies do not participate in federal immigration enforcement efforts that undermine community trust and public safety while also expanding access to legal and social services that support immigrant families.

“It’s time to work toward ending the reliance on detention centers that have proven time and time again to be sites of abuse and neglect, ensuring that all residents, regardless of immigration status, can live with dignity and security.”

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House Lawmakers Put New Jersey Families At Risk

Last night, the U.S. House of Representatives passed a budget plan that would take away health coverage and nutrition assistance to millions of Americans, including hundreds of thousands of New Jerseyans. The House budget plan also extends over $1 trillion in tax cuts on households with incomes in the top 1 percent. New Jersey representatives Jeff Van Drew, Chris Smith, and Tom Kean, Jr. voted in favor of the House budget plan. In response, New Jersey Policy Perspective (NJPP) issues the following statement:

Peter Chen, Senior Policy Analyst, NJPP:

“No New Jersey family should have to go without health care or food in one of the wealthiest states in the nation. Yet, the House budget resolution passed last night sets the stage for making the state less affordable for the working-class folks who need help the most. Every ‘Yes’ vote was a vote to cut Medicaid, food assistance, and the basic safety net that keeps all New Jerseyans economically secure.

“The numbers are stark: 700,000 people at risk of losing health insurance; 800,000 people at risk of losing food assistance. But beyond the numbers, each of those statistics is a person’s life, someone who is just trying to get by as costs increase. New Jersey’s elected officials must stand up for those people, instead of cutting these services to fund tax cuts to billionaires and giant corporations.”

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