On June 27, 2025, the state Senate and Assembly budget committees passed another late-night funding bill that increases the state’s structural deficit to about $1.5 billion and reduces cash reserves to nearly $6.8 billion, well below recommended levels to maintain the state’s fiscal health. The bill reduces some of Governor Murphy’s proposed revenue increases, while eliminating other proposals entirely.
In response to the bill, New Jersey Policy Perspective (NJPP) released the following statement.
Nicole Rodriguez, President, NJPP:
“Lawmakers continued to ignore federal revenue cuts coming for Medicaid and food assistance and failed to protect the much-needed cash reserves to help the state protect its residents. While other states build up their savings to help smooth the potentially devastating cuts, the state’s political leadership chose instead to conduct business as usual in Trenton, putting off difficult decisions until later in the year when options will be limited and revenue will be harder to raise.
“Although the budget contains important revenue increases, such as the reformed realty transfer fee, the compromise versions raise less than the governor’s original proposals, without additional revenue to make up for it. Despite countless warnings from state officials, advocacy groups across all issues, and individuals who need programs like Medicaid to survive, this appropriations bill leaves the state poorly prepared to protect its residents from the crisis to come.”
Read more about the effects of federal funding cuts on New Jersey.
Read more about the state agencies that receive federal funding.
