Statement

Despite Modest Revenue Increases, NJ State Budget Leaves Residents Exposed to Federal Cuts

Nearly $1.5 billion deficit and reduced savings leave state unprepared for looming cuts to Medicaid and food assistance programs

By

Published on Jun 27, 2025 in Tax and Budget

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.

Author

  • Nicole Rodriguez, Research Director, is an experienced public policy advocate who researches and advocates for state policy solutions that centers the needs of communities. She is skilled in policy analysis, research, writing, communication, and nonprofit organization and management. Her research interests include labor and economic policy at the intersection of work and family.

    Before joining New Jersey Policy Perspective, Nicole was a Senior Researcher at Community Labor United (CLU), an organization that brings together community and labor partners to speak in one voice on issues that impact working-class families throughout Greater Boston. Specifically, Nicole drove strategic campaigns forward with rigorous research and leadership that stabilize and strengthen low-income families and communities of color.Prior to that, Nicole worked as a Senior Policy Analyst at the Massachusetts Budget and Policy Center, an independent research organization that produces non-partisan policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state’s economy, and enhancing the quality of life in Massachusetts. Nicole has authored numerous reports focusing on family economic security and the state budget.

    She has also worked for foundations, non-profits, and state and local governments in Massachusetts. She holds a Master’s in Public Policy from the Heller School for Social Policy and Management at Brandeis University and a Bachelors of Arts in Political Science from Villanova University.

    Email: rodriguez (at) njpp.org | Phone: 609-393-1145 ext. 18
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