Category: Blog

Holistic Public Defense Would Make New Jersey Safer and Save Millions

Posted on by Marleina Ubel

New Jersey can lead the nation by making its public defense system a driver of community safety, equity, and economic stability. The key is to address the root causes that pull people into the legal system. And it would take only a modest investment with generous returns. Expanding the New Jersey Office of the Public Defender’s (NJ OPD) holistic defense program across all 21 counties, and writing it into law, would save New Jersey taxpayers at least $12.7 million a year in the long term, based on estimates from NJ OPD and the Office of Legislative Services.[1]

Moving from “Case-Centered” to “Person-Centered”

Holistic defense is a team-based public defense model that pairs defense attorneys with licensed social workers, peer system navigators (individuals with lived experience who can act as guides), and community-based service providers.[2] Traditional public defense focuses only on the outcome in court. It leaves the crises in a client’s life unaddressed. Holistic defense looks at the whole person. Holistic defense teams build tailored support plans that connect people to essential resources such as stable housing, mental health care, addiction treatment, and job training.[3]

Public defenders are attorneys who represent people who cannot afford a lawyer. They hold a unique position to address root causes of legal system involvement. Public defenders represent about 90 percent of defendants in New Jersey.[4] That means most people facing charges in the state have limited resources. Defense teams are also bound by attorney-client privilege, so they meet clients at a moment of crisis in a setting built on trust.

New Jersey has already shown this approach works. NJ OPD ran recent pilot programs in Atlantic, Monmouth, and Hudson counties with local community organizations. Pilot sites achieved a 442 percent increase in overall connections to social services, and 80 percent of clients who needed work were successfully connected to workforce or job-training programs.[5] In a random sample of just 90 cases, or 10 percent of the pilot, NJ OPD estimates the program avoided $1.4 million in incarceration costs.[6]

Better Individual Outcomes = Safer, Stronger, and More Equitable Communities

Holistic defense tackles the interconnected cycles of poverty, systemic inequity, and legal system involvement. Incarceration and poverty reinforce one another. The legal system disproportionately targets people with low incomes, and detention deepens economic hardship for families.[7] This means reducing incarceration, sentence length, and repeat arrests also ripple outward, contributing to economic stability, stronger families, and racial equity.[8]

The safest communities are not those with the most police or the largest prisons. Communities thrive when people have access to quality education, safe housing, health care, and green spaces.[9] This is also true for each person. People with more resources are less likely to reoffend. In Philadelphia, the public defender’s office added bail advocates to its defense teams to help attorneys argue for a client’s release before trial. Clients with bail advocates were 64 percent less likely to violate the terms of their release and 26 percent less likely to be rearrested.[10] An estimated 65,000 children in New Jersey have had an incarcerated parent. Keeping people out of jail with programs like this helps prevent family separation and the harms that follow.[11]

The Philadelphia bail advocates also reduced racial inequities in pretrial detention.[12] This matters in New Jersey, where pretrial detention disproportionately harms Black New Jerseyans. In 2024, Black New Jerseyans made up 56 percent of people in pretrial detention but only 15 percent of the state’s population.[13] This is vital in a state where systemic racism has ravaged communities and where the Black-white disparity in incarceration is the highest in the country.[14]

Holistic Defense is Fiscally Responsible

Incarceration is expensive. And locking people up without addressing their underlying needs creates a costly revolving door for state and county budgets. It should come as no surprise, then, that reducing the number of people detained or under state supervision saves money. Not to mention, when a person can stay in their community and work, they can contribute economically.[15]

It costs about $78,000 a year to hold one person in a New Jersey state prison and approximately $83,000 per year to hold one individual in a county jail, according to the New Jersey Department of Corrections and the Administrative Office of the Courts.[16] The Office of Legislative Services estimates that expanding holistic defense statewide would cost $9.8 million in the first year. NJ OPD estimates the program would avoid $22.5 million a year in incarceration costs by preventing unnecessary jail and prison time before and after trial. That would leave the state at least $12.7 million ahead each year.[17]

Holistic defense has saved money in other places too:[18]

  • Kentucky Department of Public Advocacy: Estimated $68.6 million in potential first-year state savings by assigning licensed social workers and alternative sentencing workers to public defender teams.[19]
  • The Bronx Defenders: Saved New York taxpayers an estimated $165 million by cutting clients’ time behind bars, according to a 10-year study.[20]
  • Santa Barbara County: Integrating social work and bail advocacy into defense teams generated $250,000 in annual taxpayer savings.[21]

 

People-Centered Policy is Good Governance

Lasting public safety requires moving beyond punitive cycles and investing in structural solutions that help people build stable lives. Not every social crisis requires a punitive legal response. Often, connecting people to treatment, housing, and job training is the most effective way to ensure safety for everyone. Holistic defense is a crucial step in this direction, and state lawmakers should fully fund the program in all 21 New Jersey counties. With dedicated, sustainable funding for social workers, peer navigators, and community-based partnerships, New Jersey will become a national leader in criminal legal reform, building safer, stronger, and more equitable communities statewide.

End Notes
[1] New Jersey Office of Legislative Services. Fiscal note for A4897/S4298. Aug. 2026.
[2] New Jersey Office of the Public Defender. Holistic representation. State of New Jersey. Accessed Oct. 2026.
[3] New Jersey Office of the Public Defender. Holistic representation. State of New Jersey. Accessed Oct. 2026.
[4] New Jersey Criminal Sentencing & Disposition Commission. March 2023 Report. Mar. 2023. Pg. 18.
[5] New Jersey Office of the Public Defender. Holistic representation. State of New Jersey. Accessed Oct. 2026.
[6] New Jersey Office of the Public Defender. Data on file with the author.
[7] deVuono-powell, S. et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center. Sep. 2015. Pg. 9.
[8] Heaton, P. Enhanced Public Defense Improves Pretrial Outcomes and Reduces Racial Disparities, Indiana Law Journal: Vol. 96: Iss. 3, Article 2. 2021. Pg. 2.
[9] Ubel, M. To Protect and Serve: Investing in Public Safety Beyond Policing. New Jersey Policy Perspective. 2021.
[10] Heaton, P. Enhanced Public Defense Improves Pretrial Outcomes and Reduces Racial Disparities, Indiana Law Journal: Vol. 96: Iss. 3, Article 2. 2021. Pg. 2.
[11] Annie E. Casey Foundation. A Shared Sentence: The Devastating Toll of Parental Incarceration on Kids, Families and Communities. 2016. Pg 7.
[12] Heaton, P. Enhanced Public Defense Improves Pretrial Outcomes and Reduces Racial Disparities, Indiana Law Journal: Vol. 96: Iss. 3, Article 2. 2021. Pg. 2.
[13] New Jersey Administrative Office of the Courts. Report to the Governor and Legislature on Criminal Justice Reform 2022-2024. Pg. 31.
[14] Nellis, A. The Color of Justice: Racial and Ethnic Disparity in State Prisons. The Sentencing Project. Oct. 2021. Pg. 10.
[15] Butkovitz, A. Economic impacts of cash bail on the City of Philadelphia: An analysis of the direct and indirect impacts of cash bail. City of Philadelphia, Office of the Controller. Oct. 2017. Pg. 6.
[16] New Jersey Department of Corrections. Response to FY27 budget hearing questions. 2026. Pg. 8; New Jersey Office of Legislative Services. Fiscal note for S1280. Aug. 2026.
[17] New Jersey Office of Legislative Services. Fiscal note for A4897/S4298. Aug. 2026. Note that the Office of Legislative Services predicts an initial investment of $9.8 million.
[18] Anderson, J., Buenaventura, M. and Heaton, P. The Effects of Holistic Defense on Criminal Justice Outcomes. Nov. 2018. Pg. 2.; Kentucky Department of Public Advocacy. Annual Report: Fiscal Year 2024. 2024. Pg. 7.; Garcia, B. Defending Santa Barbara’s Most Vulnerable. Santa Barbara Independent. Jul. 2019.
[19] Kentucky Department of Public Advocacy. Annual Report: Fiscal Year 2024. 2024. Pg. 7.
[20]  Anderson, J., Buenaventura, M. and Heaton, P. The Effects of Holistic Defense on Criminal Justice Outcomes. Nov. 2018. Pg. 2
[21] Garcia, B. Defending Santa Barbara’s Most Vulnerable, Santa Barbara Independent. Jul. 2019.

Meals as Fuel: Federal Cuts Put Free School Lunch at Risk for New Jersey Kids

Posted on by Tonanziht Aguas

Every student deserves the nourishment that helps them show up ready to learn each day. National School Lunch Week is a reminder that school meals keep students focused, healthy, and engaged in the classroom. But recent federal changes to key safety net programs could put free and reduced-price meals at risk for nearly 457,000 students.

Many families have never needed to apply for free and reduced-price school lunch under the National School Lunch Program. Their children are enrolled automatically because the family takes part in a qualifying safety net program. H.R. 1, the federal tax and spending law signed in July 2025, puts that automatic bridge to school meals at risk.

Local schools and districts use lists from the state that show which students are enrolled in programs such as the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Medicaid. Those students are automatically signed up for free or reduced-price school meals, a process called direct certification. When a family loses SNAP or Medicaid benefits, the child can drop out of automatic enrollment, and the family must then apply on their own. Some families miss that step or don’t realize it’s needed. Their child may end up paying full price at the lunch line next school year, even though they still qualify.

H.R. 1 expanded SNAP work requirements to adults through age 64 and to parents whose youngest child is 14 or older. It also created Medicaid work requirements, made adults renew coverage more often, and cut eligibility for some immigrants. As a result, fewer families will get the food and health coverage they rely on. SNAP participation in New Jersey has already fallen by more than 53,000 people, including more than 21,000 children. Many New Jerseyans face the risk of losing health coverage when federal Medicaid work requirements take effect. People are already losing coverage in Nebraska, which started its work requirements early.

Although children aren’t directly subject to these rules, they can lose benefits when their family does. Picture a family that has recently lost SNAP benefits because of new work requirements. Their child still qualifies for school meals but is no longer automatically enrolled. Unless a parent knows about the application, that child could go without lunch or pay a price.

New Jersey children rely heavily on direct certification. Out of nearly 689,000 New Jersey students eligible for free and reduced-price meals, almost 457,000 are directly certified through programs such as SNAP, Medicaid, and TANF.

The risks from H.R. 1 extend beyond individual families. The federal Community Eligibility Provision lets schools and districts serve free meals to every student. To qualify, at least 25 percent of a school’s students must be directly certified or automatically eligible in another way. In the 2024-25 school year, 343 New Jersey schools used community eligibility. If enough students lose direct certification, a school could fall below 25 percent and stop offering free meals to everyone.

New Jersey has already taken first steps. In June, Gov. Mikie Sherrill signed a law requiring public schools to post the school meal application on their websites. This week, Assembly Speaker Coughlin proposed a bill that would require public school districts to provide free school breakfast for every enrolled student. State leaders should build on these steps and find new ways to keep students enrolled when their families lose automatic eligibility.

School meals fuel learning. No eligible child should miss a meal because of paperwork.

NJ FamilyCare 101: How Medicaid Works in New Jersey

Posted on by Jennifer Spiegel

Every New Jerseyan deserves affordable health care so they can stay healthy, care for their families, and contribute to their communities. But Medicaid is one of the state’s largest public programs, and too many people face barriers to getting the care they need. The program is too often undermined by funding cuts and red tape that cause eligible residents to lose coverage. Protecting and strengthening Medicaid keeps care within reach for the residents who need it most and supports public health infrastructure across the state. As federal cuts threaten access to care, New Jersey leaders must prioritize Medicaid so residents can get the health care they need to thrive.

This explainer breaks down how New Jersey runs its Medicaid program and why it matters for health coverage in the state. It also lays out the state and federal policy changes that will shape the program’s future.

In This Explainer
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    What is Medicaid?

    Medicaid is a public health insurance program that covers people and families with low incomes. It serves a wide range of groups, including children, pregnant people, parents, older adults, and people with disabilities. Established in 1965 by Title XIX of the Social Security Act, Medicaid is funded together by federal and state governments, allowing each state to run its own program within federal guidelines.[1] As a result, eligibility requirements and covered services differ from one state to another.[2]

    New Jersey’s Medicaid program covers a broad set of services, including preventive and acute care, behavioral health care (mental health conditions and substance use disorders), and long-term services. It also covers home- and community-based supports that help people stay healthy and independent.[3] While federal law requires Medicaid to cover a core set of health care services, New Jersey has used state legislation, administrative rulemaking, and federal Medicaid authorities to expand covered services.[4]

    New Jersey uses a managed care model to deliver health care services to Medicaid members. The State contracts with five private managed care organizations (MCOs) to coordinate and run those services. The State pays the MCOs a fixed monthly payment, known as a capitation rate, for each enrolled member.[5]  The MCOs are responsible for coordinating members’ care, ensuring access to covered services, managing provider networks, and promoting preventive care and chronic disease management.[6]

    What is the difference between Medicaid and NJ FamilyCare?

    Medicaid is the name of the federal-state health insurance program set by law in Title XIX of the Social Security Act and overseen federally by the Centers for Medicare & Medicaid Services. Each state that administers Medicaid may brand its program specific to its state. New Jersey calls its Medicaid program “NJ FamilyCare.”

    Since 2000, NJ FamilyCare has been the state’s umbrella term for two public health insurance programs: Medicaid and the Children’s Health Insurance Program (CHIP). CHIP is a program signed into federal law in 1997 that provides federal funding to help states offer health coverage to children in families whose incomes are too high to qualify for Medicaid but too low to afford private health insurance. [7] Although Medicaid and CHIP have different eligibility requirements, residents enrolled in either program are called members of NJ FamilyCare.[8] The Division of Medical Assistance and Health Services at the New Jersey Department of Human Services runs both programs.[9]

    How many people in New Jersey does Medicaid serve?

    As of July 2026, NJ FamilyCare, which includes both Medicaid and CHIP, covers close to 1.8 million New Jersey residents. That is 1 in 5 people in the state.[10] Medicaid is a major source of coverage for pregnant people and children. One-third of births and one-third of children in the state are covered by Medicaid. Medicaid also covers 3 in 5 nursing home residents and 2 in 5 people with disabilities.[11]

    Medicaid Provides Health Coverage to Children and Pregnant, Aging, and Disabled People

    Medicaid enrollment reaches communities across New Jersey — from northern urban areas, to the shore, to rural South Jersey. Cumberland County has the highest Medicaid enrollment per capita, with nearly one-third of residents enrolled, while urban counties such as Passaic and Essex also have high enrollment rates, with more than a quarter of residents enrolled. Shore counties including Ocean and Atlantic have Medicaid enrollment rates of roughly 1 in 4 residents. At the other end of the spectrum, Hunterdon and Morris Counties have the lowest enrollment rates, with about 1 in 11 residents enrolled.[12]

    Lower enrollment rates, however, do not necessarily mean lower need. Differences in enrollment can reflect a county’s underlying demographics and economic conditions, along with differences in outreach and enrollment processes.[13] Counties with lower enrollment would benefit from stronger outreach efforts, including partnerships with community organizations, multilingual assistance, and training for enrollment navigators to connect eligible residents to coverage.[14] New Jersey Medicaid enrollment does not follow a simple urban-rural divide. Rates are highest in the state's urban centers and in rural South Jersey, and lowest in its wealthier suburbs.[15]

    Who qualifies for Medicaid in New Jersey?

    NJ FamilyCare provides health coverage to a diverse range of New Jersey residents, including children, parents, pregnant people, older adults, people with disabilities, and other eligible adults with low incomes. These categories are “means-tested,” meaning that eligible residents have to meet certain income requirements. These income requirements are typically tied to the federal poverty level (FPL), an income guideline established by the U.S. Department of Health and Human Services to determine eligibility for various federal and state assistance programs.[16] The level varies based on household size and, although it is updated annually to keep up with inflation, it does not generally reflect the true cost of living.[17] Immigration status also affects eligibility. See the section “How does immigration status affect Medicaid eligibility” below.

    Generally, residents can qualify for Medicaid under two different eligibility categories: Modified Adjusted Gross Income (MAGI) or Aged, Blind and Disabled (ABD).[18] These eligibility pathways matter because each category serves different populations and uses different eligibility criteria, which affects who qualifies for Medicaid and what services they can receive.[19]

    The MAGI eligibility pathway looks at current monthly income before taxes when it determines eligibility and includes the following groups:[20]

    • Adults ages 19-64 with income up to 138 percent of the FPL (in 2026, less than $1,836 a month for a household of one)
    • Children under age 19 with family income up to 355 percent of the FPL (in 2026, less than $8,083 per month for a household of three)
    • Pregnant people with income up to 205 percent of the FPL (in 2026, less than $4,668 per month for a household of three)

     

    Residents may also qualify for Medicaid in the ABD category if they are 65 or older, blind, disabled, in long term care, or an adult age 19-64 who is enrolled in Medicare.[21] Because these groups often need more expensive long-term services and supports (LTSS), such as nursing home care or home- and community-based services, income requirements for this eligibility category are more strict. They require an assessment of an applicant’s current income as well as their assets.[22] For applicants who need LTSS, the government will look back at an applicant’s financial record for five years to determine eligibility.[23]

    In New Jersey, counties determine Medicaid eligibility. County Boards of Social Services are responsible for processing enrollment applications and sending approved applicant information to the State.[24] To help streamline eligibility determination and enrollment for potential applicants, the State has created resources, including the NJhelps.gov screening tool and a statewide online application portal.[25]

    New Jerseyans Qualify for Medicaid Under Two Eligibility Categories: Modified Adjusted Gross Income (MAGI) or Aged, Blind and Disabled (ABD).

    How Does Immigration Status Affect Medicaid Eligibility?

    Eligibility for NJ FamilyCare depends on both income and immigration status.[26] While all applicants must meet the program's income requirements, eligibility varies by immigration status. Through the Cover All Kids initiative, children under age 19 can qualify for NJ FamilyCare regardless of their immigration status.[27] Most immigrant adults must be lawful permanent residents, also known as green card holders, for at least five years before becoming eligible for federally funded coverage, although certain immigrants with lawful permanent resident status may qualify without a waiting period.[28] Pregnant people who are lawfully present are also eligible regardless of when they entered the United States.[29]

    Beginning October 1, 2026, changes enacted by Congress through H.R. 1, also known as the “One Big Beautiful Bill Act,” narrow the categories of non-citizens who qualify for federally funded Medicaid. As a result, New Jersey will end Medicaid coverage for some immigrants who were previously eligible under federal rules.

    Non-citizens who continue to qualify for Medicaid under the new rules include:[30]

    • Lawful Permanent Residents, otherwise known as a green card holders, of at least 5 years (calculated from the date of grant of qualifying status)
    • Certain Lawful Permanent Residents of less than five years[31]
    • Cuban/Haitian Entrants
    • Compacts of Free Association (COFA) migrants, who come from Micronesia, the Marshall Islands, and Palau
    • Lawfully present pregnant people
    • Lawfully present non-citizens who are under the age of 21
    • Children under 19, regardless of their immigration status

     

    Non-citizens who have not adjusted to Lawful Permanent Resident status and who will lose Medicaid eligibility as of October 1, 2026 include:[32]

    • Refugees
    • Asylees
    • Temporary humanitarian parolees (those paroled into the U.S. for at least one year)
    • Victims of trafficking and their spouses, children, siblings, or parents
    • Victims of domestic violence, applying under the U.S. Violence Against Women Act[33]
    • Lawfully residing veterans and active-duty service members and certain family members
    • Afghan nationals granted parole between July 31, 2021, and September 30, 2023
    • People who were paroled into the U.S. between February 24, 2022 and September 30, 2024 under the Ukrainian Humanitarian Parole program
    • People whose deportation is being withheld

     

    What is the Medicaid expansion population?

    Through the Affordable Care Act (ACA), New Jersey expanded Medicaid eligibility on January 1, 2014, becoming one of 25 states to implement the expansion as soon as the program was available. [34] Before expansion, many adults without dependent children were not eligible for Medicaid even if their income level met the eligibility threshold. Medicaid expansion extended coverage to adults ages 19 through 64 with incomes up to 138 percent of the FPL, regardless of whether they had children, a disability, or qualified for another traditional eligibility category.[35] For example, using 2026 eligibility levels for a family of three, only those making up to $508 a month would have been eligible for traditional Medicaid. With Medicaid expansion, those making up to $3,142 a month are eligible.[36]

    The Medicaid expansion population makes up nearly one-third of all enrollees in NJ FamilyCare and primarily consists of low-income adults without dependent children, as well as parents and caretaker relatives whose incomes fall within the expansion eligibility limits.[37] These members qualify under the Modified Adjusted Gross Income (MAGI) eligibility rules.

    How is Medicaid funded?

    New Jersey's Medicaid program is funded by both the federal government and the state of New Jersey.[38] Medicaid is one of the largest programs in New Jersey's budget. During Fiscal Year 2024, total NJ FamilyCare spending, including Medicaid and CHIP, was about $24 billion, with around $14 billion financed by federal Medicaid funds and $10 billion through the state budget.[39] Because the federal government shares the cost of providing care for many eligibility groups, every state dollar invested in Medicaid coverage for those groups draws additional federal funding into New Jersey's health care system.[40]

    The Federal Medical Assistance Percentage (FMAP) sets the federal share, meaning the portion of Medicaid costs the federal government reimburses to each state. New Jersey receives the minimum regular FMAP of 50%. For most traditional Medicaid services, the federal government pays half the cost and the state pays the other half.[41]

    The State does not receive the same federal reimbursement rate for all Medicaid members. Some eligibility groups qualify for a higher level of federal support. For example, adults who became eligible through the Affordable Care Act’s Medicaid expansion are funded at a 90 percent federal matching rate, with New Jersey responsible for the remaining 10 percent of costs.[42] When taking into account the entire Medicaid and CHIP population in New Jersey along with the varied reimbursement rates, the federal government assumes a roughly 60 percent blended share of the cost of NJ FamilyCare.[43]

    How are federal cuts affecting Medicaid in New Jersey?

    When Congress passed H.R. 1, also known as the “One Big Beautiful Bill Act,” in July of 2025, it imposed restrictions on the Medicaid program to reduce Medicaid spending to fund tax cuts for the wealthy.[44] The Medicaid provisions in H.R. 1 will reduce federal funding for New Jersey's health care system by restricting eligibility for immigrants, imposing new work reporting requirements, and reducing federal support for providers that serve Medicaid patients.[45] The New Jersey Department of Human Services estimates that more than 300,000 residents could lose Medicaid coverage because of the law's new administrative requirements and eligibility changes.[46]

    Two eligibility changes will most directly affect Medicaid members:[47]

    1. Immigrant eligibility: Beginning October 1, 2026, federal law narrows which immigrant statuses will remain eligible for Medicaid, meaning some non-citizen adults who were previously eligible will no longer qualify for Medicaid coverage. Children covered through New Jersey's Cover All Kids initiative remain eligible, regardless of their immigration status; it is a state-funded program that does not rely on federal matching funds.[48]
    2. Work requirements: For the program's first 60 years, the federal government never required states to tie Medicaid eligibility to work.[49] Beginning January 1, 2027, adults ages 19 to 64 enrolled in the Medicaid expansion population will be required to document that they are working, volunteering, attending school, or participating in other qualifying activities to maintain coverage.[50] There will be certain exemptions for pregnant people, parents of children under 14, those who are deemed “medically frail,” and other exclusions that may require additional documentation. The government will also need to recheck eligibility for all expansion members every six months.[51]

    Beyond coverage losses, New Jersey is projected to lose billions of dollars in federal Medicaid funding for hospitals and other health care providers, with provider payment reductions increasing over time and total federal revenue losses reaching as much as $2.6 billion annually once the law is fully implemented.[52] These cuts threaten access to care for residents with low incomes while placing additional financial strain on hospitals, community health centers, nursing facilities, and other providers. The strain falls hardest on providers caring for large numbers of uninsured and Medicaid patients.[53]

    How does Medicaid support health equity and the providers who serve New Jersey?

    Medicaid is more than health insurance for residents with low incomes. It connects 1.8 million New Jerseyans to the health care they need to keep themselves, their families, and their communities healthy. In New Jersey, more than half of Medicaid enrollees are from communities of color.[54] These communities have historically faced barriers to health care rooted in racism, discrimination, and unequal access to economic and social resources, contributing to persistent disparities in health coverage, access to care, and health outcomes.[55] Medicaid expansion has narrowed longstanding racial disparities in health coverage.[56] By connecting people to preventive care, prescription medications, behavioral health services, maternity care, and long-term services and supports, Medicaid improves health outcomes while protecting families from overwhelming medical debt.[57]

    At the same time, Medicaid provides a stable source of funding for hospitals, community health centers, physicians, nursing facilities, and other providers that care for New Jersey's most underserved residents.[58] For example, New Jersey's Fiscal Year 2027 budget includes approximately $539.2 million in Medicaid outpatient state-directed payments that will go directly to hospitals to support outpatient care. [59] Medicaid is also the primary payer for nursing home care and finances a large share of maternity and behavioral health care in the state.[60] At University Hospital, New Jersey’s only public hospital, 43 percent of patients are covered by Medicaid.[61] By supporting these providers, Medicaid funding benefits both program members and the broader health care system and the communities it serves.[62]

    How can leaders improve the Medicaid program in New Jersey?

    As New Jersey implements the federal Medicaid changes enacted under H.R. 1, state leaders have an important role to play in protecting access to health coverage and strengthening the health care system for the residents who rely on it. Some recommended actions include:

    Make it easier for eligible people to keep their health insurance coverage.

    New Jersey should minimize the administrative burden created by new federal Medicaid requirements and make it as easy as possible for eligible residents to maintain coverage. The State should use administrative data wherever possible to verify eligibility and qualifying activities. It should also send clear, accessible notices and invest in outreach and enrollment assistance to help people understand and meet new requirements. For people seeking exemptions, the State should rely on existing information whenever possible and let people confirm their own status where permitted, rather than requiring repeated documentation that could cause eligible people to lose coverage. These steps can help prevent coverage losses caused by paperwork rather than actual changes in eligibility.[63]

    Explore coverage options for people left out of federal Medicaid.

    New Jersey should use state resources to maintain affordable coverage options for residents who lose federal Medicaid eligibility, particularly immigrant families and children. This includes continuing to fully fund Cover All Kids and exploring additional state-funded coverage for adults who are excluded from federal Medicaid because of their immigration status. New Jersey should also expand affordable coverage through NJ FamilyCare or the GetCovered NJ marketplace to help fill gaps created by federal cuts. NJPP has previously recommended a subsidized NJ FamilyCare buy-in option and additional state subsidies to replace lost federal assistance.[64]

    Invest in the health care safety net.

    As federal Medicaid cuts increase the number of uninsured New Jerseyans, the State should make sure hospitals, community health centers, behavioral health providers, nursing facilities, and other safety-net providers have the resources they need to continue serving patients regardless of their ability to pay. Ensuring adequate funding, through Charity Care and the Medical Emergency Payment Program, will help prevent federal cuts from being shifted onto providers, patients, and state programs while preserving access to care in communities that rely most heavily on Medicaid.[65]

    Defend Medicaid and affordable coverage at the federal level.

    New Jersey's congressional delegation and state leaders should continue to advocate for restoring federal Medicaid funding and opposing policies that make it harder for eligible people to get and maintain coverage. The State has made progress in reducing its uninsured rate over the past decade, and policymakers should keep federal cuts from reversing those gains. Protecting Medicaid is ultimately an investment in New Jersey families, the state's health care system, and the broader health and economic security of its residents.[66]

    End Notes

    [1] Centers for Medicare & Medicaid Services. Program History and Prior Initiatives. Accessed Jul. 14, 2026.

    [2] Center on Budget and Policy Priorities. Policy Basics: Introduction to Medicaid. Updated Nov. 4, 2025.

    [3] New Jersey Department of Human Services. NJ FamilyCare - What Does It Cover? Accessed Jul. 14, 2026.
    New Jersey Department of Human Services. Division of Medical Assistance and Health Services: About DMAHS. Accessed Jul. 14, 2026.

    [4] Centers for Medicare & Medicaid Services. Mandatory & Optional Medicaid Benefits. Accessed Jul. 14, 2026.

    [5] N.J.A.C. 10:74-3.10

    [6] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: NJ Medicaid & Managed Care. Accessed Jul. 14, 2026.

    [7] New Jersey Department of Human Services. Background Information on NJ FamilyCare. Accessed Jul. 14, 2026.
    Centers for Medicare & Medicaid Services. Program History and Prior Initiatives. Accessed Jul. 14, 2026.

    [8] New Jersey Department of Human Services. Welcome to NJ FamilyCare. Accessed Jul. 14, 2026.
    Note: In NJ legislation, “NJ FamilyCare” refers only to the CHIP program while “Medicaid” refers to the Medicaid program.

    [9] New Jersey Department of Human Services. Division of Medical Assistance and Health Services Homepage. Accessed Aug. 11, 2026.

    [10] New Jersey Department of Human Services. DMAHS Analytics Homepage. Accessed Jul. 14, 2026.

    [11] KFF. Medicaid in New Jersey. May 2025.

    [12] New Jersey Department of Human Services. DMAHS Analytics: Eligibility Explorer. Accessed Jul. 14, 2026.
    New Jersey Department of Labor & Workforce Development. Labor Market Information: Population and Household Estimates. “County Estimates.” Accessed Jul. 14, 2026.

    [13] Artiga, Samantha, Rudowitz, Robin, and Tolbert, Jennifer. KFF. “Outreach and Enrollment Strategies for Reaching the Medicaid Eligible but Uninsured Population.” Mar. 2, 2016.

    [14] Podsiad, Kristin, Kukoyi, Olurotimi, Efird-Green, Lea, Thoumi, Andrea, and Plasencia, Gabriela. Health Affairs. “How States Can Improve Medicaid Outreach Among Unenrolled And Eligible Latine Populations.” Aug. 6, 2025.

    [15] New Jersey Department of Human Services. DMAHS Analytics: Eligibility Explorer. Accessed Jul. 14, 2026.
    New Jersey Department of Labor & Workforce Development. Labor Market Information: Population and Household Estimates. “County Estimates.” Accessed Jul. 14, 2026.

    [16] U.S. Department of Health and Human Services. Federal Register: Annual Update of the HHS Poverty Guidelines. Accessed Jul. 30, 2026.

    [17] Ibid.
    Haider, Areeba and Schweitzer, Justin. Center for American Progress. “The Poverty Line Matters, But It Isn’t Capturing Everyone It Should.” Mar. 5, 2020.

    [18] New Jersey Department of Human Services. NJ FamilyCare - Who Is Eligible? Accessed Jul. 14, 2026.

    [19] Colello, Kristen J. and Morton, William R. Medicaid Eligibility: Older Adults and Individuals with Disabilities. Dec. 9, 2019.

    [20] New Jersey Department of Human Services. NJ FamilyCare Income Chart, effective January 1, 2026. Accessed July 30, 2026. The dollar amounts used here refer to the chart in effect for 2026 only.
    Modified Adjusted Gross Income (MAGI) is calculated before taxes are withheld but do not include certain pre-tax contributions such as health insurance premiums and retirement contributions. Some post-tax contributions, such as child support, SSI, and worker’s compensation are also not included.
    Brooks, Tricia. Georgetown University Health Policy Institute: Center for Children and Families. Getting MAGI Right: A Primer on Differences that Apply to Medicaid and CHIP. Jan. 30, 2015.

    [21] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Aged, Blind and Disabled. Accessed Jul. 14, 2026

    [22] Musumeci, MaryBeth, Chidambaram, Priya, and O’Malley Watts, Molly. KFF. Medicaid Financial Eligibility for Seniors and People with Disabilities: Findings from a 50-State Survey. Jun. 14, 2019.
    Countable assets include stocks, bonds, certificates of deposit, savings and checking accounts; second homes or vehicles; life insurance policies greater than $1500; and jewelry, art, and collectibles. Exempt assets that are not counted include an applicant’s primary home and car, clothing and personal items, and essential household furniture and appliances.
    Medicallongtermcare.org. What are Considered Assets. Accessed Aug. 10, 2026.

    [23] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Aged, Blind and Disabled. Accessed Jul. 14, 2026
    New Jersey Department of Human Services. MLTSS Application Guidance. Apr. 2026.

    [24] NJ Rev Stat § 30:4D-3 (2025).
    For a list of County Social Service Agencies, see Division of Family Development: County Social Services Agencies.

    [25] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: NJ FamilyCare/Medicaid. Accessed Jul. 14, 2026
    NJHelps.gov
    NJ FamilyCare Online Application Portal

    [26] For a copy of the income eligibility chart in Spanish, see Tabla de Ingressos.

    [27] P.L. 2021, c.132.
    New Jersey Department of Human Services. Cover All Kids: Frequently Asked Questions. Accessed Jul. 30, 2026.

    [28] New Jersey Department of Human Services. NJ FamilyCare: Immigrant Information. Accessed Jul. 14, 2026.

    [29] Ibid.
    For a definition of lawfully present, please see: NJ FamilyCare: Immigrant Information.

    [30] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Non-citizen Eligibility. Accessed Aug. 17, 2026.

    [31] For a more complete list of immigration statuses for Lawful Permanent Residents of less than five years, see Non-citizen Eligibility | Division of Medical Assistance and Health Services.

    [32] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Non-citizen Eligibility. Accessed Aug. 17, 2026.

    [33] We use the term “victim” to match the terminology in state and federal eligibility guidance. Many advocacy groups prefer “survivor,” which centers the person rather than the harm done to them. National Sexual Violence Resource Center. Language Access: Correct Pronouns & Terms. Accessed Aug. 31, 2026.
    Safe Alliance. Words Matter: “Victim” or “Survivor.” Accessed Aug. 31, 2026.

    [34] New Jersey Department of the Treasury Office of Management and Budget and Governor Chris Christie. Fiscal Year 2014: Citizen’s Guide to the Budget. P. 109. Feb. 26, 2013.
    KFF. Status of State Action on the Medicaid Expansion Decision. May 2026.

    [35] New Jersey Department of Human Services. Background Information on NJ FamilyCare. Accessed Jul. 14, 2026.

    [36] New Jersey Department of Human Services. MEDICAID COMMUNICATION NO. 26-03. Feb. 26, 2026.

    [37] New Jersey Department of Human Services. DMAHS Analytics: Eligibility Explorer. Accessed Jul. 14, 2026. Uses average monthly enrollment from June 2025 to May 2026.
    New Jersey Department of Human Services. FY 2025-2026 Discussion Points. P. 3. Accessed Jul. 14, 2026.

    [38] New Jersey Department of Human Services. Modeling Impact to NJ Medicaid of Congressional Budget Proposals. P. 1. Feb. 2025.

    [39] Ibid.

    [40] KFF. Medicaid Financing: The Basics. Mar. 4, 2026.

    [41] KFF. Federal Medical Assistance Percentage (FMAP) for Medicaid and Multiplier. Fiscal Year 2027.

    [42]Mathers, Jessica, Tolbert, Jennifer, Chidambaram, Priya, and Cervantes, Sammy. KFF. “5 Key Facts About Medicaid Expansion.” Apr. 25, 2025.

    [43] New Jersey Department of Human Services. Modeling Impact to NJ Medicaid of Congressional Budget Proposals. P. 1. Feb. 2025.
    Because the implementation of H.R. 1 is projected to most acutely impact the expansion population, we expect this blended share estimate to decrease next year.

    [44] Johnson, Micah and Ducas, Andrea. Center for American Progress. “$1 Trillion in Medicaid Cuts—$1 Trillion in Tax Giveaways for the Richest 1 Percent: The One Big ‘Beautiful’ Bill’s Budget Math.” Jul. 3, 2025.

    [45] New Jersey Department of Human Services. Key Direct Impacts of H.R. 1: New Jersey. May 2026.
    New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Federal Changes to NJ FamilyCare/Medicaid: Home. Accessed Aug. 6, 2026.

    [46] New Jersey Department of Human Services. Key Direct Impacts of H.R. 1: New Jersey. May 2026.
    Hinton, Elizabeth and Rudowitz, Robin. KFF. 5 Key Facts About Medicaid Work Requirements. Feb. 18, 2025.
    For a more detailed discussion of the new federal work requirements and their anticipated impact on NJ’s Medicaid population, stay tuned for NJPP’s forthcoming report.

    [47] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Federal Changes to NJ FamilyCare/Medicaid: Home. Accessed Aug. 6, 2026.

    [48] New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Federal Changes to NJ FamilyCare/Medicaid: Non-Citizens. Accessed Aug. 6, 2026; New Jersey Department of Human Services. Cover All Kids: Frequently Asked Questions. Accessed Jul. 30, 2026.

    [49] Meuse, Dan. State Health & Value Strategies. “Medicaid Work Reporting Requirements: Implementation Basics and State Decision Points.” Aug. 15, 2025.

    [50] One Big Beautiful Bill Act of 2025, Pub. L. No. 119-21, 139 Stat. 72.

    [51] Meuse, Dan. State Health & Value Strategies. “Medicaid Work Reporting Requirements: Implementation Basics and State Decision Points.” Aug. 15, 2025.
    New Jersey Department of Human Services. Division of Medical Assistance and Health Services: Federal Changes to NJ FamilyCare/Medicaid: Home. Accessed Aug. 6, 2026.

    [52] New Jersey Department of Human Services. Key Direct Impacts of H.R. 1: New Jersey. May 2026.

    [53] Ibid.

    [54] KFF. Medicaid Enrollees by Race/Ethnicity. 2023.

    [55] Feagin J, Bennefield Z. Social Science & Medicine. Feb. 2014. Vol. 103, pp. 7-14; National Academies of Sciences, Engineering, and Medicine. Chapter 3, Evidence of Racial and Ethnic Inequities in Health Care. In Ending Unequal Treatment: Strategies to Achieve Equitable Health Care and Optimal Health for All. 2024. Pp. 79-124.

    [56] Guth, Madeline, Artiga, Samantha, and Pham, Olivia. KFF. “Effects of the ACA Medicaid Expansion on Racial Disparities in Health and Health Care.” Sept. 30, 2020.

    [57] Rudowitz, Robin and Antonisse, Larisa. KFF. Implications of the ACA Medicaid Expansion: A Look at the Data and Evidence. May 23, 2018.

    [58] New Jersey Department of Treasury and Governor Philip D. Murphy. The State of New Jersey Appropriations Handbook: Fiscal Year 2026. Jun. 1, 2025.

    [59] New Jersey Department of the Treasury Office of Management and Budget and Governor Mikie Sherrill. The State of New Jersey Budget in Brief: Summary of Budget Recommendations, Fiscal Year 2027. P. 28. Mar. 2026.

    [60] Georgetown University Center for Children and Families. Medicaid is Vital to New Jersey Fact Sheet. 2025.

    [61] University Hospital. “2022-2025 Community Health Improvement Plan.” P. 4. Mar. 2026.

    [62] New Jersey Department of Human Services. News, Press Releases 2025. "Governor Murphy Holds Second Roundtable Discussion with Medicaid Recipients as Congress Slashes Health Care Funding." May 30, 2025.

    [63] Holom-Trundy, Brittany. New Jersey Policy Perspective. Mind the Gap: Keeping New Jerseyans Covered in the Face of Federal Cuts. Feb. 6, 2026.
    Spiegel, Jennifer. New Jersey Policy Perspective. Proposed Medicaid Work Rule Puts Coverage for the Medically Frail at Risk. Jul. 30, 2026.
    Wagner, Jennifer, Singleton, Symonne, and Stewart, Maani. Center for Budget and Policy Priorities. “A Guide to Reducing Coverage Losses Through Effective Implementation of Medicaid’s New Work Requirement.” Nov. 3, 2025.

    [64] Holom-Trundy, Brittany. New Jersey Policy Perspective. Mind the Gap: Keeping New Jerseyans Covered in the Face of Federal Cuts. Feb. 6, 2026.
    Chen, Peter, Aguas, Tonanziht, Ambrose, Alex, and Ubel, Marleina. New Jersey Policy Perspective. What to Look for in the New Jersey Budget for Fiscal Year 2027. Mar. 3, 2026.

    [65] O’Hagen Karl, Anne, Herring, Avi, and Ofengeym, Yelena. Manatt. “How States Support Safety Net Hospitals through Innovative Funding Approaches.” Oct. 30, 2024.

    [66] Castro, Raymond. New Jersey Policy Perspective. Repealing the Medicaid Expansion Would Reverse Health Coverage Gains & Deepen New Jersey’s Financial Crisis. Nov. 28, 2016.

     

    New Jersey’s Medicaid Fee Raises Money, Not Coverage

    Posted on by Brittany Holom-Trundy

    Health care costs continue to rise, and shifting federal policies threaten long-standing access to coverage. New Jerseyans are calling on the state government to protect their health care. Federal cuts to Medicaid mean hundreds of thousands of residents are expected to lose coverage, and billions of dollars that once supported the state’s health care system are disappearing. A New Jersey bill recently signed into law, A5324, attempts to fill the budget gap by collecting a new fee from employers with 50 or more employees enrolled in Medicaid.

    New federal laws passed through H.R. 1, also known as the “One Big Beautiful Bill Act,” cut funding and created harmful restrictions for Medicaid, the hospital system, and health insurance marketplaces. As a result, an estimated 300,000 New Jersey residents will likely lose their Medicaid coverage, nearly one-fifth of the 1.8 million residents covered as of June 2026. With these cuts, the Garden State stands to lose an estimated $3.3 billion in federal Medicaid funding. The resulting increases in the costs for uncompensated care for uninsured residents and loss of Medicaid payments for providers put facilities that operate in rural areas and safety net hospitals for lower-income communities in urban areas at greater risk of closure, worsening racial and socio-economic health disparities.

    Under the new law, New Jersey employers with 50 or more employees enrolled in Medicaid would face an annual per-employee fee. The number of employees enrolled in Medicaid determines an employer’s fee tier. The state then charges that tier’s rate for every employee and every dependent enrolled.

    The law includes a variety of exemptions that will lower the generated revenue and create budget uncertainty in the coming years. Beginning with the first year, the state will not collect a fee for employees or dependents with a developmental, intellectual, or permanent physical disability. Beginning on July 1, 2027, the fee will also exclude part-time, per diem, or temporary employees; seasonal employees; and employees who have been employed for less than 90 days at the time the fee is determined. Employers who pay the fee for these employees prior to that date will be able to file for a credit or refund starting in 2028. These exceptions and changing business tax calculations mean that the estimated funds that the state will collect swing from $154.1 million in the first year down to $23.2 million in the second year. It is unclear where the funding will stabilize in later years.

    The fee focuses only on residents already enrolled in Medicaid. It does nothing to expand coverage options for uninsured employees or make health care more affordable for residents. Most federal dollars lost from the H.R. 1 cuts come from the expected lower enrollment and loss of matching funds. A fee that does not aim to keep people enrolled in Medicaid will not stop that loss.

    Finally, the fee as currently designed could harm workers and their families. The state’s framing of Medicaid enrollment as a burden creates a stigma for low-income workers for whom Medicaid may be the best coverage option for them and their families. The fee exemptions mean an employer could reduce hours or jobs for full-time employees and favor part-time employees who do not qualify for benefits or count toward the fee. Calculating the fee may require unnecessary collection of sensitive information, including the immigration status of temporary and seasonal workers. This conflicts with the state’s investment in programs like Cover All Kids.

    A strong state budget relies on a stable health care system. Achieving that stability requires the state to prioritize affordable coverage options. Other states, including Massachusetts have, at times, tried different types of fees based on program enrollment to cover rising costs. These fees have not remained in place. Instead, broader tax and support approaches have proven to be more predictable and sustainable. As federal cuts loom, New Jersey leaders need to act. They must stabilize revenue, keep people enrolled in Medicaid, and create new coverage options that address growing barriers to care.

    New Jersey Makes Data Brokers Pay for Collecting Your Information

    Posted on by Peter Chen

    The digital economy relies heavily on collecting personal data. This requires new tools to regulate the practice and new methods to compensate states when companies collect their residents’ data. Companies popularly known as “data brokers” operate invisibly, collecting and buying consumer data and then aggregating and selling it to advertisers and merchants. A New Jersey bill recently signed into law, A5328, creates new regulations on companies that collect and sell consumer data, including a registration fee that increases with the amount of data collected.

    Under the new law, these companies will pay a registration fee on a sliding scale, with small operators of fewer than 100,000 consumers paying $5,000, rising as high as $1.5 million for larger operations with more than 4.5 million consumers. Along with the fee, the new law requires data brokers to report basic information about their business and practices, as well as restrictions on the collection or sale of sensitive data such as religious beliefs or credit card numbers.

    Estimating the revenue generated by this law is difficult because of limited information on data brokers and high rates of noncompliance in states with data broker registration. Other states with data broker registration regimes have a fixed registration fee of a few hundred dollars, but New Jersey’s law appears to be the first in the nation to charge an escalating registration fee that reflects how much the data broker collects and sells. Because this law is new, many questions about how it will work remain unanswered, including how and when it will be enforced. Without knowing how many consumers have their data collected and sold, and how many data brokers will comply with the new law, the Office of Legislative Services left the fiscal estimate “indeterminate.”

    New Jersey’s registration requirement follows those of other states, such as California and Texas, which have recognized the data privacy concerns raised by these companies. As NJPP has previously identified, data in the largely unregulated data broker industry can be used or misused by law enforcement or private entities to reveal sensitive information or discriminate against people or groups.

    Appropriately taxing and collecting fees from the digital economy, especially the less visible players such as data brokers and advertisers, will be critical to ensure stable revenue collection and fair payment for the costs imposed on residents and state governments.

    ###

    A Wealth of Revenue: How Taxing Wealth Proceeds Can Help Balance New Jersey’s Budget

    Posted on by Peter Chen

    Adopting a wealth proceeds tax based on federal law could raise more than $1.1 billion to help balance New Jersey’s state budget, while affecting only a small share of the state’s wealthiest households. New Jersey policymakers could direct those funds toward education, health care, and other investments families need.

    A core problem facing states is the limited ability to tax wealth, as opposed to income:

    • Income is the money paid to a household, such as wages or salary, interest, or business profits.
    • Wealth is the total value of all a household’s assets minus its debts, including the value of real estate, stocks, investments, and trusts, while subtracting debt such as mortgages or student loans.

     
    Traditional tax systems tax income or sales transactions but have a difficult time taxing the wealth increases of households with high incomes. Put another way, Jeff Bezos’s wealth doesn’t come from his annual salary, but from the increasing value of his stake in Amazon and other companies. These types of increases in wealth are often taxed at preferential rates, when they are taxed at all.

    New Jersey can take one step to solve this problem by adopting a wealth proceeds tax, based on the federal tax code. Rather than a direct tax on wealth, the federal government currently applies a 3.8 percent “net investment income tax” to the passive income generated by interest, dividends, and capital gains — the “proceeds” of wealth.

    Without requiring burdensome new regulations, New Jersey could adopt the federal definition and incorporate it into its tax filing process. Minnesota already set a precedent in 2023 by doing so with a 223-word bill that codified this new revenue source. This would improve on New Jersey’s existing tax system, which treats capital gains such as stock sales as regular income.

    Adopting a 4 percent tax on wealth proceeds based on the federal definition could raise more than $1.1 billion — a much-needed source of revenue at a moment when the state faces more than $1 billion in structural deficits heading into Fiscal Year 2027.

    Only about 6.5 percent of New Jersey households would be affected by this change, with two-thirds of those households bringing in more than $1 million annually. More than 93 percent of New Jersey households would see no change at all.

    As New Jersey policymakers consider revenue options, a wealth proceeds tax is a useful tool to raise revenue that focuses on the wealthiest individuals, rather than working-class and middle-class families.

    Families Still Pay Millions to Stay Connected to Loved Ones in Prison

    Posted on by Marleina Ubel

    A phone call home can mean everything for the thousands of people incarcerated in New Jersey’s prisons and jails. Staying connected improves mental health, strengthens family ties, and helps people prepare for a successful return to their communities. But for many, these calls come at a high and unjust price. In 2024, NJPP released a report detailing these costs and who they harm most.

    Historically, private companies ViaPath and JPay held monopoly contracts with New Jersey prisons and jails, charging families millions of dollars each year just to stay in touch with their loved ones. The scale of the problem is immense: in 2023 alone, these two companies generated over $7 million from phone calls, electronic messages, and video calls in state prisons.[1] Phone calls alone made up nearly three-quarters of that revenue, with ViaPath collecting almost $5.3 million from incarcerated New Jerseyans.[2]

    The New Jersey Department of Corrections (NJDOC) has since renegotiated its contract, ending its relationship with JPay and securing new, lower rates with ViaPath.[3]

    A table showing updated fees and average costs of prison communication services

    Despite the new rates, families across New Jersey are still projected to pay an astonishing $6.6 million annually just to stay connected to their loved ones.[4]

    That is roughly 65 percent of the total wages paid to incarcerated people in 2022, who typically earn just $1.60 to $7.50 a day.[5] For the many people in prison who earn the lowest daily pay rate, making a phone call home or sending an email costs a significant portion of their earnings. As a result, most of these costs fall on loved ones.

    The financial burden is heaviest for women of color, specifically Black women, who are disproportionately the ones paying these costs.[6] Nationally, one in three families with an incarcerated loved one goes into debt trying to afford prison phone calls and messages.[7] In New Jersey, where the Black-white incarceration disparity is the highest in the nation, this is not just an economic issue but a racial justice one.[8]

    Other states and cities have recognized that charging families for prison communication is both cruel and counterproductive. In recent years, New York, Massachusetts, Minnesota, and several other states have eliminated fees entirely.[9] New Jersey should not lag behind. At a cost of less than half a percent of the state’s $1.1 billion corrections budget, New Jersey could cover communication costs for every person incarcerated in a state prison and end these predatory practices.[10]

    Keeping families connected is about more than fairness — it is about building safer, stronger communities. Regular communication reduces recidivism, supports children of incarcerated parents, and helps ensure that people return home ready to succeed.[11] No one should be forced to choose between debt and family ties.

    New Jersey should make prison phone calls, emails, and video calls free of charge. Families have carried this cost for too long.

    End Notes

    [1] Ubel, M. Prison Profiteers: How Private Companies Profit From Prison Phone Calls and Harm New Jersey Residents. New Jersey Policy Perspective. (2024). Number has been adjusted for inflation.

    [2] Ubel, M. Prison Profiteers: How Private Companies Profit From Prison Phone Calls and Harm New Jersey Residents. New Jersey Policy Perspective. (2024). Number has been adjusted for inflation.

    [3] New Jersey Department of Corrections response to FY26 budget hearing questions. 2025. Pg. 27.

    [4] Based on fiscal analysis done by Worth Rises using average DOC and jail population data and 2024 usage data provided by DOC including taxes and deposit fees paid by families. This figure only includes the costs associated with prisons ($6.6 million). The cost to families with loved ones in county jails would be an additional $6.5 million. Methodology is on file with author.

    [5] Total wages in 2022 have been adjusted for inflation. New Jersey Department of Corrections response to FY24 budget hearing questions. 2023. Pg. 21; New Jersey Department of Corrections response to FY26 budget hearing questions. 2025. Pgs. 22-23.

    [6] deVuono-powell, Saneta, et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center, Forward Together, Research Action Design. Sep. 15, 2015. Pg. 9.

    [7] deVuono-powell, Saneta, et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center, Forward Together, Research Action Design. Sep. 15, 2015. Pg. 9.

    [8] Nellis, A. The Color of Justice: Racial and Ethnic Disparity in State Prisons. The Sentencing Project. Oct. 2021. Pg. 10.

    [9] Watford, A. New York Becomes Latest State To Offer Free Phone Calls In Prisons. Stateline. Aug. 1, 2025.

    [10] Based on fiscal analysis done by Worth Rises which estimates it would cost the state as little as $1.5 million to provide fully free communications across New Jersey state prisons. Methodology on file with author. Fiscal Year 2025-2026 Analysis of The New Jersey Budget: Department of Corrections And State Parole Board. New Jersey Office of Legislative Services. Apr. 2025. Pg. 2.

    [11] Wang, L. Research Roundup: The Positive Impacts of Family Contact For Incarcerated People And Their Families. Prison Policy Initiative. Dec. 21, 2021; Worth Rises. The Prison Industry: How It Started, How It Works, and How It Harms. Dec. 2020. Pg. 52.

    TANF Explained: New Jersey’s Safety Net Steadily Falls Short

    Posted on by Tonanziht Aguas
    In This Explainer
      Add a header to begin generating the table of contents

      New Jersey’s main cash assistance program for families has lost more than a third of its buying power since 1998.[1] A family of three now qualifies for a maximum of $559 a month, barely enough to cover the cost of groceries for most of the month, let alone rent, utilities, or transportation.[2] This is Temporary Assistance for Needy Families (TANF), the program designed to help families through hard times.

      The program reaches fewer families than it once did. This does not mean poverty has fallen. Instead, it shows that TANF has become too difficult to access for the families who need it most.

      Families are better positioned to get through hard moments when they have economic stability. But when someone loses a job, faces a medical crisis, or struggles to make ends meet, too many families lack the resources that would prevent a short-term setback from becoming a long-term hardship. That burden falls hardest on low-income families, which is why cash assistance is an effective tool the state uses to lift families out of poverty. New Jersey should strengthen TANF, so families count on support when hard times hit.

      This explainer answers common questions about how TANF works, who it serves, what is at stake for New Jersey families, and how the state can improve it.

      What is TANF?

      Temporary Assistance for Needy Families (TANF) is a federal poverty-fighting program that provides states with a fixed annual amount of money to support cash assistance — or monthly payments — and work-related services for low-income families.[3] Congress created TANF in 1996 to replace the prior government assistance system, Aid to Families with Dependent Children (AFDC), and to give states broad flexibility in designing and running their own programs.[4] To receive funding year after year, states contribute their own state dollars, called Maintenance-of-Effort, and adhere to federal TANF’s guidelines.[5]

      At its core, TANF is meant to be a bridge: time-limited support that keeps families afloat during moments of financial crisis while they work toward long-term stability through employment, education, or securing stable housing.[6] However, from the beginning, the program was shaped more by the goal of moving people off government assistance than by a commitment to eliminating poverty.[7] That early design framework, rooted in outdated and racialized assumptions about who needs help and how to deliver it, has survived for nearly three decades.[8] Reforming New Jersey’s TANF program is an opportunity to correct those longstanding shortcomings and bring it in line with today’s economic realities, ensuring it functions as the vital tool families have always needed.

      How Does TANF Connect to Work First New Jersey (WFNJ)?

      In New Jersey, the federal Temporary Assistance for Needy Families program is administered through Work First New Jersey (WFNJ), an umbrella program run by the state Department of Human Services’ Division of Family Development that oversees several work-related programs.[9] WFNJ was created in response to a federal “welfare overhaul,” known as the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and provides temporary cash assistance, work supports, and employment services to eligible residents.[10]

      The WFNJ program has three main parts:

      • Temporary Assistance for Needy Families (TANF): Cash assistance and work supports for families with dependent children and low incomes.[11]
      • General Assistance (GA): A state-funded program for single adults and childless couples who are not eligible for TANF.[12] New Jersey is one of only a few states that still offer this benefit.[13]
      • Emergency Assistance (EA): Short-term housing and shelter-related help available to people who qualify for WFNJ and meet certain requirements.[14]

       

      TANF Program Structure: Federal to Local

      Who Qualifies for TANF in New Jersey?

      Families with dependent children (children up to age 18) can get TANF cash assistance if they meet strict income and asset requirements. However, the eligibility rules have not been updated in any major way since 1997, even as the cost of living has climbed in the state.[15]

      To qualify and keep benefits, families must follow these rules:

      Financial eligibility and limitations

      • Monthly income below a specific amount based on family size.[16]
      • Families can keep no more than $2,000 in resources (for example savings in a bank account), except for specific exempt resources (examples of exemptions are ownership of a motor vehicle or property that does not produce revenue).[17]
      • All income is counted when determining eligibility (for example a portion of child support or dividend earnings), except for specific exempt sources (examples of exemptions are income tax refunds and SSI benefits).[18]

       

      Work and participation requirements

      • Parents must participate in work activities for at least 35 hours each week.[19]
      • A specific set of educational or vocational activities may count toward meeting work activity requirements for a period of time.[20]

       

      Time limits and family rules

      • Cash assistance is limited to five years (60 months) over a lifetime, with the exception of families that qualify for New Jersey’s extreme hardship category.[21]
      • Work activities must begin within the first two years (24 months) of receiving assistance.[22]
      • Non-compliance can result in a full-family penalty, or withholding of assistance, though it is not imposed immediately.[23]

       

      Administrative and other requirements

      • Parents must cooperate with child support rules. This includes giving the state rights to child support payments, with only a small amount of those payments passed on to families with children.[24]
      • Most non-citizen or lawful permanent residents are not allowed to receive assistance during their first five years in the United States, though exemptions exist for groups such as refugees, people seeking asylum, and others with specific protections.[25]

       

      Why Are the Eligibility Rules so Strict?

      TANF’s harsh features are not the product of neutral policymaking. They were shaped by racialized narratives about poverty that dominated federal cash assistance debates from the 1960s through the 1990s. These stories painted certain parents, Black mothers in particular, as irresponsible and unwilling to work. Policymakers then used those stereotypes to justify tying assistance to behavioral requirements.[26]

      New Jersey went further than federal law required on many of these restrictions. The Garden State was the first in the nation to adopt a family cap policy, which denied additional assistance to parents who had another child while receiving TANF.[27] The policy rested on the deeply racist assumption that Black and Brown people were having children irresponsibly or to increase their benefits.[28] In reality, it carried forward a legacy of reproductive control and punishment, treating family growth as something to be regulated rather than a basic human right, and ignoring the causes of poverty in favor of policing parents’ decisions.[29]

      Although New Jersey repealed the family cap in 2020, the underlying assumptions did not disappear.[30] The same stereotypes that feed into the idea of families needing to be monitored, corrected, or punished into “responsible” behavior continue to shape many of TANF’s current rules, including work requirements that go further than federal law and other policies that make it harder for families to enter, remain in, or exit the program.[31]

      How Much Do Families Actually Receive?

      Families receive very little compared to the cost of living. For a family of three, the maximum monthly cash payment is $559 (about $6.13 per person per day), but many families receive less than the maximum.[32] On an annual basis, the maximum benefit for a family of that size is $6,708.[33] For context, a family of three spends more than $10,000 a year on food alone in New Jersey.[34] The 2026 federal poverty level for a family of three is $27,320, meaning that the maximum TANF grant amounts to less than a quarter of that figure.[35]

      TANF's Limits Keep Families Locked Out and Left Short

      Benefit levels have also lost significant ground to inflation. As of 2026, the TANF grant has lost more than 34 percent of its buying power since 1998.[36] The most meaningful increase to the benefit level came in 2019-2020, when the maximum grant was last increased.[37] While that increase helped, it only partially restored what two decades of inflation had worn away; the grant has continued to fall behind New Jersey’s rapidly rising housing, food, and transportation costs ever since.

      To better illustrate the decline in buying power, consider the following: the 1998 TANF payment for a family of three was $424, but in 2026 dollars it is equal to $853.38.[38] Today’s grant stands at $559, a few hundred dollars less, and has been fixed for more than seven years.[39] If a family was relying on the monthly TANF maximum grant in years 1998 and 2026, and spending simply on some of the recommended dietary food items in the USDA Thrifty Food Plan, here’s what grocery costs would look like:

      TANF Grants No Longer Cover the Cost of Basic Necessities

      How is TANF Funded?

      TANF is funded through a mix of federal and state dollars. The federal government provides New Jersey with a fixed annual amount of nearly $403 million in Fiscal Year 2023.[40] That amount has not changed since 1996, meaning its real value has eroded significantly over nearly 30 years. This also means that the funding has not accounted for inflation, shifts in populations, or changes in those eligible for or receiving assistance.[41]

      To access those federal funds, New Jersey must also contribute state money through a requirement known as Maintenance-of-Effort (MOE).[42] MOE rules require states to spend a minimum amount of non‑federal money based on what they invested in pre‑TANF programs in Fiscal Year 1994.[43] For New Jersey, this means maintaining spending at either 80 percent or 75 percent of its 1994 level.[44] The threshold varies depending on two factors:

      • whether the state meets its federal work participation rate, and
      • whether the state provides funding to tribal TANF programs operating within its borders.

       

      New Jersey does not have a tribal TANF program because there are no federally recognized tribes in the state.[45] However, it must still meet federal work participation standards — 50 percent of all families and 90 percent of families with two parents must be engaged in qualifying work activities.[46] In federal Fiscal Year 2024, the state’s MOE spending in TANF and separate programs totaled just more than $1.67 billion.[47]

      Within these broad requirements, states have considerable flexibility in how they use TANF dollars.[48] Funds can support monthly payments, pre‑K programs, job training, and cover a wide range of expenses such as “transportation, child care, or other costs necessary for participating, such as uniforms, books, or supplies.”[49]

      In New Jersey, however, only about five percent of TANF funds go toward direct cash assistance, specifically in the form of monthly grants, for families in crisis.[50] A much larger share is directed toward other programs, including pre-K and refundable tax credits.[51] While this flexibility is valuable, it also means that little TANF funding reaches families in the form of monthly grants when they need it most.

      Is TANF Being Threatened by Federal Cuts?

      Since early 2025, the federal government has been considering significant cuts to the federal TANF program.[52] Because TANF has fixed annual funding, any federal cut would directly reduce the resources available to states. States would then face difficult choices: reduce benefits and services, or use state funds to make up the difference.

      At the same time, the federal government has threatened cuts or already disrupted several other core safety net programs such as the Low Income Home Energy Assistance Program, the Supplemental Nutrition Assistance Program (SNAP), and other programs that many TANF-receiving families rely on to meet basic needs.[53] Instability across these programs, combined with delays in federal funding, risks worsening conditions for New Jersey’s underserved families at a moment when the safety net is already stretched thin.

      Has TANF Been Effective at Reducing Poverty?

      TANF’s monthly grants remain one of the most important tools New Jersey has to lift families out of poverty. Cash assistance has consistently been shown to work: when families receive direct income support, they experience greater stability, children have better health and educational outcomes, and parents are better able to build long‑term economic security.[54] But these benefits only materialize when programs are adequately funded, accessible, and designed to meet real need.

      As it is now, TANF reaches too few families with too little cash support. In the nearly three decades since the 1996 welfare reform, the program has grown increasingly difficult to access, even as the need has not gone away.

      A few numbers show how much ground has been lost:

      • The program reaches far fewer families than it once did. Before TANF replaced AFDC, New Jersey assisted well above the national average of 72 per 100 families in poverty.[55] In 2022-2023, New Jersey served only 11 families per 100, far below the national average of 20.[56]
      • Enrollment is dangerously low, but the need is not. In 2025, TANF served an average of 26,500 people across New Jersey's 21 counties, a sharp drop from nearly 31,300 the previous year.[57]
      • Children have borne the brunt of TANF’s decline. TANF’s decline has eliminated monthly payments to thousands of children statewide, from 163,997 children in 1997 to 20,446 children in 2024, with the steepest count losses in high-poverty counties like Camden, Essex, and Hudson.[58] This is a stark contrast to the reality that one in nine children in New Jersey experiences poverty.[59]

       

      The gap between what TANF could do and what it currently does is felt most by Black and Hispanic/Latinx families, who in Fiscal Year 2023 made up 47.8 percent and 31.9 percent of NJ TANF recipients, respectively.[60] These disparities reflect long-standing racial inequities in income, employment, and wealth — inequities that shape who most needs support from a program like TANF. They also reveal who is too often left without help because of the program’s restrictive design and limited reach, especially in communities that have been historically excluded from economic opportunity.[61] The answer is not to abandon TANF. It is to make it work the way it is supposed to.

      What Reforms Are Needed?

      Efforts to reform TANF have been ongoing in New Jersey for years.[62] Some important changes have already been secured, including a one-time grant increase in state fiscal year 2020 and the repeal of the family cap policy.[63] But broader reform has remained out of reach. A comprehensive bill addressing a wider range of TANF shortcomings has moved through the statehouse year after year without passing.

      The proposals below reflect the core areas where reform advocates and legislators have focused their efforts, and where New Jersey must act to build a stronger, more modern TANF:

      • Raise benefit levels and keep them up with inflation. The most urgent change is increasing the monthly grant amount. The current 2026 maximum benefit covers only a fraction of what it costs to live in New Jersey.[64] The monthly payment should be raised to at least 50 percent of the federal poverty level and New Jersey should adopt an automatic cost‑of‑living adjustment so that grants keep pace with inflation without requiring annual legislative action.[65]
      • Direct more money to cash assistance. New Jersey currently allocates only about five percent of its TANF block grant toward direct cash assistance.[66] That share should be much higher. Prioritizing TANF dollars in the form of monthly grants, rather than diverting them to other programs, would ensure that funds reach families who need immediate support to pay rent, buy food, and cover basic expenses.
      • Update eligibility rules and time limits. Eligibility rules must be modernized so families enter, remain in, and transition off TANF more smoothly. This includes:
        • Raising income and asset limits to reflect today’s costs.[67]
        • Simplifying applications and reducing documentation requirements.[68]
        • Addressing chronic administrative understaffing to improve access.[69]
      • Aligning work requirements with reality. New Jersey’s work requirements exceed federal standards, requiring 35 hours each week for most parents. This is often impossible for families dealing with unstable jobs, irregular schedules, limited child care, or health challenges.[70] Aligning state rules with federal guidelines would reduce unnecessary case closures and better reflect the realities of low‑wage work. Just as important, TANF should treat a broader range of education, training, and earning credentials as core work activities. Recognizing these pathways as fully valid would support long‑term economic progress rather than punishing families for circumstances beyond their control.
      • Fix the benefits cliff. Under current rules, even a modest increase in earnings may trigger a sudden loss of benefits, hurting stability.[71] Expanding the amount of earnings that do not count against benefits would allow families to keep more support as savings as their wages grow. This would give parents the breathing room to build financial stability gradually rather than face an abrupt cutoff the moment their income rises.

       

      Conclusion

      Strengthening TANF is one of the most direct ways the state can lift families out of poverty. But doing that requires confronting decades of policy choices that have steadily narrowed who has access to help and how much they receive.

      State lawmakers have a critical role to play. By raising benefit levels, updating outdated eligibility rules, and redirecting more TANF money toward the families the program was built to serve, New Jersey can build a safety net that meets families where they are. With a stronger TANF, the state can reduce deep poverty by ensuring families in crisis have a floor to stand on.

      End Notes

      [1] NJPP Analysis of U.S. Department of Health and Human Services Federal 2026 Poverty Guidelines to determine the amounts for varying federal poverty levels, Work First New Jersey grant amounts provided through the New Jersey state budget and Department of Human Services, and Bureau of Labor Statistics Consumer Price Index Calculator to consider inflation, Jan. 2026.

      [2] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, Schedule I and Schedule II, 2024.

      [3] Congressional Research Service, The Temporary Assistance for Needy Families (TANF) Block Grant: A Legislative History, Jan. 6, 2025.

      [4] Center on Budget and Policy Priorities, Policy Basics: Temporary Assistance for Needy Families, Mar. 1, 2022.

      [5] Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025.  Lower-Basch, E. and Burnside, A., TANF 101: Block Grant, The Center for Law and Social Policy, Mar. 2025.

      [6] Congressional Research Service, The Temporary Assistance for Needy Families (TANF) Block Grant: A Legislative History, Jan. 6, 2025.

      [7] Lower-Basch, E. and Burnside, A., TANF 101: Block Grant, The Center for Law and Social Policy, Mar. 2025.

      [8] Floyd, Ife, et al., TANF Policies Reflect Racist Legacy of Cash Assistance, Center on Budget and Policy Priorities, Aug. 4, 2021.

      [9] Note that the state’s TANF program is often referred to as WFNJ/TANF or simply TANF.

      [10] Justia Regulations, NJ Admin Code 10:90-1.1, Jun. 16, 2025. Floyd, Ife, et al., TANF Policies Reflect Racist Legacy of Cash Assistance, Center on Budget and Policy Priorities, Aug. 4, 2021.

      [11] NJ Department of Human Services, Work First New Jersey, Jan. 2026.

      [12] NJ Department of Human Services, Work First New Jersey, Jan. 2026.

      [13] National Council on Aging, What is General Assistance and Who Qualifies for it?, Aug. 16, 2024. Schott, L., General Assistance Programs Very Limited in Half the States and Nonexistent in Others, Despite Need, Center on State on Budget and Policy Priorities, Jul. 22, 2020.

      [14] People who receive Supplemental Security Income (SSI), which provides monthly payments to individuals with limited income and resources, including those who are 65 or older, blind, or disabled, are also eligible to apply for emergency assistance. See for example: New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026. Social Security Administration, Supplemental Security Income (SSI) in New Jersey, 2026.

      [15] New Jersey’s TANF program has seen some changes throughout the years, but these changes were too specific and limited in nature. See for example: Center on Budget and Policy Priorities, States Should Follow New Jersey: Repeal Racist “Family Cap”, Oct. 14, 2020. Department of Human Services, Murphy Administration Boosts Payments for Families & Individuals in Need, Sep. 4, 2019.

      [16] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, Schedule I, 2024.

      [17] NJ Department of Human Services, Get Work First New Jersey, Jan. 2026.

      [18] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 21, 2024.

      [19] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 24, 2024.

      [20] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 29, 2024.

      [21] States are allowed to extend families’ support beyond the lifetime limit if they fall under certain state-defined categories of “extreme hardship.” Those categories can include serious medical conditions, domestic violence situations, and more. However, states can only provide this exemption of the lifetime limit and extension of support for up to 20 percent of their caseload. Families that qualify for New Jersey’s 20 percent extreme hardship category are supported through a separate program funded with state money. New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 12, 19, and 24, 2024.

      [22] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 24, 2024.

      [23] NJ Department of Human Services, Staying on Work First New Jersey, Jan. 2026.

      [24] NJ Department of Human Services, Get Work First New Jersey, Jan. 2026.

      [25] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 15, 2024.

      [26] Floyd, Ife, et al., TANF Policies Reflect Racist Legacy of Cash Assistance, Center on Budget and Policy Priorities, Aug. 4, 2021. Floyd, I., States Should Follow New Jersey: Repeal Racist “Family Cap”, Center on Budget and Policy Priorities, Oct. 14, 2020.

      [27] Covert, B., New Jersey, Birthplace of Welfare Family Caps, Has Finally Repealed Them, TalkPoverty, Oct. 16, 2020.

      [28] Floyd, I., States Should Follow New Jersey: Repeal Racist “Family Cap”, Center on Budget and Policy Priorities, Oct. 14, 2020.

      [29] Patel, U. and Shrivastava, A., Reproductive Justice and TANF: Repealing “Family Cap” Policies Promotes Economic Justice and Family Autonomy, Center on Budget and Policy Priorities, Dec. 19, 2023.

      [30] Covert, B., New Jersey, Birthplace of Welfare Family Caps, Has Finally Repealed Them, TalkPoverty, Oct. 16, 2020.

      [31] Floyd, I., States Should Follow New Jersey: Repeal Racist “Family Cap”, Center on Budget and Policy Priorities, Oct. 14, 2020. Floyd, Ife, et al., TANF Policies Reflect Racist Legacy of Cash Assistance, Center on Budget and Policy Priorities, Aug. 4, 2021. Patel, U. and Shrivastava, A., Reproductive Justice and TANF: Repealing “Family Cap” Policies Promotes Economic Justice and Family Autonomy, Center on Budget and Policy Priorities, Dec. 19, 2023. New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, pg. 24, 2024.

      [32] New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, Schedule I and Schedule II, 2024. State of New Jersey, The Governor’s FY 2027 Budget: Detailed Budget, pg. D-244 - pg. D-245, Mar. 2026.

      [33] NJPP Analysis of New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, Schedule I and Schedule II, 2024.

      [34] Massachusetts Institute of Technology, Living Wage Calculation for New Jersey, Feb. 28, 2026.

      [35] NJPP Analysis of U.S. Department of Health and Human Services Poverty Guidelines for 2026 to determine the amounts for varying federal poverty levels, Jan. 2026.

      [36] NJPP Analysis of U.S. Department of Health and Human Services Federal Poverty Guidelines for 2026 to determine the amounts for varying federal poverty levels, Work First New Jersey grant amounts provided through the New Jersey state budget and Department of Human Services, and Bureau of Labor Statistics Consumer Price Index Calculator to consider inflation, Jan. 2026.

      [37] Department of Human Services, Murphy Administration Boosts Payments for Families & Individuals in Need, Sep. 4, 2019. Holom-Trundy, B., Adjusting Work First New Jersey Eligibility Would Help Tackle Child Poverty, New Jersey Policy Perspective, Feb. 14, 2022. Holom-Trundy, B., Expand Anti-Poverty Programs to Help Families in Crisis, New Jersey Policy Perspective, Jan. 22, 2025.

      [38] NJPP Analysis of New Jersey Department of Human Services New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026 of grant amounts on Schedule II and Bureau of Labor Statistics Consumer Price Index Calculator to consider inflation, Jan. 2026.

      [39] Department of Human Services, Murphy Administration Boosts Payments for Families & Individuals in Need, Sep. 4, 2019

      [40] Center on Budget and Policy Priorities, New Jersey TANF Spending, Jan. 16, 2026.

      [41] Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025. Congressional Research Service, The Temporary Assistance for Needy Families (TANF) Block Grant: A Legislative History, Jan. 6, 2025.

      [42] Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025.

      [43] Administration for Children & Families, Categories and Definitions for TANF and MOE Funds, Nov. 13, 2020. Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025.

      [44] Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025.

      [45] Administration for Children & Families, Help for Families: TANF Program Contact Information, Accessed Mar. 23, 2026.

      [46] Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025.

      [47] Administration for Children & Families, TANF Financial Data - FY 2024, Jan. 22, 2026.

      [48] Congressional Research Service, Temporary Assistance for Needy Families (TANF) Block Grant: A Primer, Aug. 26, 2025. Congressional Research Service, The Temporary Assistance for Needy Families (TANF) Block Grant: A Legislative History, Jan. 6, 2025.

      [49] NJ Department of Human Services, Get Work First New Jersey, Jan. 2026.

      [50] Center on Budget and Policy Priorities, New Jersey TANF Spending, Jan. 16, 2026.

      [51] Administration for Children & Families, TANF and MOE Spending and Transfers by Activity, FY 2024: New Jersey, Nov. 21, 2025.

      [52] Luhby, T., Trump is freezing funds for small but key welfare program. Here’s what TANF does, CNN, Jan. 7, 2026. Schmit, S. and Wilensky, R., Cuts to SSBG, TANF Would Eliminate Child Care for 40K Children, Disrupt Care for Millions More, The Center for Law and Social Policy, Mar. 2026,

      [53] Macartney, S. and Ghertner, R., How Many People that Receive One Safety Net Benefit Also Receive Others?, U.S. Department of Health and Human Services, Jan. 20, 2024. Lucas, A. and Repko, M., Proposed SNAP cuts could pressure low-income shoppers — and retailers that serve them, CNBC, Apr. 16, 2025. Harvard Kennedy School, Explainer: Understanding the SNAP program—and what cuts to these benefits may mean, Nov. 10, 2025. Picchi, A. and Cunningham, M., Low-income families face a financial cliff as government shutdown threatens 4 federal aid programs, CBS News, Oct. 31, 2025.

      [54] Haider, Areeba, et al., Re-Envisioning TANF: Toward an Anti Racist Program That Meaningfully Serves Families, Georgetown Center on Poverty and Inequality, Oct. 20, 2022.

      [55] Center on Budget and Policy Priorities, Trends in State TANF-to-Poverty Ratios, Oct. 1, 2025.

      [56] Center on Budget and Policy Priorities, Trends in State TANF-to-Poverty Ratios, Oct. 1, 2025.

      [57] NJ Department of Human Services, Current Program Statistics - December 2025, Table 1, Mar. 2026.

      [58] NJPP analysis of ACNJ 1998 Kids Count data and DFD 2024 Current Program Statistics data, all years are for enrollment in June. Small Area Income and Poverty Estimates (SAIPE) data for poverty under age 18 for years 1997 and 2024.

      [59] U.S. Census Bureau, Poverty Status in the Past 12 Months, American Community Survey, ACS 1-Year Estimates Subject Tables, Table S1701, Sep. 2024.

      [60] Administration for Children & Families, Characteristics and Financial Circumstances of TANF Recipients, Fiscal Year 2023, Table 10, Oct. 3, 2024.

      [61] Aguas, T., Census 2024: Economic Gains Bypass Many New Jersey Communities, New Jersey Policy Perspective, Oct. 21, 2025.

      [62] Symons, M., Major overhaul of NJ’s welfare program passed by Senate, NJ 101.5, Apr. 14, 2020. Koball, H. and Hartig, S., Op-Ed: NJ’s TANF program falls short in supporting families in poverty, NJ Spotlight News, May 31, 2022. Castro, R., Promoting Equal Opportunities for Children Living in Poverty, New Jersey Policy Perspective, Apr. 2020.

      [63] Department of Human Services, Murphy Administration Boosts Payments for Families & Individuals in Need, Sep. 4, 2019. Covert, B., New Jersey, Birthplace of Welfare Family Caps, Has Finally Repealed Them, TalkPoverty, Oct. 16, 2020.

      [64] NJPP Analysis of TANF benefit amounts and 2026 federal poverty levels. See for example: U.S. Department of Health and Human Services Poverty Guidelines for 2026 to determine the amounts for varying federal poverty levels, Jan. 2026. New Jersey Department of Human Services, New Jersey State Plan for Temporary Assistance for Needy Families (TANF) FFY 2024 - FFY 2026, Schedule I and Schedule II, 2024.

      [65] Azevedo-McCaffrey, D. and Aguas, T., Continued Increases in TANF Benefit Levels Are Critical to Helping Families Meet Their Needs and Thrive, Center on Budget and Policy Priorities, Feb. 26, 2025. Castro, R., Promoting Equal Opportunities for Children Living in Poverty, New Jersey Policy Perspective, Apr. 2020.

      [66] Center on Budget and Policy Priorities, New Jersey TANF Spending, Jan. 16, 2026.

      [67] Burnside, A. and Fairbanks, J, Eliminating Asset Limits: Creating Savings for Families and State Government, The Center for Law and Social Policy, Oct. 2023.

      [68] There is no recent published research examining New Jersey TANF participants’ experiences with WorkFirst NJ specifically. However, studies from other states offer insight into how participation rules and administrative processes can shape families’ ability to remain on the program. Qualitative research from Illinois documents that many TANF recipients experience the program as difficult to navigate, with complex work requirements and procedural hurdles contributing to case closures. While these findings do not describe New Jersey’s system, they illustrate broader patterns in how TANF’s design can create barriers for families. See for example: Heartland Alliance, Resigned to the Process: Barriers to Accessing and Maintaining TANF among Low-Income Families with Young Children in Illinois, 2022.

      [69] Holom-Trundy, B., Outdated and Ineffective: Why New Jersey Needs to Update Its Top Anti-Poverty Program, New Jersey Policy Perspective, May 22, 2025.

      [70] There is no recent published research examining New Jersey TANF participants’ experiences with WorkFirst NJ specifically. However, studies from other states offer insight into how participation rules and administrative processes can shape families’ ability to remain on the program. Qualitative research from Illinois documents that many TANF recipients experience the program as difficult to navigate, with complex work requirements and procedural hurdles contributing to case closures. While these findings do not describe New Jersey’s system, they illustrate broader patterns in how TANF’s design can create barriers for families. See for example: Heartland Alliance, Resigned to the Process: Barriers to Accessing and Maintaining TANF among Low-Income Families with Young Children in Illinois, 2022.

      [71] Stevens, W., Mitigating TANF Benefits Cliffs, National Conference of State Legislature, Mar. 1, 2024.

      Who Pays for a Per-Employee Medicaid Fee?

      Posted on by Peter Chen

      A fee tied to individual employees’ health coverage will encourage employers to find loopholes and harm workers.

      That’s the core problem with Governor Mikie Sherrill’s proposal to charge large employers based on how many of their workers are enrolled in NJ FamilyCare, the state’s Medicaid program. In her first state budget address, Gov. Sherrill proposed collecting fees from employers who have 50 or more workers with Medicaid coverage. The fee would reportedly charge $325 to $725 per employee, depending on the number of employees.

      In the wake of deep federal cuts to Medicaid, states — including New Jersey — are scrambling to protect their investments in affordable health care. Those revenue-raising proposals should focus on ensuring that wealthy individuals and corporations pay for health care, while protecting residents enrolled in Medicaid.

      Support for Health Care Programs Must Avoid Punishing Covered Workers

      While an assessment on employers to pay for employees’ Medicaid coverage might sound like an attractive way to tax big businesses to support health care, the problems with a fee structured as a charge per employee raise serious concerns. A fee designed around individual employees’ coverage in NJ FamilyCare could:

      • Discourage employers from hiring workers who have or might enroll in NJ FamilyCare. Workers who need health coverage most would face the greatest barriers to employment. Employers could screen out job applicants they perceive as likely to need Medicaid, creating discrimination against workers from low-income backgrounds.
      • Cause workers and their families to hesitate to enroll in NJ FamilyCare, even when they are eligible. Similar to immigrant residents’ fears about public charge rules — rules that can deny visas and green cards based on expected enrollment in certain government programs — this unfairly puts the burden on residents to take unnecessary risks in order to avoid even the potential of punishment.
      • Create and worsen stigma around NJ FamilyCare and other state-run health care programs. This could push residents toward employer-based health coverage, despite its drawbacks like its varying quality and inability to transfer with job changes. This concern affects workers in low-wage jobs and temporary positions most.

       
      This fee structure treats workers with NJ FamilyCare as a problem to solve rather than residents seeking quality coverage. It pressures workers to accept potentially lower-quality coverage options through their employer. Workers might also feel stuck, tied to any job they have coverage for, even if they are enduring poor working conditions and are eligible for Medicaid. Ultimately, the fee does nothing to expand coverage options to help the 727,000 uninsured New Jerseyans, nor does it improve the affordability of coverage for workers.

      Existing State Tools Can Build Broad-Based Support for NJ FamilyCare

      At a time when costs are rising and families across the state are struggling with affordability, state leaders should focus on ensuring corporations and wealthy residents are paying their fair share for public goods. This includes building broader, more sustainable funding support for NJ FamilyCare and expanding coverage options for all residents. Long-term support for residents’ health care would eliminate funding loopholes and make it easier, rather than more difficult, for New Jerseyans to enroll in coverage and remain covered, even when life circumstances change.

      New Jersey already has the tools to more sustainably fund NJ FamilyCare in the long term. Using these tools to build a broader base of support for programs would be more efficient and effective in ensuring long-term fiscal stability. In particular, policymakers should increase revenue from the Corporation Business Tax by closing loopholes, eliminate unnecessary tax credits for big businesses, and discourage and punish tax avoidance strategies. These efforts could raise similar amounts of revenue to fund Medicaid and improve the state’s fiscal stability through an uncertain future.

      Opening the Door to Opportunity with Family Tax Credits

      Posted on by Peter Chen

      Thousands more New Jersey families could afford child care, groceries, and rent if state lawmakers expand two proven tax credits: the Child Tax Credit and the Earned Income Tax Credit.

      Governor Sherrill opened her governorship with a call to keep “the door to opportunity open” for New Jersey families. Expanding these credits would deliver on that promise by putting money directly in families’ hands to help cover the cost of raising children – which the governor recognized by placing Child Tax Credit and Earned Income Tax Credit expansion in her campaign platform.

      The Child Tax Credit and Earned Income Tax Credit have already put thousands of dollars back into New Jersey family bank accounts, reducing poverty and helping cover the cost of raising children. But these programs still leave out many households, due to child age, tax filer citizenship, or other eligibility requirements.

      New Jersey Policy Perspective (NJPP) proposes common-sense changes that would assist New Jersey families directly by putting cash in their pockets. If Governor Sherrill wants to address affordability, expanding these credits is one of the more effective ways to help families meet everyday costs.

      Increasing these credits and expanding eligibility would ensure all families can access opportunity.

      Changes to New Jersey Tax Policy Would Assist New Jersey Families by Increasing Credit Amounts and Expanding Eligibility

      These programs would expand affordability, fight poverty, and stimulate local economies.

      Lawmakers can expand family tax credits to help families afford basic needs through existing programs, without creating new bureaucracy. While some changes could phase in gradually — as the state did with earlier Earned Income Tax Credit expansions — these credits can deliver relief quickly.

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