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Federal Funding Cuts Threaten New Jersey’s Residents

Cuts to federal funding for state programs to fund tax breaks for corporations and the ultra-wealthy could harm millions of New Jerseyans.

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Published on Feb 21, 2025 in Tax and Budget

Federal funding is the backbone of many essential public services in New Jersey, supporting health care, food assistance, child care, and education. However, recent federal proposals from D.C. include deep cuts to these programs — primarily to finance tax breaks for corporations and the ultra-wealthy.

These cuts would have devastating consequences for the state’s most vulnerable residents — including immigrant communities, people with disabilities, low-income families with young children, and older adults on fixed incomes. 

New Jersey’s schools, hospitals, and bridges depend on federal funding

New Jersey receives nearly $30.8 billion in federal funds, many of which support critical programs for families and the state’s economy, according to recent data from the Center on Budget and Policy Priorities.

Many of these funds are passed through the state budget to individuals and programs, so even small disruptions in federal funding may lead to child care providers and soup kitchens closing their doors permanently or families being cut off from food or heating assistance.

Millions of New Jersey households count on federally funded programs

Whether programs and services are administered by federal, state, or local governments, federal grants flow to millions of households and families across New Jersey. This aid translates into health insurance and health care, preschool and child care, school meals and special education funding, and affordable housing — foundational supports to help every family succeed.

At a time when families are struggling to afford necessities like housing, food, and healthcare, any cut to these and other federal programs will directly harm hundreds of thousands of people. With the state budget facing its own structural deficit of more than $2.1 billion, federal cuts now would further hamper the state government’s ability to assist New Jerseyans. To safeguard the stability of New Jersey and support affordability for families who need it most, policymakers must prioritize protecting and expanding federal investments in public services and maintain an ample surplus to ensure the state can protect its families from harm.

Authors

  • Nicole Rodriguez, President, is an experienced public policy leader who advocates for equitable solutions that center communities’ needs with racial, social, and economic justice.

    Before joining New Jersey Policy Perspective as Research Director, Nicole was senior researcher at Community Labor United (CLU) — an organization that brings community and labor partners together to speak in one voice on issues affecting working families throughout Greater Boston. Nicole drove strategic campaigns with rigorous research and leadership that stabilized and strengthened low-paid families and communities of color.

    Before that, Nicole worked as senior policy analyst for the Massachusetts Budget and Policy Center, an independent research organization that produces nonpartisan policy research, analysis, and data-driven recommendations to improve the lives of low- and middle-income residents and strengthen the state’s economy. Nicole wrote numerous reports focusing on family economic security and the state budget.

  • Peter Chen, Senior Policy Analyst, has worked on child and family policy advocacy in New Jersey since 2014. Most recently, he coordinated New Jersey’s nonprofit campaign for a complete count of the 2020 Census. Additionally, Peter has written reports on topics including: childhood lead poisoning prevention, chronic absenteeism from school, teacher certification, and summer meals.

    Prior to New Jersey Policy Perspective, Peter was Policy Counsel at Advocates for Children of New Jersey, where he also served as a Skadden Fellow from 2014-16. Peter received his JD from Yale Law School and his Bachelors of Arts from Indiana University-Bloomington. He served as a law clerk for Chief Justice Shirley Abrahamson of the Wisconsin Supreme Court.