Dear Commissioner Cha and the DHS team:
Thank you for this opportunity to provide testimony on the FY 2028 budget for the Department of Human Services. My name is Jennifer Spiegel, and I am a policy analyst at New Jersey Policy Perspective (NJPP). NJPP is a nonpartisan, nonprofit think tank that focuses on policies that can improve the lives of low- and middle-income people, strengthen our state’s economy, and enhance the quality of life in New Jersey.
The New Jersey Department of Human Services (DHS) plays a central role in ensuring that all residents, particularly the most vulnerable, can meet their basic needs, from accessing affordable health care and putting food on the table to obtaining essential supports and services. That mission carries higher stakes this year as the Trump administration’s immigration policies create fear and discourage immigrant communities from accessing essential services, while federal cuts threaten health care and food assistance programs. As these policies create new barriers and deepen existing inequities, New Jersey must strengthen its commitment to protecting all residents and ensuring that no one is left without the basic necessities they need to live healthy, safe, and dignified lives.
In its FY28 budget requests, the Department must prioritize protecting access to health coverage, food assistance, and other essential supports, defending immigrant families, and supporting legislative efforts to expand these programs and strengthen the safety net.
Protect Access to Affordable Health Care
H.R. 1 eligibility restrictions have already removed more than 10,000 noncitizen residents(opens in new tab) from the Medicaid rolls. Starting January 1, new federal work requirements threaten to leave more New Jersey residents uninsured and create additional barriers to maintaining coverage. Protecting access to affordable health care must remain a top priority for the Department in its FY28 budget and policy agenda:
- Maintain funding for Cover All Kids to preserve access to affordable health coverage for children, regardless of immigration status, and recommit to these families through more outreach and stronger privacy protections so that information immigrant families provide when they apply for, enroll in, or use state programs is used only to run those programs and is never shared for immigration enforcement.
- Establish a Basic Health Program in New Jersey by supporting S4687/A5743 and submitting a Blueprint to CMS under Section 1331 of the Affordable Care Act. A Basic Health Program would give people whose incomes fall just above the Medicaid eligibility threshold a more affordable coverage option and bring new federal funding into New Jersey’s health care system at a time when the state stands to lose $3 billion(opens in new tab) in federal Medicaid dollars in FY28.
- Fund a public option open to all residents, regardless of immigration status or age, to ensure that people shut out of the marketplace and Medicaid can find affordable insurance options.
- Develop a Medicaid Bridge Program to provide temporary health coverage to individuals who lose Medicaid coverage due to administrative barriers or reporting requirements associated with new federal work requirements.
- Create a user-centered Medicaid member interface that allows new applicants and current members undergoing renewal to easily upload required documents, track application and renewal status, and receive updates on outstanding requirements to reduce administrative barriers and prevent unnecessary coverage losses.
2. Fund Anti-Poverty Programs to Meet the Affordability Crisis
As prices rise and working families struggle every day with the cost of living, the Department must continue to support safety net programs, including the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).
- Raise TANF benefit levels to reflect real costs. TANF benefits have not been raised in seven years and have lost more than one-third of their value since 1998. As costs rise, New Jersey families fall further behind on basic necessities and economic stability. The Department should increase grants to at least 50 percent of the federal poverty level, establish an automatic annual cost-of-living adjustment, and shift more TANF funding toward direct cash assistance for families. The first year of a phased increase to 50 percent of the federal poverty level would cost about $36 million in FY28.
- Ensure counties have the resources to administer SNAP and TANF by providing counties with the funding, staffing, technology, and administrative support needed to manage increased program demands, absorb new federal cost-shifting requirements, reduce payment error rates, and ensure eligible residents can access and maintain benefits without unnecessary delays or barriers.
3. Defend, Shield, and Support New Jersey’s Immigrant Communities
Federal policy changes threaten the safety and security of New Jersey’s immigrant communities. The state must protect immigrant families and give them the same support every New Jersey family receives. To respond to escalating federal actions, the Department should:
- Support legislation to codify the Office of New Americans (ONA) and fund its staff so it can continue to coordinate immigrant services and resources across the state, regardless of changes in federal policy.
- Maintain funding for legal services such as the Detention and Deportation Defense Initiative (DDDI) and legal services for unaccompanied minors. The Department should keep administrative requirements for legal services providers to a minimum so they can access funding quickly and deliver legal services without interruption.
- Improve language access coordination among state agencies by continuing to fund the state’s language access initiative and making translation funds available to every agency. Families who fear federal enforcement need accurate information in a language they understand.
We thank Commissioner Cha and the entire Department for their continued work to support New Jersey residents and ensure that families across the state can access the services and resources they need. We recognize the significant challenges DHS faces amid federal funding cuts and policy changes and appreciate the Department’s ongoing efforts to protect the state’s safety net.
We encourage the Department to consider these recommendations, along with the findings and policy solutions outlined in NJPP’s reports on TANF and Medicaid work requirements, as it makes its FY28 budget decisions.[1] To fund these services, NJPP urges the administration to consider a range of revenue options outlined in our 2024 report.[2] We look forward to continuing to work with DHS to strengthen programs that protect our most vulnerable residents and ensure all New Jerseyans can meet their basic needs.
Thank you for your time and consideration.
End Notes
[1] New Jersey Policy Perspective, , A Safety Net in Retreat: An Obstacle Course Known as TANF, 2026; New Jersey Policy Perspective, Medicaid Work Requirements: Barriers by Design, 2026.
[2] New Jersey Policy Perspective, Fair and Square: Changing New Jersey’s Tax Code to Promote Equity and Fiscal
Responsibility, 2024.
