TO: New Jersey State Senate and Assembly
FROM: New Jersey Policy Perspective
DATE: August 7, 2025
SUBJECT: Federal Threats to State Affordability, Essential Services, and Budget Integrity
The recent signing of budget reconciliation bill H.R. 1, also known as the “One Big Beautiful Bill Act” (OBBBA) will have far-reaching and devastating consequences for New Jersey. Combined with other federal rules that are being rapidly rewritten — such as the Marketplace Program Integrity Final Rule — the new law destroys federal funding for critical programs on which the state depends to support residents building their futures and raising their families in the Garden State.
Coming cuts to Medicaid, restrictions on access to affordable health coverage through the GetCovered NJ marketplace, cuts to the Supplemental Nutrition Assistance Program (SNAP), increased costs for student loan borrowers, cuts to climate programs, and increased funding for immigrant detention will harm Garden State families and threaten affordability and the state budget for years to come. Some changes will take effect immediately, while others will create destructive gaps in future state budgets.
Now is the time for lawmakers to protect New Jersey by strengthening our state reserves, identifying new funding sources, and taking proactive protective steps to maintain essential services for residents. Governor Murphy has ordered departments to study the effects of these actions. Some departments warned during this year’s state budget discussions about the coming budget holes and loss of coverage. Lawmakers must recognize these urgent deadlines and act quickly and decisively to prevent the harm to New Jersey families.
Below is a timeline of the most important dates for impending changes that will result in loss of health care coverage, worsened food insecurity, reduced affordability, and increased threats to immigrant communities.
Sincerely,
The New Jersey Policy Perspective Research Team
Brittany Holom-Trundy, Research Director
Alex Ambrose, Climate and Transportation Policy Analyst
Peter Chen, Tax and Budget Senior Policy Analyst
Marleina Ubel, Criminal Legal Systems and Immigrant Rights Senior Policy Analyst
