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New Jersey facing devastating federal funding cuts to critical programs that support children and families

Posted on April 2, 2025

Mary E. Coogan, Esq.,
ACNJ President/ CEO

Mary E. Coogan, Esq.
ACNJ President/CEO

On April 1st, five regional offices within the US Department of Health and Human Services (HHS) were closed, including ๐‘๐ž๐ ๐ข๐จ๐ง ๐Ÿ ๐ฐ๐ก๐ข๐œ๐ก ๐ ๐จ๐ฏ๐ž๐ซ๐ง๐ฌ ๐๐ž๐ฐ ๐‰๐ž๐ซ๐ฌ๐ž๐ฒ. These offices support child care and Head Start programs, and child welfare services. All staff who worked in these regional offices were placed on leave effective immediately and no longer have access to their files or offices. No transition plan was shared with staff or programs. Rather, this abrupt change only served to increase anxiety and stress. A fact sheet on โ€œHHSโ€™ Transformation to Make American Healthy Againโ€ did not provide much more detail. It is unclear how grants will be administered moving forward, including child care and Head Start grants due to start on ๐Œ๐š๐ฒ ๐Ÿ. The other offices closed were Regions 1 (Boston), 5 (Chicago), 9 (San Francisco), and 10 (Seattle).ย 

This action resulted from the US Department of Health and Human Servicesโ€™ (HHS) effort to make the department โ€œmore responsive and efficient.โ€ On March 27, HHS announced a โ€œdramatic restructuring in accordance with President Trump's Executive Order: Implementing the Presidentโ€™s โ€˜Department of Government Efficiencyโ€™ Workforce Optimization Initiative.โ€ The press release announced a significant staff reduction due to streamlining and centralizing core functions, consolidating divisions, and combining 10 regional offices into five.ย 

At the same time, members of Congress are debating significant cuts to programs like Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and other food programs like school meals. The federal Social Services Block Grant, which supports the work of our Department of Children and Families (DCF), may also be subjected to cuts. Any federal cuts to these programs will significantly impact New Jersey children and families.ย 

Federal and state Medicaid dollars fund NJ FamilyCare, which provides health insurance to 1.8 million people in New Jersey, including 830,000 children, ages 0-18, from low- and moderate-income families and another 80,000 young people, ages 19-21. Medicaid covers almost one-third of the births in New Jersey annually and also covers long-term care for the seriously disabled and elderly. For many families, this coverage is temporary and invaluable during times of crisis. People furloughed or laid off can rely on NJ FamilyCare for coverage so medical bills do not drive them into debt.ย 

In March, the House of Representatives passed a Budget Resolution seeking to cut $1.5 trillion over the next 10 years. To help achieve this goal, members of the House Energy and Commerce Committee, which oversees Medicare and Medicaid, were instructed to cut at least $880 billion from the budget. It is anticipated that most of the committeeโ€™s cuts will have to be from Medicaid.ย ย 

Federal cuts to Medicaid will have a devastating impact on NJ FamilyCare, resulting in a potential loss of $10 billion, according to the Murphy Administration -- funding the state does not have. Several options are being considered, including significant changes to the Federal Medical Assistance Percentage (FMAP), which are the percentage rates used to determine the amount a state receives from the federal government for its Medicaid program. Others are recommending that the federal government shift more administrative costs to states, restrict or eliminate the use of provider taxes and directed payments to health care providers, or impose work reporting requirements that studies have shown are more likely to result in a loss of coverage for many low-income working Americans, resulting in a lack of needed health care or increase in unaffordable medical bills.

The FMAP is determined by a formula based upon a stateโ€™s per capita income. New Jersey currently benefits from a statutory 50 percent floor on matching funds for most Medicaid services. If this โ€œfloorโ€ were eliminated, New Jerseyโ€™s match rate would be closer to 38 percent. The proposals being considered by Congress may result in a loss of $2.2 - $5.2 billion in federal funding to New Jersey.ย 

The FMAP determines the match rate for other federal funding, including foster care, adoption, and kinship legal guardianship subsidies, and DCF prevention programs. Medicaid helps support services provided in schools for students with Individual Education Plans (IEPs). The NJ Childrenโ€™s System of Care (CSOC) provides treatment and support services to over 38,000 children and youth with moderate to severe behavioral health problems and/or intellectual or developmental disabilities, including autism, each month. CSOC services are provided at no cost to families, relying on private health insurance, NJ FamilyCare, and state funds. DCF reports that 69% of children receiving services through CSOC are insured by Medicaid.ย  A reduction in the federal match for Medicaid and the federal Childrenโ€™s Health Insurance Program (CHIP) could create a $38.9 million budget gap for CSOC.ย 

Finally, the House Agriculture Committee has been instructed to cut $230 billion, which could mean a significant reduction in funding for the Supplemental Nutrition Assistance Program (SNAP) and school meals. The continuing resolution currently funding the federal government through September has already cut $26 million in funding that supports New Jerseyโ€™s local food programs.

Watch ACNJโ€™s Medicaid Matters webinar for more details.ย 

Tell Lawmakers What “A Day Without Child Care” Means to You

Posted on April 9, 2025

 

On May 12, parents, early childhood staff and caregivers across New Jersey and the nation will participate in โ€œA Day Without Child Care,โ€ bringing attention to the essential role of our undervalued and underpaid early care and education workforce. Armed with stickers that say โ€œThanks to child care, Iโ€™m at work!โ€, we are asking families to imagine how a day without child care would disrupt their routine and share these moments on social media using #DayWithoutChildCare and #NJVotes4Kids.

Funding New Jerseyโ€™s child care infrastructure is just as essential as funding our roads and railways. Our child care system has been in a long-standing crisis due to a lack of accessibility, staffing shortages, and affordability challenges. Most child care providers generate just enough revenue to keep pace with minimum wage, limiting what they can offer staff and often discouraging qualified individuals from remaining in or entering the field.

As New Jerseyโ€™s legislature deliberates the state budget, a โ€œDay Without Child Careโ€ is a call to action to invest in our children and those who care for them.

Engage with us on social media by commenting, liking, and sharing our Day Without Child Care videos and posts. Below are the videos on facebook, but you can also follow us on Facebook, Instagram, LinkedIn, X, and BlueSky.

It's important that you share your stories about what a day without child care means to you. When you post on social media be sure to tag #ACNJ, #DayWithoutChildCare, and #NJVotes4Kids.

Check out some social media posts from last year's A Day Without Child Care

Signed the Medicaid Petition and Want to do More?

Posted on April 2, 2025

After signing the petition, there are three more things you can do to help protect Medicaid.

  1. Call your lawmakers. Below is a script you can follow when you do so.
  2. Post and tag your lawmakers on social media. Tell them "Hands off Medicaid."
  3. Tell your family, friends, neighbors, colleagues and clients that essential healthcare is at risk! Below are sample social media posts. Click here to share a flyer.

Don't know how to contact your lawmakers? Click here.

Call Script for Contacting Lawmakers

โ€œHello, my name is [Your Name], and I am a resident of [City, NJ]. Iโ€™m calling to urge [Senator/Representativeโ€™s Name] to oppose any Medicaid cuts. Medicaid helps 1.8 million NJ residents, including children, seniors, and people with disabilities. Cuts to Medicaid would be devastating for our communities. Please commit to protecting Medicaid funding. Thank you.โ€

Social Media Sample for Twitter/X Post/BlueSky

ย โ€œ1.8 million NJ residents rely on Medicaid, but Congress is threatening cuts! Tell your reps: NO Medicaid cuts! #ACNJforMedicaid #MedicaidMattersNJ #ProtectMedicaidโ€

Social Media Sample for Facebook/Instagram Post

"Medicaid provides care for children, seniors, and people with disabilities in New Jersey. Cuts could force thousands to lose coverage."

Tag your congressional legislators and tell them, โ€œHands off Medicaid!"

#ACNJforMedicaid #MedicaidMattersNJ #ProtectMedicaidโ€

Find Your Lawmakers

It's easy! View this slideshow to use our legislator look-up tool. It provides contact information, including social media handles if available. When you are ready, click here to access the look-up tool.

Tamil’s Story: Tapping into community resources to build resilience

Posted on March 25, 2025

This is video 3 of the Y.E.S. (Youth Expert Stakeholders) video Series.

Many children grow up with adverse experiences, but community resources can help kids and teens build resilience to survive them. Listen as Tamil discusses his experiences and how he developed his resilience in the face of adversity.