Gibbons SFY 2026 Report: New Jersey Department of Human Services Presents Its FY 2026 Budget Proposal
This is the latest installment in a series of posts that offers a detailed look into the budget proposals for the major departments that constitute the state government. New Jersey Department of Human Services (NJDHS) Commissioner Sarah Adelman recently appeared before the Senate Budget and Appropriations Committee (SBA) and the Assembly Budget Committee (ABU) to present the department’s proposed FY 2026 budget, which totals $10.260 billion. This total is an increase of $283 million or 2.5 percent from the FY 2025 adjusted appropriation. Backdrop of Looming Federal Funding Cuts The impact of the Congressional budget reconciliation on Medicaid was a focus of the hearing, as the New Jersey Medicaid program is valued at $24 billion, which comprises $14 billion in federal share and $10 billion in State share. The federal budget resolution unlocking the reconciliation process required the House Committee on Energy and Commerce to cut a minimum of $880 billion through 2034. Given that Medicaid accounts for approximately 93 percent of non-Medicare spending under the jurisdiction of that House Committee, Medicaid is expected to receive the majority of the cuts. The proposal recently passed by the House seeks these cuts through work requirements, more frequent eligibility checks, and the cutting of federal funds to states that extend coverage to undocumented immigrants. The Commissioner testified...