The United States Department of Health and Human Services (HHS) recently closed five regional offices, including Region 2 which manages New Jersey, affecting child care, Head Start programs, and child welfare services. This closure took place on April 1. Employees affected by the closure were placed on immediate leave without a clear transition plan. The closure aligns with HHS’s objective to streamline and centralize core functions, resulting in the combination of 10 regional offices into five. Other closed offices were located in Boston, Chicago, San Francisco, and Seattle.
The changes come amid congressional debates on potential cuts to key social programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and school meals, potentially impacting New Jersey's children and families. Federal funding for programs like NJ FamilyCare, which provides health insurance to 1.8 million New Jersey residents, including many children, is also at risk.
The House of Representatives recently passed a Budget Resolution that proposes $1.5 trillion in cuts over the next decade. This includes a directive to the House Energy and Commerce Committee to reduce $880 billion from programs like Medicaid. Potential Medicaid cuts could see New Jersey facing a significant funding shortfall, which the Murphy Administration estimates could be as much as $10 billion.
The Federal Medical Assistance Percentage (FMAP), instrumental in determining funding allocations, is also under review. Changes to FMAP could see the elimination of the 50 percent floor in matching funds, potentially shifting to a 38 percent rate and resulting in a $2.2 - $5.2 billion funding loss for the state.
Reduction in federal support could also impact programs for foster care, adoption, and kinship guardianship, among others. The state’s Children’s System of Care, serving over 38,000 children with behavioral health issues, could face a $38.9 million budget shortfall if federal funding diminishes.
Furthermore, the House Agriculture Committee's instruction to cut $230 billion could also reduce funding for SNAP and school meals. Already, the continuing resolution has decreased New Jersey’s local food program funding by $26 million.
More information on the changes can be accessed via ACNJ's Medicaid Matters webinar.
