Winifred Smith-Jenkins Director of Early Learning Policy and Advocacy | Advocates for Children of New Jersey
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New Jersey Review | May 20, 2025

House passes budget bill impacting Medicaid and SNAP

Last Thursday, the U.S. House of Representatives passed the "One Big Beautiful Bill Act" with a vote split along party lines, 215 Republicans to 214 Democrats. The bill now advances to the U.S. Senate for further consideration. If enacted, H.R. 1 is expected to significantly impact NJ FamilyCare and the Supplemental Nutrition Assistance Program (SNAP).

Mary Coogan, President/CEO of ACNJ, highlighted concerns about the potential consequences on Medicaid and SNAP in New Jersey. Almost 20% of New Jersey residents rely on NJ FamilyCare for health insurance coverage, which includes over 860,000 children.

The bill proposes several changes affecting Medicaid: imposing an 80-hour work or community engagement requirement for individuals aged 19 to 64 by December 31, 2026; reducing retroactive coverage for Medicaid and CHIP from three months to one month; requiring eligibility redetermination every six months; freezing provider taxes; mandating co-pays for certain Medicaid expansion adults; and penalizing states that provide healthcare to undocumented immigrants.

Regarding SNAP, nearly 360,000 children in New Jersey currently participate in the program. H.R. 1 aims to cut spending by $267 billion over ten years by shifting costs to states and altering eligibility requirements.

The bill also contains provisions related to tax credits and student loans. It proposes temporary increases in the Child Tax Credit and standard deduction amounts while setting new requirements for eligibility. Additionally, it suggests changes in Pell Grant eligibility and federal loan programs.

Coogan stated that these measures could have serious repercussions on families across New Jersey if H.R. 1 becomes law.

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