With funding from Washington uncertain, New Jersey, like other states, is budgeting cautiously.
Gov. Philip D. Murphy of New Jersey proposed a $58 billion budget on Tuesday that would keep spending roughly flat as the state braces for potentially drastic reductions in federal funding, including Medicaid.
State officials acknowledged that drafting the final budget of Mr. Murphy’s second term had proved challenging amid uncertainty in Washington, where Republicans are considering deep cuts in spending on health care for low-income people to help pay for $4.5 trillion in tax cuts.
New Jersey estimates it could lose as much as $5.2 billion in Medicaid matching funds that help provide health coverage to roughly 700,000 residents.
The New York Times
By Tracey Tully
Feb. 25, 2025