NJ Spotlight News
Bracing for Medicaid cuts in NJ
Clip: 7/7/2025 | 4m 46sVideo has Closed Captions
As Trump lauds tax-cut law, NJ officials and Medicaid users fear services will be slashed
President Trump highlighted tax cuts in legislation he signed July 4. The tax cuts will be paid for by reductions in spending, primarily on social safety-net programs like Medicaid. "The largest spending cut — $1.7T — and yet you won’t even notice it — just waste, fraud and abuse!" Trump promised. Jonathan Chebra, deputy commissioner at the NJ Department of Human Services, disagrees.
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NJ Spotlight News is a local public television program presented by THIRTEEN PBS
NJ Spotlight News
Bracing for Medicaid cuts in NJ
Clip: 7/7/2025 | 4m 46sVideo has Closed Captions
President Trump highlighted tax cuts in legislation he signed July 4. The tax cuts will be paid for by reductions in spending, primarily on social safety-net programs like Medicaid. "The largest spending cut — $1.7T — and yet you won’t even notice it — just waste, fraud and abuse!" Trump promised. Jonathan Chebra, deputy commissioner at the NJ Department of Human Services, disagrees.
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Learn Moreabout PBS online sponsorshipPresident Donald Trump signed into law his massive tax cut and spending bill on the July 4th holiday just one day after the House narrowly passed the controversial measure and sent it to his desk.
This so-called one big beautiful bill makes permanent Trump's 2017 tax cuts and expands funding for immigration enforcement and border security.
It's a big win for the president and his allies who celebrated at a ceremony outside the White House on Friday.
But the bill has been widely criticized for paying for those priorities by cutting funding for food assistance and health care with new requirements that are expected to push millions of Americans off Medicaid.
Here in New Jersey, hundreds of thousands are expected to lose coverage over the next decade, including individuals with disabilities.
Senior correspondent Brenda Flanigan reports.
When the president signed what he called the most popular bill ever on July 4th, he highlighted its sweeping tax cuts paid for by deep reductions in spending aimed primarily at social safety nets like Medicaid.
The largest spending cut, $1.7 trillion.
And yet, you won't even notice it's just waste, fraud, and abuse.
We're talking about kicking 350,000 eligible residents uh off of New Jersey.
Family Care is is not about addressing fraud or waste or abuse.
This really undergurs our our public health system in New Jersey.
Everyone will be affected by that.
State officials warn New Jersey's public health and hospital systems face a $3.3 billion annual cut in federal funding that will slash services.
But Republicans like Congressman Jeff Van Drew, who voted for the bill, argue there will be no loss of Medicaid for legal eligible recipients.
There will be no changes in coverage for those in need of assistance, including kids, expectant moms, seniors, or people with disabilities.
For us, having this Medicaid has been a lifeline.
This Newark mom needs Medicaid services to care for her severely disabled son at home while she's at work.
There is no way no way we'd be able to hold it together if Manny didn't have that private duty nursing and the services and the rest bit that come with Medicaid.
But she says the new law now mandates a 20our work week for able-bodied adults on Medicaid.
And it also makes some reregister for benefits every six months instead of once a year.
Her family mistakenly lost coverage for two months because she says the bureaucracyy's already overwhelmed by paperwork and riddled with errors.
She fears thousands will permanently fall through the cracks.
Is still such a complicated web.
This can mean devastation for so many families that are already exhausted.
They are working hard to the bone and the last thing they need is discouragement in a life that's already hard.
That's exactly what the bill is designed to do is to create bureaucratic barriers to keep otherwise eligible residents off of Medicaid.
But many Republicans regard Medicaid as a flawed and bloated system that needs radical reform.
They welcome the new law.
Speaking to Newsmax, Congressman Steve Scaliz noted those able-bodied adults who are turning down work.
The 35year-old who's sitting at his mom's basement playing video games is going to have to go get a job again.
The political divide remains stark.
So, it's disheartening.
It's It's a grim time.
Gwen Arlowski advocates for New Jerseyians with disabilities.
She says a recent meeting of stakeholders figured the funding cuts could end up reducing options like dental services or home and community- based programs like visiting nurses.
So all of those things I think are are on the table to come into play as the state is going to have to figure out how they're going to run the Medicaid system with so many fewer federal dollars.
The new law takes effect in phases spaced over the next 3 years.
Some recipients would have to pay more out-ofpocket costs starting in 2028, but nobody's seen the new rules yet.
I think it's going to be a really rocky road because I think there's going to be a lot of unknowns as this unfolds.
I think people on expansion Medicaid are going to be at great risk of losing access to Medicaid being terminated.
The new state budget includes a $6.7 billion surplus in part to help cushion federal funding cuts, she says, but nothing of this magnitude.
I'm Brenda Flanigan, NJ Spotlight News.
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