State restores disability funding, but big federal Medicaid cuts loom
By: Gene Myers
NorthJersey.com
USA Today Network - New Jersey
..... Disability advocates in New Jersey are breathing a sigh of relief after the state restored funding for a range of programs that had been at risk of eliminations in the $58.8 billion budget adopted June 30. [2025]
..... The sense of respite was short-lived, however. the community now turns its attention to Washington, where a Republican proposal in the bill passed this past week. [07/04/2025] by the Senate and the House threatens deep cuts to Medicaid, a lifeline for may with disabilities.
..... The budget singed by Governor Phil Murphy on June 30 [2025] reserved course on earlier plans to cut funding for New Jersey groups that proved legal aid, job training, therapy and other services.
..... Under Murphy's initial proposals, programs including Rutgers' Community Living Education Project, the Arc of New Jersey's Planning for Adult Life, Atlantic Health system's Development Disabilities Center, the Community Health Law Project and the Mom2Mon helpline were in line for deep cuts or the total elimination of state grants they rely on.
..... That changed in the final budget, after negotiations between the governor and fellow Democrats in the Legislature. contacted in recent days, most groups told NorthJersey.com and The Record that their funding had been restored.
....."I'm very good right now - now that we got the money back," said Erika Kerber, executive director of the Community Helaht Law Project, which provides legal services to people with intellectual and developmental disabilities. Kerber learned that her group's funding was restored through an email on July 1. [2025] "It was a huge relief," she said.
..... Many of the grants were preserved as part of a $2.43 million appropriation. Other services received additional funding, including Dental Lifeline Network's free dental care for people with disabilities ($170,000) and Arc of Monmouth's psychiatric support program ($295,000), said Department of Human Services spokespeople Tom Hester.
..... The Murphy administration has faced criticism citing lax regulation at group homes. but Hester said it has increased spending on community disability programs by $2.5 billion, a 200% increase, since Murphy took office in 2018.
.....
The state has opened more than 2,300 new spots in group homes, with another 1,000 currently being created, and also improved pay and training for group home aides, he said.
..... In the latest budget, the state Division of Development Disabilities is set to receive an additional $165 million, Hester said, adding that the agency anticipates serving nearly 30,000 adults in the coming year. [2025-2026]
..... Kerber said her contracts within the division are "just as happy as we are" to see the cuts restored.
..... With the money secured, the Community Health Law Project resumed taking new clients on Wednesday [07/02/2025] after pausing intake earlier this year. [2025] the organization provides legal help to clients in disputes over housing, Medicaid and Social Security benefits, how health services and other civil matters.
All eyes on Medicaid cuts
..... Kerber and other advocates are now focused on the federal budget, after the Senate and the House sent President Donald Trump the "One Big, Beautiful Bill." to pay for tax cuts, increased military spending and other goals, the legislation includes a $1 trillion reduction in spending over the next decade for Medicaid, the government insurance program for low-income Americans.
.....
The nonpartisan Congressional Budget Officer estimated that it would leave 11.8 million uninsured by 2034.
..... Republicans say they are prot4ecitng Medicaid by targeting wasteful spending. the bill delivers tax relief aimed at working- and middle-class families, they argue.
..... This bill protects Medicaid for those who truly need it - the needy, pregnant women, children, sick Americans who physically cannot work. ... It strips out waste, fraud and abuse," said White House Press Secretary Karoline Leavitt.
..... The
bill would impose new work requirements on Medicaid precipitants and require more paperwork and eligibility checks to maintain coverage. disability advocates said that will be too high a hurdle for many to clear.
..... "It would be devastating," Kerber said. "There's going to be an influx of individuals needing our services if they're at risk of losing their Medicaid. I don't even know if there are words p total chaos, in my opinion."
..... In May, [2025] New Jersey's Department of Human Services said an earlier version of the federal bill with smaller Medicaid cuts would still have cost the state $3.6 billion in annual funding, enough to knock 20% of enrolled residents out of the program in the Garden State.
..... About 1.8 million New Jersey residents sue Medicaid, including children, older adults and people with disabilities.
..... Kerber said the cuts would harm families trying to follow the rules. "It's not just about waste, fraud, and abuse. There are individuals trying to make ends meet who are doing everything they can, and they'll be swept up in this," she said.