Murphy says proposed Medicaid cuts could have ‘cascading effects’ for NJ residents

New Jersey Gov. Phil Murphy peaks before signing an executive order in June 2024.
Photo credit Spencer Platt/Getty Images

NEW JERSEY (KYW Newsradio) — Federal funding cuts could slash billions in Medicaid funding from New Jersey. Gov. Phil Murphy held a round table discussion Friday in Lakewood to discuss the potential harms that may follow.

New Jersey received $14 billion for Medicaid in 2024, and Murphy says if the government cuts $3.5 billion as proposed, it would have cascading effects.

“These cuts will drill a hole right through these families and these individuals. But it’s not just about them, if you will, this will destabilize our state’s and our country’s entire health care system,” he said.

Several people voiced their concerns, saying they fear they’ll lose some or all of their coverage.

Lauren Williams has a teenage daughter diagnosed with several mental health conditions, including bipolar disorder.

“These are unstable children. Besides, if we’re not getting them to the point where they are stable, you’re now putting mental health, unstable teenagers on the street,” Williams said.

Murphy says the cuts would be a "big whack to Planned Parenthood."

"So it’s across the board betrayal of the people of New Jersey.”

Vanessa Nieto, a mother of three — soon to be four — says Medicaid provided the coverage she and her babies needed.

“So it’s a great help being covered with Medicaid, especially when you have children and you have some health conditions also,” Nieto said.

The budget passed the House of Representatives by one vote, and Murphy says it’s likely to undergo some changes in the Senate.

“Either it will be a little bit worse or a little bit better, but it won’t be a magic wand,” he said.

Republicans say reforms are needed to eliminate fraud, waste and abuse of benefits.

Featured Image Photo Credit: Spencer Platt/Getty Images