New Jersey Fights to Keep Medicaid Enrollees Covered Amid Federal Changes

State invests $10 million to strengthen enrollment systems before new Trump-era rules take effect

Mar. 30, 2026 at 5:00pm

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New Jersey officials are working to ensure as many eligible Medicaid members as possible can keep their health insurance when changes ordered by the Trump administration take full effect in January. Gov. Mikie Sherrill's $60.7 billion budget proposal includes over $10 million to strengthen the state's Medicaid enrollment system before the new rules require members to regularly submit more documentation to prove eligibility.

Why it matters

The federal policy changes could result in as many as 350,000 New Jerseyans losing Medicaid coverage due to the additional red tape. Experts predict that nationwide, up to 10 million people could lose coverage, with two-thirds being between 50-64 years old, over half living with a disability or in poor health, and nearly three-quarters being self-employed or having a child under 14.

The details

The new rules, set to take effect in January, will require low-income Medicaid members who are not disabled to document that they spend at least 20 hours a week working, in school, or volunteering. They will also need to prove financial eligibility twice a year instead of once. New Jersey officials acknowledge the state's Medicaid enrollment system needs upgrades to handle the increased paperwork and data matching required to keep eligible members enrolled.

  • The federal policy changes are set to take full effect in January 2027.
  • Gov. Sherrill included the $10 million in funding for Medicaid enrollment system upgrades in her fiscal year 2027 budget proposal.

The players

Gov. Mikie Sherrill

The Democratic governor of New Jersey who proposed over $10 million in her state budget to strengthen Medicaid enrollment systems ahead of the federal changes.

Stephen Cha

The New Jersey Human Services Commissioner, who previously worked on Medicaid at the federal level and has said his priority is 'program integrity and stability' to keep eligible people enrolled.

Katherine Hempstead

A senior policy advisor at the Robert Wood Johnson Foundation, which funded a study showing that even if New Jersey takes significant action, over 150,000 people are likely to lose Medicaid coverage.

Gregory Paulson

The CEO of the Trenton Health Team, a nonprofit that works closely with Medicaid and is helping the state fine-tune its messaging to members.

Colleen McCauley

The director of policy and advocacy at the Camden Coalition, one of the state's 'health hubs' that works with Medicaid, hospitals, and local nonprofits to coordinate care.

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What they’re saying

“It's up to us, as a community, here in New Jersey. The final magnitude of coverage losses will depend largely on how effectively our systems perform.”

— Stephen Cha, Human Services Commissioner

“To prevent that, this budget invests in new technology to help people meet Trump's burdensome paperwork requirements.”

— Gov. Mikie Sherrill

“The more of this you can do automatically through data matching, the less coverage loss there will be.”

— Katherine Hempstead, Senior Policy Advisor, Robert Wood Johnson Foundation

“We have to keep flying the plane while we are rebuilding it.”

— Gregory Paulson, CEO, Trenton Health Team

“At the Camden Coalition, we never stopped calling people.”

— Colleen McCauley, Director of Policy and Advocacy, Camden Coalition

What’s next

The governor's $60.7 billion budget proposal is now in the hands of state lawmakers, who must craft and adopt a final budget before fiscal year 2027 begins on July 1.

The takeaway

New Jersey is taking proactive steps to minimize the impact of the federal Medicaid changes on its residents, investing in technology upgrades and outreach to keep as many eligible people enrolled as possible. However, experts warn that significant coverage losses are still likely, underscoring the challenges states face in navigating these policy shifts.