An estimated 15,000 to 25,000 legal immigrants in New Jersey are expected to lose access to Medicaid coverage beginning in October 2026, according to the state Department of Human Services.
According to NJ Spotlight News, the projected losses stem from a federal law signed on July 4 by President Donald Trump that includes sweeping tax and spending cuts. It narrows eligibility for federal Medicaid benefits, removing coverage from a number of immigrant categories previously included in the program. Legal permanent residents and individuals from specific nations, such as Cuba, Haiti and select Pacific islands, are among those who will retain access.
New Jersey is home to more than 2 million immigrants, over three-quarters of whom are legally present. The policy change is expected to particularly affect refugees, victims of domestic violence and survivors of human trafficking.
In addition to immigrant restrictions, the law imposes work requirements and limits hospital assistance under Medicaid. State officials estimate the changes could push up to 350,000 New Jerseyans off Medicaid. It could cost the state more than $3 billion annually according to some estimates.
Despite the cuts, New Jersey will continue funding its “cover all kids” initiative, which provides state-supported health insurance to undocumented children who meet income thresholds. While initial federal proposals sought to penalize states offering such plans, the final bill did not include that provision. The program currently covers about 47,000 children and is budgeted at $164 million for the current fiscal year.
State agencies and advocacy groups are preparing to communicate the upcoming changes to affected populations. Officials say they are also exploring alternative options for those expected to lose Medicaid access, including lower-cost coverage and expanded state-level programs.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.