Federal funds play a crucial role in supporting state government services that protect and provide for New Jerseyans. Because of this funding, New Jersey can ensure clean water flows from the tap, children receive healthy meals at schools, state departments can repair roads and rail lines, and residents can access routine medical checkups. In fact, nearly one-third of New Jersey’s budget expenditures depend on federal funds, meaning that federal budget cuts would inevitably lead to reductions in state agency funding and essential services that families rely on.
New Jersey’s State Departments Depend on Federal Funding
New Jersey’s state departments administer essential programs, acting as the clearinghouse for billions in federal funding.
The three state departments most reliant on federal dollars (by percentage of their budget) are:
- Department of Agriculture,
- Department of Labor and Workforce Development, and
- Department of Environmental Protection.
Specifically, these departments administer critical programs, including:
- Department of Agriculture: Administers SNAP (Supplemental Nutrition Assistance Program, formerly food stamps), which helps more than 800,000 New Jerseyans afford food to feed their families;
- Department of Labor: Oversees unemployment insurance and job assistance programs;
- Department of Environmental Protection: Manages air pollution control and water supply protection.
Feeding families and children, helping people get jobs, and keeping the air clean are essential services that federal cuts could put at risk. If Congress slashes federal funding, these departments may be forced to lay off workers and scale back operations, directly harming New Jersey residents.
Top Federal Programs in New Jersey
New Jersey’s state budget also relies on several multi-billion dollar federal grants earmarked for specific programs that fund key services supporting state residents.
- Department of Human Services: Administers Medicaid/CHIP and TANF, helping families with low to no income access health care and cash assistance.
- Department of Transportation: Receives nearly $2 billion in federal funding to build and maintain state and local roads, improving accessibility and safety for people with disabilities, pedestrians, and cyclists.
These programs receive some of the largest federal grants, playing a crucial role in improving the quality of life for New Jerseyans.
With the state budget already facing a structural deficit, New Jersey must push back against federal funding cuts that could weaken its ability to deliver essential services to residents.
