Good afternoon, Commissioner and DHS team. Thank you for this opportunity to provide testimony on the FY 2026 budget for the Department of Human Services. My name is Dr. Brittany Holom-Trundy, and I am a senior policy analyst at New Jersey Policy Perspective (NJPP). NJPP is a non-partisan, non-profit research institution that focuses on policies that can improve the lives of low- and middle-income people, strengthen our state’s economy, and enhance the quality of life in New Jersey.
With a looming uncertain federal policy landscape, the state’s Department of Human Services provides a critical channel for support for individuals and families. Now more than ever is a time for the state to cement its commitment to that support and ensure that all Garden State families are protected, regardless of possible federal changes. To do this, the Department should prioritize policies that will help to lessen and eliminate daily uncertainty that many working families, immigrants, and low-income residents currently face and may be threatened with in coming years.
In order to provide families with unwavering support, here are five priorities for the Department to consider for next fiscal year.
1. Protect Cover All Kids
Possible federal cuts to programs like Medicaid mean that the state needs to fully commit to keeping all children covered with quality, affordable health insurance through the Cover All Kids program. The Department already uses state funds to cover kids enrolled through the program’s expansion to all children regardless of immigration status, and maintaining that guarantee is crucial. Keeping that connection with immigrant communities at such a fraught time will also require improved and increased outreach efforts, as well as stronger privacy protections. Additionally, if federal reductions cut funding that helps to cover those kids who were already eligible with federal matching, the state must increase its own funding to ensure that no kids become uninsured even if the state must shift funds to fill new gaps.
NJPP urges DHS to ensure that the expansion remains fully funded in FY 2026, that outreach efforts are strengthened, and that privacy considerations are fully protected. This means making sure that state funds continue to cover the over 42,000 newly eligible, enrolled children, and accommodating any further increases in that number (approximately $156 million). It also means increasing funding for outreach efforts, as well as funding any improvements to the privacy protections needed to safely maintain the enrollment of immigrant children.
2. Expand Affordable Health Insurance Options
In addition to possible cuts to programs like Medicaid, other looming possibilities with federal transitions are threats to the Affordable Care Act (ACA), its protections, and its affordable options for low- to middle-income families. To ensure that the progress toward universal coverage over the past decade is not lost, the state must step up to safeguard the ACA’s advancements and lead in providing further coverage options.
By investing in affordable and quality health insurance options, the state can limit the financial impact of federal cuts to services and preserve public health for the Garden State. To do this, NJPP encourages DHS to set the budget so that it can (1) build the final bridges for uninsured children by funding a buy-in option for the children who are not income-eligible for NJ FamilyCare (NJFC) and yet do not qualify for GetCovered NJ coverage due to immigration status; and (2) establish and fund a public option open to all residents, regardless of immigration status or age.
3. Meet Economic Needs with Reforms to Anti-Poverty Programs
Despite the intense coverage on economic issues during and after the federal election, the reality is that the long-running anti-poverty programs funded by the federal government and states remain woefully neglected. Even with low-income residents facing daily economic insecurity, the main programs helping to lift families out of deep poverty — Temporary Assistance for Needy Families (TANF), and, in New Jersey, the full collection of programs under the umbrella of Work First New Jersey (WFNJ) — remain outdated and subject to the punitive stereotypes of 1990s welfare reform. Federal changes may also threaten the existence of these programs. NJPP encourages the Department to consider how to protect the WFNJ programs from federal cuts and make them work for the state’s poorest families.
By investing at least $46 million, the Department can begin the process of gradually increasing the WFNJ monthly grant amount to at least 50 percent of the Federal Poverty Level (FPL) over the next three years, starting with a baseline increase to 34% of the FPL in the first year. Maintaining current Emergency Assistance funding is also crucial. Finally, additional funds can help to improve off-ramps, reduce work hour requirements to better meet families’ realities, eliminate barriers for immigrants, and ensure that children and parents are lifted out of deep poverty.
4. Defend, Shield, and Support New Jersey’s Immigrant Communities
Potential federal policy changes threaten the safety and security of New Jersey’s diverse immigrant communities. More urgently than ever, the state needs to step up to protect Garden State immigrant families, providing them the empathy and enthusiasm that all families who call the state home are afforded.
To adequately respond to and prepare for possible federal actions, the Department should ensure that funding is available to codify the Office of New Americans and to support and strengthen the continuation of services like the Deportation Detention Defense Initiative, legal services for unaccompanied minors, and fee waivers and assistance for refugees and asylum seekers. Additionally, any further funding needed to improve language access across all programs will be a vital commitment at a time when communication will become key to protection.
5. Support Quality Child Care Options in the Face of Increased Demand
As offices push for employees to return to commuting and in-person only setups, more and more families are having to make tough decisions about how to best care for their children during the work day. Having affordable, quality child care options that fit into a working family’s budget and meet the true cost of child care helps to build economic security and guarantee a more stable future for families and the state. At the same time, a quality child care system provides wages that fairly value the importance of child care providers’ work and ensures that they are able to cover their living expenses.
NJPP urges the Department to take action to make sure that child care wages keep up with demand. Additionally, DHS should adjust child care subsidy rates to meet the needs of workers and families.
In order to continue to fund all of these vital services, NJPP urges the administration to consider a range of revenue raisers that can be found in our latest report.[1]
Thank you so much for your time and consideration.
End Notes
[1] New Jersey Policy Perspective, Fair and Square: Changing New Jersey’s Tax Code to Promote Equity and Fiscal Responsibility, 2024. https://www.njpp.org/publications/report/fair-and-square-changing-new-jerseys-tax-code-to-promote-equity-and-fiscal-responsibility/
