25K Could Lose Healthcare In NJ Under 'Big Beautiful Bill', Advocates Say

Tens of thousands of people in New Jersey are set to lose their federal health benefits thanks to the provisions set forth by President Donald Trump's One Big Beautiful Bill signed last month.

Immigrants in the United States legally, such as refugees and victims of human trafficking, are eligible to receive Medicaid coverage under the current policies. While some migrant populations will be unaffected, an estimated 15,000 to 25,000 people are at risk of losing healthcare in October 2026, according to Advocates for Children of New Jersey.

New Jersey is one of several states that use state-only funds right now to provide health coverage to children, regardless of their immigration status, if their household income meets certain eligibility requirements. Current federal law requires immigrants to have a "qualified" status to be eligible for Medicaid or the Children's Health Insurance Program (CHIP). These groups include lawful permanent residents, refugees; individuals granted parole for at least one year; individuals granted asylum or related relief; certain abused spouses and children; certain victims of trafficking; Cuban and Haitian entrants; and citizens of the Freely Associated States (COFA migrants) residing in states and territories.

Many of these immigrants, with the exception of children and pregnant women where states can waive the period, must also wait five years to enroll in Medicaid. An Emergency Medicaid program currently pays hospitals for the costs of care provided to immigrants who would qualify for coverage if they were not held back by their immigration status. Hospitals are required under federal law to provide this care.

Under a provision in the One Big Beautiful Act, the definition of qualified immigrants for purposes of Medicaid or CHIP eligibility is being further restricted to lawful permanent residents, Cuban and Haitian entrants, citizens of the Freely Associated States (COFA migrants) lawfully residing in the US, and lawfully residing children and pregnant adults in states that cover them.

According to health policy research organization KFF, New Jersey is currently receiving a 50 percent match on Medicaid funding from the federal government. The One Big Beautiful Bill Act, also known as the "Big Beautiful Bill," was passed by the U.S. House of Representatives by a vote of 218-214 on July 3 with two Republican dissenters. The president then signed it into law on July 4.

According to the White House, with the addition of certain tax reductions, the bill is set to save New Jersey families in a median-income home with two kids an average of between $9,400 and $16,400 in take-home pay. It does, however, come with these significant cuts to programs like Medicaid and other healthcare services.

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