700,000 New Jersey Residents at Risk of Losing Health Benefits after Murphy Raided $10 Billion Safety Net

A historic surplus vanishes as federal Medicaid cuts loom over 700,000 New Jerseyans.
April 4, 2025
700,000 New Jersey Residents at Risk of Losing Health Benefits after Murphy Raided $10 Billion Safety Net

TRENTON, N.J. — New Jersey Assemblyman Al Barlas slammed the Murphy administration on Wednesday for draining the state’s historic $10 billion surplus, warning that reckless spending has left Medicaid recipients vulnerable amid looming federal cuts.

Key Points

  • Assemblyman Al Barlas criticized Gov. Phil Murphy’s budget decisions, blaming Democratic spending for exhausting a $10 billion surplus.
  • State Treasurer Elizabeth Muoio warned of a possible $10 billion federal Medicaid cut threatening health care for 700,000 residents.
  • More than $3.6 billion in pork spending has been funneled to Democrat-led districts during the Murphy administration.

Barlas, a member of the Assembly Budget Committee, accused the administration of prioritizing political agendas over fiscal responsibility following testimony from State Treasurer Elizabeth Muoio regarding the proposed fiscal year 2026 budget.

“Now, their poor planning and insatiable appetite for spending have left our Medicaid recipients without a safety net,” said Barlas (R-Essex).

Muoio told lawmakers that New Jersey could lose up to $10 billion in federal Medicaid funds, which would directly affect coverage for hundreds of thousands of residents.

“Now more than ever, every dollar in our state budget must be spent wisely and efficiently,” Muoio said.

In June 2023, New Jersey entered the fiscal year with an unprecedented $10 billion budget surplus.

Since then, state spending has outpaced revenue, leading to a projected drain on the surplus.

The Murphy administration now proposes tapping into the remaining $6.3 billion to balance the next budget, risking complete depletion of reserves by 2029.

Barlas warned that the financial cushion once viewed as the state’s “insurance plan” is being misused. “The administration’s out-of-control spending has put us all at risk,” he said.

Much of the spending scrutiny stems from what Barlas called “pet projects,” which he said have funneled over $3.6 billion in pork to primarily Democrat-led districts. Of that, more than $2 billion was approved over the last two years alone.

Gov. Murphy’s office has not responded to Barlas’ criticism.