Read the full stored bill text
A2249
ASSEMBLY, No. 2249
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
SYNOPSIS
���� Establishes NJ FamilyCare Stabilization Fund.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning NJ FamilyCare and supplementing Title 30 of
the Revised Statutes
.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in this act, �NJ
FamilyCare� means the Medicaid program established pursuant to P.L.1968, c.413
(C.30:4D-1 et seq.) and the program established pursuant to P.L.2005, c.156
(C.30:4J-8 et al.) which includes the Children�s Health Benefits Program.
���� 2.���
a.� There is established in the Department of the Treasury
a nonlapsing, revolving fund to be known as the NJ FamilyCare Stabilization
Fund.� This fund shall be the repository for monies appropriated pursuant to
section 3 of
P.L.��� , c.�� �(C.��� ����) (pending
before the Legislature as
this bill) and
any other
funds approved by the Department of Human Services.� Moneys deposited in the
fund, and any interest earned thereon, shall be used by the Division of Medical
Assistance and Health Services in the Department of Human Services to
maintain existing NJ FamilyCare services
and benefits in any given fiscal year in which
revenues from federal
reimbursements of NJ FamilyCare expenditures are anticipated to decrease by 15
percent or greater when compared to the previous fiscal year
.
��
����
b.��� The State Treasurer shall be the custodian of the
fund and all disbursements from the fund shall be made by the State Treasurer
upon requests made by the Commissioner
of Human Services, provided that 60 percent of the fund balance as of July 1 of
a fiscal year is the maximum amount that shall be disbursed in that fiscal year
.� The monies in the fund shall be
invested and reinvested by the Director of the Division of Investment in the
Department of the Treasury in the same manner as other trust funds in the
custody of the State Treasurer in the manner provided by law.� Interest
received on the monies in the fund shall be credited to the fund.
���� c.���� Commencing on January 1 following the first
appropriation into the fund pursuant to section 3 of
P.L.��� , c. ���(C.��� ����) (pending before the
Legislature as
this bill)
, and annually thereafter:
���� (1)�� the State Treasurer shall provide a report to
the Department of Human Services and the Legislature,
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1),
on the status of the fund; and
���� (2)�� the Department of Human Services shall provide a
report to the Legislature,
pursuant to section
2 of P.L.1991, c.164 (C.52:14-19.1),
documenting expenditures of monies from the fund in the previous calendar
year, identifying the reasons why these expenditures were necessary to maintain
existing NJ FamilyCare services and benefits, and providing projections for the
use of monies from the fund in the current calendar year.
���� 3.��� Commencing upon the
effective date of the next annual appropriations act for the State fiscal year
following the effective date of this act, and annually thereafter on each
subsequent effective date of an annual appropriations act for a State fiscal
year, there is appropriated five percent of State�s unreserved - undesignated
General Fund balance, as indicated in the applicable annual appropriations act
by subtracting the total appropriations for all State funds from the total
resources for all State funds, to the NJ FamilyCare Stabilization Fund,
established pursuant to section 2 of
P.L.��� , c.�� �(C.���
����) (pending before the Legislature as
this bill)
.
���� 4.��� This act shall take
effect immediately.
STATEMENT
����
This
bill establishes the NJ FamilyCare Stabilization Fund,
a nonlapsing, revolving fund in the
Department of the Treasury.� NJ FamilyCare is the State�s
publicly funded health insurance program for low-income
individuals, which includes Medicaid and the Children�s Health Insurance
Program.� The bill directs that five percent of the State�s
unreserved -
undesignated General Fund balance
, as determined upon
the enactment of the annual appropriations act at the start of each State
fiscal year, is to be annually
appropriated to the NJ FamilyCare
Stabilization Fund
.�
For
reference, the FY 2026 Annual Appropriations provides an unreserved -
undesignated fund balance $6.7 billion for the State.� Under this bill, $335
million of those funds would be transferred to the newly established NJ
FamilyCare Stabilization Fund in FY 2026.�
���� The resources in the fund are to be used by the
Division of Medical Assistance and Health Services in the Department of Human
Services
to
maintain existing NJ FamilyCare services
and benefits in any given fiscal year in which
revenues from federal
reimbursements of NJ FamilyCare expenditures are anticipated to decrease by 15
percent or greater when compared to the previous fiscal year
.
�In any given fiscal year, the
bill limits disbursement from the fund to
60 percent of the fund balance as of July 1 of the applicable
fiscal year.�
���� The bill requires that, commencing on January 1 next
following the first appropriation into the fund, and annually thereafter:� 1) the
State Treasurer is to provide a report to the Department of Human Services and
the Legislature on the status of the
NJ FamilyCare Stabilization Fund
; and 2) the Department of Human
Services is to provide a report to the Legislature documenting expenditures of
monies from the fund in the previous calendar year, identifying the reasons why
these expenditures were necessary to maintain existing NJ FamilyCare services
and benefits, and providing projections for the use of monies from the fund in
the current calendar year.
���� On July 4, 2025 the federal law known as �The One Big
Beautiful Bill Act� was adopted.� This law makes sweeping changes to the
Medicaid Program regarding eligibility and financing, which changes are
projected to significantly reduce the amount of federal funding supporting the
NJ FamilyCare Program in the coming years.� This bill aims to help the State
prepare for this and any future funding changes to the NJ FamilyCare Program as
a means to ensure that the State�s most vulnerable residents can continue to
have access to comprehensive health benefits.�