NJ taps employers with workers on Medicaid to counter Trump cuts

By: John Reitmeyer, Budget/Finance Writer

Outlets: NJ Spotlight

Published: July 27, 2026

Words: 873

Last Updated: 4 days, 21 hours ago

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As New Jersey braces for the full impact of reduced federal funding for social services, the state is taxing private employers that have a large number of workers receiving Medicaid benefits.

The levy, for as much as $725 per employee, went into effect this month after winning approval from Gov. Mikie Sherrill and fellow Democrats who control the state Legislature.

The proposal for what’s officially labeled a “fee” in state tax law was one …

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