On April 3, 2025, New Jersey Department of Health (NJDOH) Commissioner Dr. Kaitlan Baston appeared before the Senate Budget and Appropriations Committee to present Governor Murphy’s proposed Fiscal Year 2026 State Budget for NJDOH, which totals $1.4 billion. The Commissioner was accompanied by members of the Department’s senior leadership team, including Deputy Commissioners Jeff Brown, Deborah Hartel, and Kelly Anderson-Thomas, as well as Chief Financial Officer Eric Anderson, and Acting Chief State Medical Examiner Dr. Alex Zhang.
NJDOH is responsible for protecting and improving the health and well-being of all New Jersey residents through a broad range of public health, clinical care, and regulatory functions. The Department oversees hospital and healthcare facility licensing, disease prevention and response, maternal and child health services, substance use and mental health initiatives, emergency medical services, and environmental health protections. NJDOH also manages statewide public health programs such as cancer screening, immunizations, harm reduction, and HIV treatment access while working to ensure health equity and improve health outcomes through data modernization, community outreach, and support for vulnerable populations.
Against constrained state resources and substantial federal funding cuts, the Commissioner emphasized the Department’s steadfast commitment to maintaining and strengthening New Jersey’s public health infrastructure. This includes addressing the immediate impact of the recent cut of nearly $300 million in federal support from the Centers for Disease Control and Prevention (CDC), which had previously helped fund direct care, community health services, and the state laboratory.
Hospital Subsidies
A key focus of this year’s proposal is maintaining support for the healthcare systems that serve New Jersey’s most vulnerable populations. The budget includes $3.6 billion in total hospital subsidies—an increase of more than $2.9 billion since Governor Murphy took office—across various programs, including $336.5 million for Graduate Medical Education and $210 million for the Quality Improvement Program. In conjunction with the Department of Human Services, over $600 million will be allocated for charity care-focused funding, which will continue New Jersey’s interdepartmental approach to this issue.
The Department continues to prioritize care for individuals with severe mental illness, with $405 million allocated to support operations and patient services across four state psychiatric hospitals. This includes a $1.5 million investment to strengthen centralized leadership and improve treatment outcomes. The FY 2026 proposal also maintains funding for the Office of Long-Term Care Resiliency and reserves $4 million to help prevent emergency closures at long-term care facilities.
Modernizing Public Health Infrastructure in the Face of Federal Cuts
The Commissioner raised the alarm over recent federal cuts that will immediately reduce CDC support to New Jersey by nearly $300 million—funding that previously enabled services such as community health work, disease prevention, and laboratory operations. In response, the FY 2026 budget prioritizes investments to sustain public health capabilities at the state level. Over $12 million is included to support the AIDS Drug Distribution Program. The Department is also allocating $3.8 million for the New Jersey Center of Excellence for Cancer Surveillance and $5 million for the NJ Cancer Education and Early Detection program. Uncompensated care at Federally Qualified Health Centers will continue to receive $32 million in support. In a joint effort with the Department of Environmental Protection, the budget includes $1.25 million to prevent Legionnaires’ Disease and an additional $1 million to expand vaccine access in response to waning federal resources.
Emergency medical services also remain a priority, with NJDOH certifying more than 21,000 EMTs and paramedics and maintaining licensure for thousands of emergency units. To support EMS operations, the Department will continue funding the state’s Electronic Patient Care Reporting system, used in over 1.5 million emergency responses annually.
Advancing Harm Reduction and Integrated Behavioral Health
Addressing substance use disorder remains one of the Department’s most pressing public health challenges. Commissioner Baston highlighted the expansion of Harm Reduction Centers from seven statewide in 2018 to one in every county today. Through new directives, paramedics are now authorized to administer buprenorphine, which is used to mitigate the symptoms of opioid withdrawal after a Naloxone reversal. In partnership with the Department of Human Services, NJDOH is advancing regulations to establish a new integrated license for outpatient primary care, behavioral health, and addiction services; the proposed rule on the license is expected to open for public comment later this month.
Centering Maternal, Infant, and Child Health
Maternal health continues to be a central focus of the Murphy Administration and the Department. The FY 2026 proposal includes ongoing support for the New Jersey Maternal Mortality Review Committee and the Maternal Data Center, along with over $1 million to grow the perinatal workforce—specifically with doulas and midwives. Programs like Connecting NJ and Early Childhood Intervention are also seeing increased demand, and the Department’s WIC program continues to provide nutritional and breastfeeding support to over 160,000 residents monthly.
While progress has been made, disparities persist. Black mothers in New Jersey still face disproportionately high mortality rates. Commissioner Baston reaffirmed the Department’s commitment to improving outcomes and eliminating these disparities entirely.
Safeguarding Reproductive Health and Healthcare Affordability
In response to growing national threats to reproductive freedom, New Jersey remains a stronghold for reproductive health access. The FY 2026 budget includes the largest investment in reproductive care in state history—over $50 million—bringing the total investment since 2018 to $268 million. This commitment ensures providers and patients remain free from political and legal intimidation.
The Department also continues to focus on accessibility and affordability. The Office of Health Care Affordability and Transparency has now moved to NJDOH, with a renewed emphasis on preventive and primary care strategies to reduce unnecessary hospitalizations and the burden of medical debt.
Preparing for Global Events and Protecting Public Health on a Global Stage
Commissioner Baston concluded her remarks by highlighting the public health implications of New Jersey’s hosting multiple FIFA World Cup matches in 2026, including the final. With more than one million international visitors expected, she stressed that the Department’s ability to monitor and respond to potential disease outbreaks will depend on the investments made now. She cited recent global threats, such as the measles outbreak in Texas and the Marburg virus in Tanzania, as reminders of how rapidly diseases can spread in large gatherings. Enhancing laboratory capacity, expanding multilingual messaging, and performing high-volume food safety inspections will be essential.
The Commissioner cautioned that further cuts to public health funding—combined with the loss of global partnerships such as the United States Agency for International Development and the World Health Organization—could undermine preparedness efforts. She urged lawmakers to resist the temptation to cut public health programs in times of fiscal constraint, warning that underinvestment will ultimately cost more—in both dollars and lives.
Please contact a member of the McCarter Government Affairs team with any questions or to learn more about the Department of Health’s FY 2026 budget proposal.