What changes in New Jersey on Oct. 1: Health coverage, utility bills and work rules
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NEW JERSEY - Oct. 1 brings several changes for New Jersey residents, businesses and state agencies, including new Medicaid eligibility restrictions for some immigrants, independent-contractor regulations and utility-assistance charges.
Not all of the changes are newly signed New Jersey laws. Some stem from federal legislation, while others are state regulations or agency decisions.
What changes for NJ FamilyCare
What we know:
Some noncitizens may no longer qualify for NJ FamilyCare, New Jersey’s Medicaid program, beginning Oct. 1.
The changes are tied to the federal One Big Beautiful Bill Act, according to the New Jersey Department of Human Services.
The state says some refugees, asylees, temporary humanitarian parolees and survivors of trafficking or domestic violence may lose eligibility if they have not adjusted to lawful permanent resident status.
Children, pregnant people, green-card holders who meet certain requirements and some other groups may still qualify. The department says people whose coverage could be affected should receive information from NJ FamilyCare.
Separate work and more frequent renewal requirements for certain adults are scheduled to begin Jan. 1, 2027.
What changes for SNAP
By the numbers:
New Jersey will take on a larger share of the administrative costs for the Supplemental Nutrition Assistance Program, or SNAP.
Beginning Oct. 1, the federal share of those administrative costs drops from 50% to 25%, while the state share rises to 75%, according to the New Jersey Department of Human Services.
The cost-sharing change does not mean SNAP recipients’ benefits change Oct. 1, but it could increase the amount New Jersey spends to run the program.
New independent-contractor rules
What they're saying:
New regulations from the New Jersey Department of Labor and Workforce Development become operative Oct. 1, spelling out how the state evaluates whether someone is an employee or an independent contractor.
Under New Jersey’s ABC test, a business has the burden of showing a worker is free from its control, performs work outside the company’s usual business or places of business, and operates an independently established business or trade.
The department says the regulations apply to worker classifications under New Jersey’s unemployment, wage-and-hour and wage-payment laws. Read the department’s announcement and the full adopted rules.
Utility-assistance charges shift
What we know:
The New Jersey Board of Public Utilities approved new interim Universal Service Fund and Lifeline rates for electric and gas service provided on or after Oct. 1.
The combined charge falls from $0.004508 to $0.003585 per kilowatt-hour for electric service and from $0.0262 to $0.0236 per therm for gas service.
For the average residential customer, the BPU estimates the change will lower the USF/Lifeline portion of annual charges by about $7.20 for electric customers using 7,800 kilowatt-hours a year and $2.60 for gas customers using 1,000 therms a year.
The change affects one charge within a customer’s bill, not the full cost of electricity or gas.
The money supports the Universal Service Fund, which helps low-income residents pay energy bills, and the Lifeline program. The approved 2026-27 USF budget is about $276.1 million, including roughly $44.8 million for Fresh Start benefits, while the Lifeline budget is about $74.6 million.
The BPU order also calls for more detailed reporting on enrollment targets, completed applications and pending cases as utilities take on greater responsibility for the USF application and approval process.
Read the full BPU order.
Tax-ruling requests paused
What's next:
The New Jersey Division of Taxation is also pausing acceptance of new letter-ruling requests for 60 days beginning Oct. 1 while it reviews that process.
Taxpayers and practitioners can still seek general written guidance about state tax laws and regulations, according to the Division of Taxation.
The Source: This article was written using information from the New Jersey Department of Human Services, New Jersey Department of Labor and Workforce Development, New Jersey Board of Public Utilities and New Jersey Division of Taxation.