July 21, 2025

NJ Supreme Court Upholds Charity Care Requirement for Hospitals – NJ State Policy Updates

Transportation

New Law Requires Pedestrian and Cyclist Safety in Driver’s Education – On July 17th, Governor Phil Murphy signed Bill A4765 (P.L.2025, c.103.) into law, mandating that state driver’s education programs include instruction on safely sharing the road with pedestrians and cyclists. Supporters, including families affected by vehicle crashes, argued that the law raises awareness of pedestrian and driver safety. They also called for additional legislation to reduce car-related fatalities. This measure follows a 2024 law that established the Target Zero Commission, assigned to develop strategies to eliminate serious traffic fatalities in the state by 2040. There were approximately 200 pedestrian deaths and over 690 total traffic fatalities in 2024 in New Jersey, the highest in 30 years.

 

Health

New Jersey Joins Lawsuit Against Trump Administration Health Care Rule – On July 17th, New Jersey and 19 other states filed a lawsuit against the Trump administration, challenging a federal rule that could result in about 2 million Americans losing their health insurance coverage. The lawsuit argues that the rule, set to take effect on August 25, unlawfully restricts access to Affordable Care Act plans by shortening enrollment windows, adding verification requirements, and removing coverage for certain gender-affirming treatments. New Jersey Attorney General Matt Platkin warned the change could raise costs and reduce access to health care for residents. More than 500,000 New Jerseyans enrolled through the state’s health care marketplace this year.

NJ Supreme Court Upholds Charity Care Requirement – On July 16th, the New Jersey Supreme Court unanimously upheld the state’s charity care law, affirming that hospitals must treat patients regardless of their ability to pay. The court ruled that hospitals dissatisfied with reimbursement levels should direct their concerns to state lawmakers. Under the current law, the state reimburses hospitals for a portion of service costs through the charity care system. The ruling comes amid a decline in charity care funding, with just over $61 million allocated to the fund this year compared to $342 million in 2024. The reduction is driven partly by increased insurance coverage under the Affordable Care Act and a shift in hospital funding towards Medicaid.

 

Education

States Receive Portion of Withheld Federal Funds for Schools – On July 18th, the Trump administration agreed to release $1.3 billion in previously withheld K-12 education funds for before-and after-school and summer programs in states. This decision came after bipartisan backlash and concerns from Republican senators. The released funds will support the 21st Century Community Learning Centers initiative, which helps create community centers providing academic services outside regular school hours, especially for students in high-poverty and underperforming schools. However, another portion of the $6.8 billion supposed to be distributed two weeks earlier remains frozen, including funding for migrant education and English-language learning. Democratic lawmakers and education groups, such as the School Superintendents Association, continued to call for the release of the remaining funds. New Jersey lawmakers and advocacy groups previously argued that the funding freeze would damage educational outcomes and severely harm both students and the state’s economy. Initial estimates suggested the Trump administration might freeze about $143 million in education funding specifically to New Jersey, with $32 million allocated to 21st Century Community Learning Centers in the state.