Bill Text: NJ A5440 | 2026-2027 | Regular Session | Introduced
Bill Title: Increases personal needs allowance for certain individuals by annual rate of inflation.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Introduced) 2026-09-14 - Reported and Referred to Assembly Aging and Human Services Committee [A5440 Detail]
Download: New_Jersey-2026-A5440-Introduced.html
Sponsored by:
Assemblyman STERLEY S. STANLEY
District 18 (Middlesex)
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
SYNOPSIS
Increases personal needs allowance for certain individuals by annual rate of inflation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the personal needs allowance and amending P.L.1985, c.286.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1985, c.286 (C.30:4D-6a) is amended to read as follows:
1. a. Any person who is eligible for medical assistance and health services under P.L. 1968, c. 413 (C. 30:4D-1 et seq.) and who receives medical assistance under subparagraph (4)(a) of subsection a. or under paragraph (11), (13) or (14) of subsection b. of section 6 of P.L. 1968, c. 413 (C. 30:4D-6), who is not eligible for Supplemental Security Income benefits pursuant to 42 U.S.C. s. 1382(e)(1)(B), is entitled to a [$35.00] $50.00 monthly personal needs allowance. Beginning January 1 of the next year following enactment of P.L. , c. (pending before the Legislature as this bill), and annually thereafter, the personal needs allowance shall be increased by the annual percentage change in the Consumer Price Index.
b. "Consumer Price Index" means the Consumer Price Index for All Urban Consumers, as published by the Bureau of Labor Statistics in the United States Department of Labor, shown as an average index for the New York-Northern New Jersey-Long Island region and the Philadelphia-Wilmington-Trenton region combined.
(cf: P.L.1985, c.286, s.1)
2. Section 3 of P.L.1973, c.256 (C.44:7-87) is amended to read as follows:
3. The commissioner shall:
a. Enter into agreements with the government to secure the administration of supplementary payments by the government for such time and upon such conditions as the commissioner may in his discretion deem appropriate.
b. Promulgate, alter and amend such rules, regulations and directory orders as are necessary and proper:
(1) To implement the terms of the agreement with the government for the administration by the government of supplementary payments; and
(2) To secure social services for eligible persons, and for such other aged, blind or disabled persons as the commissioner may designate.
c. Transfer State or welfare board funds, or both, currently appropriated for this State's participation in the federal categorical assistance programs of "Old Age Assistance," R.S.44:7-3 to R.S.44:7-37; "Assistance for the Blind," P.L.1962, c.197 (C.44:7-43 to 44:7-49) and "Permanent and Total Disability Assistance," P.L.1951, c.139 (C.44:7-38 to 44:7-42) and any funds which may in the future be appropriated for the payment of supplementary payments, to the government in such amounts and at such times as the commissioner shall deem appropriate in order to provide for supplementary payments to eligible persons in this State.
d. Pay to the government such funds as are necessary to reimburse the government's expenses in collecting additional information needed for the State to make eligibility determinations for medical assistance under the "New Jersey Medical Assistance and Health Services Act," P.L.1968, c.413 (C.30:4D-1 to 30:4D-19).
e. Require welfare boards to perform such eligibility determinations as the commissioner may deem necessary for the continuation of the New Jersey Medical Assistance Program under the "New Jersey Medical Assistance and Health Services Act," P.L.1968, c.413. The commissioner shall pay to the counties a reasonable amount to reimburse the welfare boards for their expenses in making such eligibility determinations.
f. (Deleted by amendment, P.L.1990, c.66.)
g. Take appropriate steps to secure maximum federal financial participation in providing assistance to eligible persons residing in residential health care facilities.
h. Ensure that any eligible person residing in a rooming or boarding house or residential health care facility has reserved to him a monthly amount, from payments received under the provisions of the act to which this act is a supplement or from any other income, as a personal needs allowance. The personal needs allowance may vary according to the type of facility in which an eligible person resides, but in no case shall be less than [$25.00] $50.00 per month, provided that beginning January 1 of the next year following enactment of P.L. , c. (pending before the Legislature as this bill) and annually thereafter, the minimum personal needs allowance shall be increased by the annual percentage change in the Consumer Price Index.
i. Ensure that any eligible person who receives medical assistance under subparagraph (4)(a) of subsection a. or under paragraph (11), (13) or (14) of subsection b. of section 6 of P.L.1968, c.413 (C.30:4D-6) receives [$10.00] such an amount per month that, in addition to benefits received pursuant to 42 U.S.C. s. 1382(e)(1)(B), the total monthly benefit is equal to $50. If the federal government cannot administer this [$10.00] monthly increase, the commissioner shall administer this increase and shall ensure that this increase is not considered income for Supplemental Security Income program purposes. However, if the government increases the benefit level under 42 U.S.C. s. 1382(e)(1)(B), the commissioner shall allow the government to administer this increase and shall reduce its payment to an eligible recipient by an equal amount. Beginning January 1 of the next year following enactment of P.L. , c. (pending before the Legislature as this bill) and annually thereafter, and following the same breakdown of benefits outlined in this subsection regarding the benefits received pursuant to 42 U.S.C. s.1382(e)(1)(B) and those additional benefits administered by the commissioner or federal government, the total monthly benefit amount shall be increased by the annual percentage change in the Consumer Price Index.
j. Assess welfare boards at the beginning of each fiscal year in the same proportion that the counties currently participate in the federal categorical assistance programs, in order to obtain the amount of each county's share of supplementary payments for eligible persons in this State, based upon the number of eligible persons in the county.
k. As used in this section:
"Consumer Price Index" means the Consumer Price Index for All Urban Consumers, as published by the Bureau of Labor Statistics in the United States Department of Labor, shown as an average index for the New York-Northern New Jersey-Long Island region and the Philadelphia-Wilmington-Trenton region combined.
(cf: P.L.1991, c.466, s.1)
3. The Commissioner of Human Services shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.
4. This act shall take effect immediately.
STATEMENT
This bill would update the monthly personal needs allowance (PNA) rate provided in statute to reflect the current $50 PNA rate established in the FY2026 Appropriations Act. The $50 rate applies to Medicaid enrollees who reside in nursing homes, State and county psychiatric hospitals, and State developmental centers, and is intended for residents to spend at their discretion on personal items, such as haircuts, clothing, telephone expenses, and cards to send to family members.
The bill also specifies that, beginning on January 1 of the year following the bill's enactment, the PNA would be increased by the annual percentage change in the Consumer Price Index. The bill defines the Consumer Price Index as the Consumer Price Index for All Urban Consumers, as published by the Bureau of Labor Statistics in the United States Department of Labor, shown as an average index for the New York-Northern New Jersey-Long Island region and the Philadelphia-Wilmington-Trenton region combined.
In the case of residents eligible to receive SSI public assistance, a federal income supplement program designed to help aged, blind, and disabled individuals with little or no income, the federal government provides up to $30 each month for comfort items not provided by the facility. The State supplements the federal amount by $20 so that the monthly PNA received by SSI recipients living in nursing homes, State and county psychiatric hospitals, and State developmental centers is equal to that of Medicaid enrollees, or $50. The bill establishes the existing $50 personal needs allowance for SSI recipients living in these institutional settings in statute.
Under Medicaid, an individual's PNA is income that is disregarded when determining the amount that an individual residing in an institution must contribute to the cost or care. The State and federal government under the Medicaid program pay the remainder of the cost of care.
