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A 2326

Establishes Health Equity Access and Leadership Fund; appropriates $25 million from General Fund, and allocates portion of Health Care Subsidy Fund revenues, to fund.

2026-2027 Regular Session Introduced by Cody Miller

Establishes a non-lapsing HEAL Fund within the Health Care Subsidy Fund to provide competitive grants for health equity, targeting underserved populations and those losing funding.

Introduced, Referred to Assembly Health Infrastructure Committee
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Bill Summary · A 2326

Bill A 2326 (Session 222) — New Jersey

Title

Establishes Health Equity Access and Leadership Fund (HEAL Fund); appropriates $25 million from the General Fund to fund the HEAL Fund; creates a dedicated HEAL account within the Health Care Subsidy Fund (HCSF) and outlines governance, eligibility, and reporting requirements.

Purpose and Intent

  • Create a new, dedicated funding stream within New Jersey’s existing Health Care Subsidy Fund to support health equity, access, and leadership in community-based settings.
  • Provide competitive grants to health care community organizations and providers that serve underserved or underinsured populations and maintain access to care amid funding pressures.
  • Ensure ongoing, non-lapsing funding for health equity initiatives by embedding the HEAL Fund into the HCSF and complementing existing programs (e.g., NJ FamilyCare, charity care subsidies).

Key Provisions

1) Establishment and Funding

  • Establish a separate, non-lapsing, dedicated HEAL Fund within the Health Care Subsidy Fund.
  • Funding sources:
    • Annual allocation from the HCSF to the HEAL Fund equal to at least 0.1% of projected HCSF revenue for the applicable state fiscal year (minimum annual baseline; roughly $2 million in FY 2026).
    • A one-time General Fund appropriation of $25,000,000 to deposit into the HEAL Fund.
    • Additional funds the Commissioner of Health may approve (including gifts, grants, or donations).

2) Governance and Administration

  • The HEAL Fund will be administered by the Commissioner of Health.
  • An administrator of the HCSF (already established) will oversee the HEAL Fund within the broader fund structure and coordinate collection/disbursement.
  • The HEAL Fund will be governed by rules adopted under the Administrative Procedure Act.

3) Use of HEAL Fund

  • Moneys in the HEAL Fund (and earned interest) will be distributed via a competitive grant process to:
    • Health care community-based organizations and service providers.
    • Entities that provide essential health care services to:
    • Underserved or underinsured populations facing access reductions due to loss of state or federal funding.
    • All patients regardless of race, creed, color, national origin, immigration status, age, sexual orientation, disability, gender identity/expression, pregnancy, or other protected characteristics.
  • Grants are limited to entities that have not received any federal funding revenue in the 12 months prior to the grant submission date.

4) Eligibility and Grants

  • The Commissioner will establish eligibility criteria, at minimum covering the requirements in the bill (above) and the applicant’s need to maintain existing services.
  • Grants awarded based on an assessment of eligibility and fund availability.

5) Reporting

  • The Commissioner must submit an annual report to the Governor and the Legislature no later than March 1 each year after the first HEAL Fund allocation.
  • Report contents include:
    • Total receipts and sources of HEAL Fund deposits.
    • Total expenditures by grant amount, recipient, and purpose.
    • Geographic distribution of funded services and demographic characteristics of recipients.
    • Outcomes related to healthcare access, equity, and patient health.
    • Recommendations for continued or expanded HEAL Fund support.

6) Effective Date

  • Act takes effect immediately upon enactment.

Who Would Be Affected

  • Health care community-based organizations and service providers seeking competitive HEAL Fund grants.
  • Underserved and underinsured populations who would benefit from enhanced access to essential health services.
  • Health care facilities and programs that have faced recent or ongoing reductions in state or federal funding.

Timeline/Procedural Notes

  • Funding and governance align with the State fiscal year, with annual minimum HEAL allocations starting as determined by projected HCSF revenue.
  • The bill includes a mandatory annual reporting cycle beginning after the first HEAL Fund allocation.
  • Requires regulatory rules to implement the program (Administrative Procedure Act process).

Summary

Bill A 2326 creates the HEAL Fund as a dedicated, non-lapsing component of the Health Care Subsidy Fund, financed by a mandatory baseline of at least 0.1% of HCSF projected revenues plus a $25 million General Fund appropriation and other potential sources. The fund will support competitive grants to health care community-based organizations that serve underserved or underinsured populations and those lacking recent federal funding, with a strong emphasis on health equity and broad inclusivity. A rigorous eligibility framework and annual reporting are mandated to ensure accountability and measure impact on access and health outcomes. The act takes effect immediately.

Compiled from official sources — confirm details with the bill’s official record.

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