Donald Trump Makes Costly Decision For New Jersey

New Jersey officials condemned President Donald Trump's decision to cease payments the federal government makes to states to keep health care costs down for low-income residents — a move that could yank more than $144 million from New Jersey.

The White House announced the decision late Thursday night, blasting a "bailout of insurance companies through these unlawful payments."

The New Jersey Hospital Association told Patch that the decision jeopardizes insurance for as many as 126,000 people who depend on ACA federal subsidies for their insurance. The Center on Budget and Policy Priorities a nonpartisan research and policy institutes, said each person could lose, on average, $1,150 in federal subsidies - at least $144.9 million for the whole state.

Watch: Trump Administration To End Critical Obamacare Subsidies To Insurers

Others, such as the advocacy group New Jersey Citizens Action, said as many as 145,000 people could depend on the subsidies — at least $160 million for the whole state.

"These are totally irresponsible acts on the part of the Trump administration," U.S. Rep. Frank Pallone, D-Monmouth/Middlesex said in a conference call to reporters.

The loss of federal subsidies could also impact the insurance market across the board, and not just for poor people, U.S. Rep. Bonnie Watson Coleman said on the conference call. She estimated that costs could jump by 20 to 30 percent because Trump's decision will remove a major funding source for the insurance market.

The total New Jersey enrollment via the ACA marketplace is 244,000. 126,000 of those – 52 percent—are eligible for the "Cost Sharing Reduction" subsidies, otherwise known as CSRs, according to the New Jersey Hospital Association.

While not criticizing the decision, at least one Republican agreed said Congress must find a way to make the payments to help stabilize the market.

U.S. Rep. Leonard Lance, R-Union, said he has argued that funding for the cost-sharing reduction program is unconstitutional. "Under our Constitution, the power of the purse belongs to Congress and a federal court last year affirmed this view by deeming these health insurance subsidy payments illegal," he said.

"Now Congress must act and pass the Problem Solvers Caucus health care plan that I have endorsed," he said. "It funds the cost-sharing reduction program through the congressional appropriations process and implements free-market policies to improve our health care system and lower medical and insurance costs for all.”

President Donald Trump listens as he is introduced during an event to sign an executive order on health care in the Roosevelt Room of the White House, Thursday, Oct. 12, 2017, in Washington. (AP Photo/Evan Vucci)