New Jersey's SCHIP program is facing an estimated $150 million shortfall in fiscal year 2007, which could result in some children losing benefits under the program, the Bergen Record reports. The program, called KidCare or Family Care in New Jersey, is a joint state-federal program for low-income children of families who do not qualify for Medicaid. According to Sen. Bob Menendez (D-N.J.), state leaders will have to adjust eligibility requirements, eliminate benefits, increase copayments or cut payments to doctors and hospitals to address the projected deficit. The program provides health care coverage for about 121,000 children in the state. The Center for Budget and Policy Priorities estimates that 17 states will face a total $890 million shortfall in federal funding next year, which could result in benefit cuts for about 610,000 children nationwide. Suzanne Esterman, spokesperson for the New Jersey Department of Human Services, said, "It's an issue everybody's watching. While we're concerned about it, we are hoping Congress finds a way to bridge the gap" (Jackson, Bergen Record, 9/28).

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