An SHBP show

Politico

22-07-2025

Good Tuesday morning!
Still no update on who our U.S. attorney will be come Wednesday as of the time this newsletter was filed last night. More on that from POLITICO's Ry Rivard below.
But since I am the interim Playbooker this morning, let me take a minute to talk about an issue that will take up a lot of Gov. Phil Murphy's time during his final days in Trenton: fixing the state's beleaguered health insurance program for government workers.
The State Health Benefits Program is facing massive proposed rate hikes for the upcoming plan year. Its coverage for local governments is in a 'death spiral.' And the current state budget requires state workers to find $100 million in recurring savings in a six-month period.
Amid this backdrop, Assembly Speaker Craig Coughlin is supporting a labor-backed bill that revamps the SHBP and is set for a rare summer committee hearing. That bill overhauls the governance and makeup of the board that oversees the SHBP — giving unions more leverage than they currently have — and changes how local government employees pay for their health care contributions that could insulate them from future rate hikes.
But that effort may be dead right out of the gate: One executive branch official told Playbook that the bill is an 'unserious proposal' and a 'complete non-starter.' A key concern from other administration officials is that they are skeptical the proposal would achieve meaningful savings to make the SHBP solvent in the long run. They also said that the governance structure would prevent the commission from being nimble. (The bill does allow for an independent arbitrator to make decisions in the event of a prolonged stalemate, although it could take weeks, if not months, to get to that point.)
Amid all this, Senate President Nick Scutari has proposed a time-honored Trenton tradition: create a task force for recommendations on SHBP fixes, as per an NJ.com op-ed. A spokesperson for Senate Democrats said that setting up the task force 'doesn't rule any idea in or out.'
Murphy declined to comment on the bill when asked about it in Trenton yesterday, but said the situation on the health benefits was 'complicated.'
'It's probably six or seven bank shots that would all have to come together,' he said of a potential long-term fix. 'Folks are gonna have to revisit what the state's putting in, on the other side what the workers are putting in. It depends on the plan, but the fact of the matter is the math is not working and we need to find ways to make the math work.'
More on this below.
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WHERE'S MURPHY — In Trenton with first lady Tammy Murphy for a groundbreaking ceremony for the Maternal and Infant Health Innovation Center
QUOTE OF THE DAY: 'Kim, it'll be nice to have you hanging here. Not literally.' — Gov. Phil Murphy, during the unveiling of former Lt. Gov. Kim Guadagno's portrait
HAPPY BIRTHDAY — Alexis Degan, Marelyn Rivera, former Rep. Mike Ferguson and former Hoboken Mayor Peter Cammarano
WHAT TRENTON MADE
Labor-backed public worker health insurance bill has rare summer hearing — and some pushback, by POLITICO's Daniel Han: Assembly Democrats are moving forward with a rare summer committee hearing on a labor-backed bill that overhauls the state's beleaguered health insurance program for state and local government employees. It's already facing hurdles. The legislation, NJ A5903 (24R), has the backing of Assembly Speaker Craig Coughlin. But one executive branch official, granted anonymity to speak candidly on the pending bill, described it as a 'complete non-starter' that would 'accelerate the death spiral and collapse of the [State Health Benefits Program].' Other administration officials have questioned whether the proposal would achieve meaningful savings.
THE NOT UNTOUCHABLES — Gov. Phil Murphy did not rule out the possibility of redrawing the state's congressional map as Texas Republicans are trying to overhaul their congressional map in a way that would benefit Republicans.
'No news to make, other than I will quote Sean Connery in 'The Untouchables': 'Never bring a knife to a gunfight,'' Murphy told reporters at an unrelated event. 'So if that's the way we're going, we're from Jersey, baby, and we won't be laying down.'
The comments come as House Minority Leader Hakeem Jeffries recently told CNN that national Democrats are considering several states — including New Jersey — to redraw their congressional maps if Texas moves forward with its proposal. But an attempt to overhaul the state's current congressional map mid-decade would almost certainly require a state constitutional amendment. For the uninitiated, that would require a resolution to pass the Legislature in two years with a simple majority or one year with a supermajority — and then it goes to the voters for approval. (The deadline is August to put a constitutional amendment on the ballot this fall.)
That's a lot of cooks in the kitchen. Also a relevant throwback: New Jersey lawmakers tried to amend the constitution in a way that would boost Democrats several years ago, but that effort ultimately failed.
It's worth noting that the governor has no official role in amending the constitution in New Jersey. Still, Murphy said the issue would likely be discussed among other Democratic governors during an upcoming National Governors Association meeting.
'I suspect as the Democratic governors get together for a drink or a coffee, this will be high on the agenda,' he said. — Daniel Han
— 'Assembly nominee accused of abuse faces criminal summons after sharing nude photos,' by New Jersey Globe's Zach Blackburn: 'A New Jersey physician filed a criminal complaint against Democratic Assembly nominee Ron Arnau on Monday, saying the candidate illegally shared nude photographs of him with the New Jersey Globe earlier this month. Physician Cristian Serna-Tamayo alleged Arnau, who is running for Assembly in the 40th legislative district, physically and emotionally abused him during a relationship from 2014 to 2016. Serna-Tamayo, in sworn statements from the time and in an interview with the New Jersey Globe, said Arnau held him at knifepoint for three hours in 2016, leading the pair to receive mutual temporary restraining orders; they later reached an agreement to drop the restraining orders. Arnau was never criminally charged in the matter and is now married to a different man. He has denied the allegations.'
BEACH BURN — 'Attorney general blasts 'outrageous' claims lobbed by state senator,' by New Jersey Monitor's Sophie Nieto-Munoz: 'A South Jersey state senator's accusations that Attorney General Matthew Platkin is using his office to pursue political vendettas are 'outrageous, totally ridiculous, and wrong,' Platkin said Monday. 'I think we know his politics and frankly, you know, I wish the folks in Trenton — Democrat and Republican — would spend more time focused on how they improve the lives of people's families and less time attacking people who are trying to help them,' Platkin told the New Jersey Monitor Monday after an unrelated event in Newark. Platkin and the state senator in question, James Beach, are both Democrats, but Beach is an ally of South Jersey Democratic power broker George Norcross, whom Platkin indicted on since-dismissed racketeering charges last year. Beach, who represents Camden County, last week sent a letter to Senate President Nick Scutari asking for legislative hearings in the fall on what Beach called Platkin's 'gross mismanagement and overtly political behavior.''
— New Jersey Monitor: New Statehouse portrait honors former lieutenant governor
TRUMP ERA
HABBA HUBBUB — Alina Habba, the interim U.S. attorney for New Jersey, is expected to learn today whether she can keep her job.
Habba, a former personal attorney to Donald Trump, has drawn scrutiny for prosecuting the mayor of the state's largest city and a member of Congress and investigating the governor. Her 120-day interim appointment expires today and the president has nominated her to a full term, but her fate remains unclear.
In an unusual process, district court judges were expected to have met Monday to decide whether she can stay on in the near-term — they could vote to keep her, not keep her or try to pick someone else for the role.
Chief Judge Renee Bumb's office said nothing about their work, which is now subject to intense outside scrutiny on social media.
In a social media post, House Minority Leader Hakeem Jeffries, a New York Democrat, called Habba the 'so-called U.S. Attorney' and accused her of 'maliciously' charging Rep. LaMonica McIver with felonies following a chaotic May incident outside an immigration detention facility in Newark. A trespassing charge filed that day against Newark Mayor Ras Baraka was dropped. Jeffries said Habba 'must be rejected by the Federal District Court judges who are considering whether to retain her.'
Conservative lawyer Mike Davis said he was filing a House ethics complaint against Jeffries for 'strong-arming' the 17 judges, 15 of whom were appointed by Democrats.
Davis' move drew praise from Trump allies. On his show, Steve Bannon criticized 'radical neo-Marxist federal judges in New Jersey working with Hakeem Jeffries' for trying to ditch Habba. Todd Blanche, who also represented Trump before joining his administration as a deputy attorney general, said on social media that Habba 'has the full confidence of DOJ leadership.'
If the judges do appoint a successor to Habba, it could set up a showdown with the executive branch if Trump moved to fire that person.
Trump has asked the Senate to confirm Habba to a full term, but it's clear New Jersey's two Democratic senators don't want the nomination to proceed. — Ry Rivard
CONGRESSIONAL GOP OPPOSE SANDY RELIEF AGAIN — 'Shore towns get no federal dollars for beach replenishments for the first time in almost 30 years,' by The Philadelphia Inquirer's Frank Kummer: 'Congress typically allocates between $100 million and $200 million each year for beach replenishment initiatives — projects that dredge sand from the ocean floor or other places and deposit it onto U.S. coastal beaches to combat erosion. This year, however, the federal budget earmarked zero dollars — marking the first complete funding halt for such projects since 1996. And it's possible that zero might carry over into next year as Congress debates spending priorities.'
CROSSING BRIDGES — Former Acting U.S. Attorney for the District of New Jersey Vikas Khanna is joining Sills Cummis & Gross P.C. as chair of its White Collar Practice Group. As a prosecutor, Khanna is perhaps best known for prosecuting the Bridgegate trial.
— POLITICO: Gottheimer's only challenger ends bid
— NJ Globe: 'Anna Lee Williams becomes first Democrat to enter race for NJ-11'
— NJ Monitor: 'NJ governor candidates split on housing immigrant detainees at Fort Dix'
— The Record: 'A third of new members on US DOT advisory committee have NJ ties"
— The Record: 'Medicaid work requirements cut coverage for thousands in other states. Can NJ do better?'
LOCAL
WHAT'S BLACK, WHITE AND RED BANK ALL OVER — 'A legal complaint to remove an arrest record raises free speech issue in Red Bank,' by the Asbury Park Press' Olivia Liu: 'In an attempt to keep his assault arrest from showing up in internet searches, a Red Bank resident filed a criminal complaint against a local news outlet to get it to remove the original news item. The complaint raises the issue of what the press can print and what restrictions the government may impose on it. Red Bank Green publisher Kenneth Katzgrau and reporter Brian Donohue were named in the complaint that was filed by Kyle Pietila, who had his arrest record expunged about six months after the arrest. The case is being heard in Red Bank Municipal Court.'
'N.J. school district blames state for 'unbearable' 25% tax hike on residents,' By NJ Advance Media's Nyah Marshall: 'A Monmouth County town is blasting New Jersey education officials over deep school aid cuts, saying it was forced to impose a 25% tax hike on its residents. Neptune Township has lost more than $20 million in state aid since New Jersey revised its school funding formula in 2018. For the 2025-26 school year alone, the district saw a $4 million drop in aid, officials said. Struggling to make up the multimillion-dollar budget gap, the district was forced to raise property taxes by $17 million — the largest increase in the township's history, according to Mayor Robert Lane.'
EVERYTHING ELSE
CHRISTIE SPEAKS — Chris Christie backs Seton Hall president amid clergy abuse investigation, by POLITICO's Dustin Racioppi: Former New Jersey Gov. Chris Christie said Monday he supports Seton Hall University's president amid an investigation into his past handling of clergy abuse allegations. Christie is one of the most prominent graduates of Seton Hall's law school and his wife, Mary Pat, recently left the school's Board of Regents without explanation.
BIG DAY FOR 'NY/NJ' — 'NJ and NYC Expect $3.3 Billion Boost From Hosting World Cup,' by Bloomberg's Sri Taylor: 'New York City and New Jersey officials are projecting a $3.3 billion economic boost to the region from hosting the FIFA World Cup in 2026. The region will host eight matches at Metlife Stadium in New Jersey, including the final on July 19, 2026, expecting to bring in over 1.2 million fans and tourists, according to an economic impact summary released Monday by the NYNJ Host Committee, the local body responsible for organizing the games. The tournament will generate $1.3 billion in projected total labor income for the regional economy, and $1.7 billion in projected spending within the regional economy by match and non-match attendees, according to the committee's estimates.'