17 NJ Organizations Urge Governor Murphy to Invest in Family Caregivers and Provide Financial Relief

TRENTON, NJ (February 9, 2023) – Seventeen organizations from across the state representing over 2 million New Jerseyans, including consumer advocates, health care providers, faith-based, social justice and age-friendly communities, joined together today to urge Governor Phil Murphy to recognize and prioritize family caregivers in his upcoming FY’24 state budget proposal by including a modest, fully refundable, income tax credit of up to $675. The Caregiver’s Assistance Act (A1802/S2021) makes a necessary investment in family caregivers, who are the lynchpin to ensuring older adults can age at home and avoid costly, state-funded care, like nursing homes.

A letter sent by 17 organizations to the Governor said, “Family caregivers are the bedrock of our system of long-term care. Family caregivers who assume these personal financial burdens, save our state – and all taxpayers – money by keeping their loved ones out of taxpayer-funded nursing homes. The annual economic value of unpaid care provided by family caregivers in New Jersey is approximately $13 billion. To put this in perspective, the state’s entire Medicaid budget is $16 billion.”

“Family caregivers spend 26% of their income, on average, on caregiving activities,” said Crystal McDonald, Associate State Director of Advocacy, AARP New Jersey. “While caregivers take on this role lovingly, it is vital that the state recognize the growing financial burden that caregivers face – and the critical role they play in a person’s care team. The fact is unpaid caregivers save the state money by helping older loved ones live at home – where they want to be – even as they risk their own financial security, career advancement, and savings. Now increasing costs in gas, housing and groceries are making it even more difficult. This modest tax credit is a critical step forward to help make the essential role of family caregiving more affordable.”

“Nearly everyone will need to care for an aging loved one or receive care at some point in their lives,” said Yarrow Willman-Cole, Workplace Justice Program Director, New Jersey Citizen Action. “Governor Murphy has an opportunity to take action to support caregivers and invest in New Jersey families. Caregivers are the backbone of our economy and a caregiver tax credit recognizes the importance of this very real ‘Care Economy.’"

Among New Jersey voters 50 and older, there is overwhelming support (84%) for the state to expand the tax credit for Wounded Warrior caregivers to all family caregivers who provide care for older loved ones, according to a report from AARP. The Caregiver’s Assistance Act (A1802/S2021) would provide a fully refundable gross income tax credit of up to $675 per year for certain expenses paid or incurred for care and support of a qualifying senior family member.

“Family caregivers play a most critical role in ensuring that older adults receive attentive and necessary care,” said Marian Garber Marlowe, Planning and Allocations Manager/CARES Coordinator, Jewish Federation of Greater MetroWest NJ. “At the same time, the toll – both the mental toll and the financial toll – of caregiving can be significant and challenging and must be addressed. For this reason, we urge support for the Caregiver Tax Credit.”

“Most New Jerseyans simply cannot afford to pay out of pocket for the care and assistance needed to age in place,” said Cathy Rowe, DrPH, Executive Director, New Jersey Advocates for Aging Well. “Because of this, many family members leave the workforce to provide this care. While this is admirable, it also creates a cycle where caregivers – mostly women – lose income, future pension and Social Security benefits that will help them age well. We need to thoughtfully consider the economic impact of caregiving in New Jersey. We fully support the Caregiver’s Assistance Act A1802/S2021 to provide some financial relief and shine a light on how many people act as caregivers and how important their role is.”

“We can never repay our family caregivers for all they do, but we can at least start by giving them this modest tax credit,” said Reva Foster, New Jersey Black Issues Convention Chair.

This diverse group of organizations will continue to urge Governor Murphy to include the family caregiver tax credit in his upcoming FY ’24 budget proposal to the Legislature. It’s time to make family caregiving more affordable in New Jersey.

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About AARP New Jersey 
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. AARP New Jersey educates and advocates on behalf of those 50 and older on issues that are important to them, their families and to all Garden State residents. The organization works to strengthen New Jersey communities with a focus on health security, financial stability and personal fulfillment. To learn more, visit www.aarp.org/nj or follow @AARPNJ on social media.