This bill establishes a three-year pilot program aimed at providing NJ FamilyCare benefits to children with special needs who live at home but would otherwise be ineligible due to their parents' income and assets. It defines a "child with special needs" as a child under 21 who meets the federal criteria for being blind or disabled under the Supplemental Security Income (SSI) program. The Department of Human Services (DHS) will conduct annual redeterminations to assess whether these children continue to meet the SSI definition. If a child is found no longer eligible, their NJ FamilyCare benefits will be terminated, but an appeals process will be established for families affected by such decisions.

At the conclusion of the pilot program, the DHS Commissioner is required to report to the Governor and the Legislature on the number of children who gained eligibility for NJ FamilyCare, the total costs incurred by the state for these benefits, and the administrative costs of the program. The report will also include recommendations on whether to make the benefits permanent. The bill aims to alleviate the financial burden on middle-income families with children who have special needs, particularly those who do not qualify for existing federal benefits due to income limitations.