Pallone helps secure over $32M in reimbursement to N.J. hospitals for COVID-19 fight

Federal relief funding backfills critical investments made by Barnabas Health, Saint Peter’s University Hospital to protect New Jerseyans during coronavirus pandemic

Congressman Frank Pallone, Jr. announced the Federal Emergency Management Agency (FEMA) is awarding over $32 million in federal funding to make New Jersey hospitals whole by reimbursing costs incurred during the COVID-19 pandemic.

Barnabas Health Inc. and Saint Peter’s University Hospital will receive reimbursement for emergency protective measures that safeguarded the public and treated thousands of patients at the height of the crisis.

“These funds are an important acknowledgment of the heroic work New Jersey’s hospitals undertook when it mattered most,” Pallone said. “From securing critical medications to rapidly expanding staff to meet unprecedented demand, these institutions didn’t just protect lives—they saved them. This investment will help ensure our medical institutions remain strong for the challenges ahead.”

Highlights of the funding include:

  • Barnabas Health Inc.:
    • $21.2 million for purchasing essential drugs, supplies, and testing kits (100% federal cost share).
    • $1.3 million to cover additional staffing and overtime costs during patient surges (100% federal cost share).
    • $4.3 million for COVID-19 testing supplies, including PCR and antigen tests, to combat virus spread (90% federal cost share).
  • Saint Peter’s University Hospital:
    • $5.1 million to fund contracted nurses, respiratory therapists, and other medical professionals who delivered emergency and in-patient care during a surge in cases (90% federal cost share).

The funding, authorized under the Robert T. Stafford Act, reimburses hospitals for costs related to their pandemic response, such as hiring additional staff, purchasing medical supplies, and conducting COVID-19 testing. The State of New Jersey will review the allocations and distribute the funds.

For more information on FEMA’s Public Assistance Program, visit FEMA’s website.