But a six-year extension of CHIP is now included in the short-term GOP bill to fund the government that is coming up for a potentially close vote in the House on Thursday.
And thousands of federal employees will be placed on furlough - meaning they won't report to work Monday.
Senator Steve Daines announced the need to reauthorize the Children's Health Insurance Program (CHIP) for six years and keep the government open.
Eligible children in New Jersey get coverage through NJ FamilyCare, which also covers Medicaid enrollees and residents who qualify through the state's Medicaid expansion.
Crafted by Sens. Orrin G. Hatch (R-Utah) and Edward Kennedy (D-Mass.), CHIP has been renewed several times since its creation with broad support from both parties.
"Congress needs to do its job and provide full funding of our troops and military with a two-year budget caps deal. These families can not wait and I urge the Senate to pass the measure in front of them today (Friday) to provide certainty for our children's healthcare", said Governor Sandoval.
Some states, like Connecticut, Colorado and Virginia, have already sent parents letters about how their children may lose health insurance next month as funding runs out.
Health experts and providers said CHIP has historically had bipartisan support among state leaders and representatives.
As of October 2017, Florida has enrolled 4,318,018 individuals in Medicaid and CHIP, according to Medicaid.gov.
After the president's seemingly contradictory tweet, GOP leaders scrambled to clarify the vehicle by which CHIP is being funded. Matthews says more than 23,000 Montana children would be at risk of losing coverage if CHIP isn't re-authorized.
"CBO updated their score and gave us the momentum to push a long-term CHIP extension across the finish line", Hatch says, although as recently as December Hatch himself was on the Senate floor saying, "The reason CHIP's having trouble is because we don't have money anymore". Republicans repealed the individual mandate as part of the tax plan, a move that CBO says will cause most health insurance premiums.