New Jersey is one of a few states that already offers Medicaid to adults who earn up to a quarter of the federal poverty level - about $140 a month.
The federal grant "provides a significant amount of money at a time when the state faces serious budget problems," said U.S. Rep. Frank Pallone Jr. (D., N.J.), who was celebrating the news. "This is one more benefit related to the Affordable Care Act that helps people with medical care and helps states with financial resources to meet those needs."
About 57,000 adults are enrolled in the program in New Jersey.
An additional 10,000 are thought to be eligible.
"This demonstration is yet another example of the many flexibilities states have to adapt their Medicaid programs to better serve their residents," said Health Secretary Kathleen Sebelius. "I want to commend New Jersey for expanding coverage to people in need."
Gov. Christie's 2012 proposal relies on $88 million in savings from the matching grant this year.
Jennifer Velez, the state's Human Services Commissioner, said the grant marked the first of many steps in redesigning the Medicaid program.
The administration also anticipates $300 million in savings from a global Medicaid waiver it is seeking.