Governor Phil Murphy has signed the Fiscal Year 2026 Appropriations Act, setting funding levels for New Jersey for the next year. Despite modest revenue increases, a $1.5 billion gap remains, requiring the use of cash reserves that have decreased to $6.7 billion.
The state also faces potential financial challenges due to federal actions. New Jersey received nearly $30.8 billion in federal funds in fiscal year 2024, but Congress is expected to vote on significant cuts to Medicaid and food assistance programs. Such cuts could impact both state finances and residents reliant on these services.
Nicole Rodriguez, President of NJPP, commented on the situation: "Over the past seven years, Governor Murphy has taken great steps to put the state back on strong financial footing... But this legacy is now at risk."
She emphasized efforts by state leaders to ensure new revenue sources focus on wealthier individuals and large businesses through measures like a millionaire's tax and expanded realty transfer fees.
Rodriguez added that more needs to be done: "New Jersey can and should show the way forward for the country by ensuring that its residents are protected from these harmful federal actions."
She urged quick action from New Jersey's leaders: "This budget’s legacy depends on what happens in Washington... New Jersey’s leaders must act quickly to protect residents from the financial storm ahead."
