Governor Phil Murphy has announced the establishment of the Office of Strategic Defense Investment, a new initiative aimed at strengthening New Jersey’s defense industry. The office will be housed within the New Jersey Economic Development Authority (NJEDA) and is intended to support the state’s defense sector by attracting new missions, protecting existing infrastructure, and promoting industry growth.
“New Jersey’s defense sector is a cornerstone of our state’s economy and our nation’s security. With world-class military installations and a vibrant network of defense contractors, the Garden State plays a critical role in advancing cutting-edge military technology,” said Governor Murphy. “The creation of the Office of Strategic Defense Investment demonstrates our commitment to ensuring New Jersey remains a leader in this vital industry. We will continue working closely with our partners in government, industry, and the military to strengthen New Jersey’s defense ecosystem, keeping our communities safe and our economy strong.”
The new office will act as a central hub for coordinating all defense-related priorities in New Jersey. It will work alongside the Governor’s Office, Department of Military and Veterans Affairs (DMAVA), and organizations such as the Defense Enhancement Coalition (DEC) and Picatinny Enhancement Coalition (PEC). These groups advocate for key installations like Joint Base McGuire-Dix-Lakehurst (JBMDL), Naval Weapons Station Earle (NWSE), and Picatinny Arsenal.
“Under Governor Murphy’s leadership, New Jersey has remained a leader in the defense industry, and the Office of Strategic Defense Investment will ensure the sector’s longevity and growth, which is essential for job creation and economic sustainability,” said NJEDA Chief Executive Officer Tim Sullivan. “By supporting the defense sector, we are driving economic growth and fueling innovation, while supporting our service members, their families, and our national security.”
According to NJEDA Chief of Staff Emma Corrado, who will oversee the new office: “New Jersey is home to one of the nation’s most significant defense ecosystems, from three major military installations to thousands of defense contractors, employing more than 70,000 New Jerseyans and contributing billions of dollars to our state’s economy. This isn’t just about national security — it’s about jobs, innovation, and long-term economic competitiveness for communities across the Garden State. Under Governor Murphy’s leadership, this new initiative is a critical step to ensuring our state remains coordinated, competitive, and strong in advancing our defense mission.”
The state's three main military bases employ over 54,000 personnel directly—more than 46,000 at JBMDL alone—while another 22,000 residents work as contractors or within supply chains linked to these facilities. In Fiscal Year 2023 alone, federal investment from the Department of Defense amounted to approximately $9.4 billion for New Jersey. This included $2 billion allocated for salaries for active duty and civilian personnel as well as over $7 billion awarded through contracts within the state.
Currently there are about 7,091 defense contractors operating in New Jersey who collectively receive around $7.3 billion annually in Department of Defense contracts; more than $1.4 billion supports manufacturing along with research and development activities at over 1,700 companies statewide.
Brigadier General Yvonne L. Mays highlighted New Jersey's strengths: “New Jersey’s citizenry and industry alike have always stood on the front line of national defense... We have it all: human talent, strategic location, and historic track record for excellence in critical requirements. New Jersey’s patriots set the conditions for success and victory.”
Congressman Donald Norcross emphasized workforce readiness: “New Jersey has always led the way in national defense and innovation... With the creation of the Office of Strategic Defense Investment we’ll harness our one-of-a-kind Jersey talent to keep our communities and servicemembers safe while staying at forefront of defense technology for generations to come.”
Congresswoman Mikie Sherrill noted ongoing challenges: “The manufacturing research & development conducted by New Jersey's defense industry is vital... As threats to national security continue growing around world American defense industry has never been more important.”
Senator Anthony M. Bucco described Picatinny Arsenal as an economic engine providing high-quality careers while Senator Raj Mukherji called federal investment through local installations "one most important pillars" supporting both jobs & national security.
Emil Kaunitz from DEC welcomed NJEDA's move saying it would help "aggressively compete" for federal jobs & infrastructure funds; Marty Kane from PEC underlined Picatinny Arsenal's global reputation especially its role developing artillery systems used internationally.
In July Governor Murphy wrote U.S Secretaries Pete Hegseth (Defense) & Daniel Driscoll (Army) expressing concern over proposed restructuring that could affect Picatinny Arsenal by consolidating acquisition offices.
