TRENTON – In today’s budget address, Governor Murphy announced that the FY25 budget proposal for NJ Transit includes a pathway to establish dedicated funding for NJ Transit through a modified corporate transit fee. Transit advocates have been calling for dedicated funding for years and applaud the Governor’s action. Unfortunately, this alone will not solve the funding crisis for NJ Transit.
In January, NJ Transit announced a projected $119 million budget gap this fiscal year and increasing to a staggering $1 billion by 2026 and proposed a rider fare increase of 15% effective July 1 to help close the gap.

Earlier this month, transit advocates celebrated Transit Equity Day (February 4) with a powerful call to action for sustainable funding to support public transit across New Jersey. The event underscored the urgent need for nearly one billion dollars in operational funds required by the NJ FY26 budget to avert service cuts, fare increases, and project delays.

As NJ Transit fiscal health is in peril, the agency also needs to move to electrify its bus fleet. The Electric Vehicle Omnibus bill passed in 2020, set a goal for NJT to electrify its fleet by 2040 with 100% of new bus purchases to be 100% fully electric by 2032. To date, a pilot program has been launched in Camden with eight electric buses.

“We shouldn’t wait for NJ Transit to barrel over the fiscal cliff to provide the dedicated funding the agency – and riders – so desperately need. Governor Murphy has stepped up with his FY25 budget proposal to take the first step to provide dedicated funding through a modified corporate transit fee. We thank Gov. Murphy for this action, and Senate President Scutari for championing dedicated funding. NJ Transit’s fiscal state is dire enough that we need to maintain FY24 state funding and increased funding from the NJ Turnpike Authority to provide equitable funding for NJ Transit to stop this year’s fare hikes, future stealth annual fare hikes and FlexPass abolishment and end a legacy of budget raids,” said Doug O’Malley, Director of Environment New Jersey. “There have been two successive years of raids of the Clean Energy Fund to pay for NJ Transit bus electrification that have not funded the electric bus transition for NJ Transit. And this year’s budget continues a legacy of raiding NJ Transit’s capital budget of more than $330 million – dollars which could go to renovating NJ Transit bus garages that are more than 100 years old. NJ Transit’s first benchmark for electric buses is at the end of the year, but there’s no way to hit that benchmark without providing capital funding for electric buses. We need to provide dedicated funding for NJ Transit and end the raids on its capital funding.”

“Public transportation, especially when it is powered by clean energy and reliable, can lower emissions and power our state’s economy by allowing thousands of New Jerseyans to get to work and complete daily tasks,” said Debra Coyle, Executive Director of NJ Work Environment Council. “We applaud the Governor for proposing to establish a dedicated funding source and urge there be no fare increases.”

“Creating a growing and a thriving economy in New Jersey starts with our public infrastructure including our transit system,” said Drew Tompkins, Director of Jersey Renews. “Individuals throughout our state rely on public transportation every day and we need our state to invest in the public transit system, including building infrastructure and working to electrify our bus fleets, to ensure a world class, safe, reliable, and equitable way to travel.”

“Keeping transit buses and trains reliable, affordable and rolling are critical for the riders that depend on it everyday. Electrification of NJ Transit buses is essential to ensuring cleaner air and healthier riders and drivers in communities already overburdened by transportation pollution,” stated Amy Goldsmith, NJ State Director, Clean Water Action. “We thank Senator Scutari and others for their actions this budget season. But we all know that another Clean Energy Fund raid and partial remedies will not make NJ Transit. We need to work together to redirect $10+ billion for the NJ Turnpike expansion dollars to NJTransit. That’s the ticket to successful mass transit funding and electrification of the system.”

“NJ Transit’s long-term sustainability demands a parallel commitment to long-term financial investment,” said Jaqi Cohen, Director of Climate and Equity Policy for Tri-State Transportation Campaign. “Ensuring reliable service and clean infrastructure requires consistent dedicated funding, with affordable and equitable fares that don’t overburden riders. It’s time for New Jersey to prioritize the future of its public transportation by securing the resources needed to sustain NJ Transit for generations to come.”