As NJ Transit faces a fiscal shortfall of up to $1 billion for FY2026, the Fund NJ Transit Coalition extends our deepest gratitude to the state legislators who stood up for riders today and voted in favor of this critical funding, and to Governor Murphy for including the corporate fee in his initial budget.

Over recent years, NJ Transit has struggled with severe structural deficits after decades of disinvestment, and this landmark achievement signifies a long-sought victory for transit riders, workers, and advocates across New Jersey. The newly enacted corporate transit fee will provide a reliable stream of funding to support NJ Transit’s operations, which until now, had been left to the whims of the annual appropriation process. This new financial commitment will help stabilize NJ Transit’s funding, which protects riders from service cuts and ensures the long-term sustainability of New Jersey’s public transportation system.

The corporate transit fee establishes a 2.5% fee on businesses earning more than $10 million in annual net profit, reflecting a collective responsibility to support the public transit infrastructure that is vital to New Jersey’s economic health and quality of life. Unfortunately, the new fee will need to be reauthorized in five years and does not roll back the fare increases going into effect July 1, but it is still an incredibly big step in the right direction.

“The Venn Diagram of mobility and equity is a circle,” said Zoe Baldwin, VP of State Programs for Regional Plan Association. ​“In order to thrive, people need reliable and affordable access to school, work, family, and amenities and with this dedicated funding, we can finally start to envision that future.”

“We applaud the budget agreement between state lawmakers and Governor Murphy ensuring that the state’s most profitable corporations contribute their fair share to improving our transportation network. NJ Transit is in need of funding: this past week, five of the seven days, the agency announced significant delays or modified service. There’s a clear need to keep NJ Transit reliable—this is a historic win for riders,” said Renae Reynolds, Executive Director of Tri-State Transportation Campaign.

“We applaud Governor Murphy and the legislature for taking the first major step in providing reliable, affordable, and clean public transportation in New Jersey,” said Ed Potosnak, Executive Director, New Jersey LCV. ​“Dedicated funding will be transformational for NJ Transit, instead of relying on endless budget gimmicks that take place in Trenton each year. This stable funding source will help bring riders better access to clean public transportation, which will not only keep us running, but improve air quality and public health. We’re seeing good governance in action; the corporate transit fee will fill a gaping hole in NJ Transit’s budget as well as having the additional benefit of running through the corporate business tax mechanism, which will provide needed preservation dollars for open spaces and parks.”

“Development and redevelopment near our transit stations is imperative to create walkable communities with diverse residential and commercial opportunities,” said Chris Sturm, Land-Use Policy Director of New Jersey Future. ​“We need reliable and consistent public transportation to enable that type of development. This June alone, Northeast Corridor NJ Transit and Amtrak trains experienced delays on 1 out of 3 days, reflecting an unacceptable state of disrepair for our country’s most heavily trafficked rail corridor and for a transit agency that boasts over 200 million rides a year. NJ Transit requires dedicated, consistent funding for crucial maintenance and expanded service to assist New Jerseyans in getting across the state without relying on a private automobile. New Jersey is anteing up our commitment to our state public transit agency at the right time by establishing this momentous and encouraging dedicated funding stream to improve the essential service of NJ Transit. New Jersey Future is committed to working with partners to ensure fees raised in the Corporate Transit Fee will be unequivocally dedicated to NJ Transit’s needs.”

“NJ Transit has been hindered since its founding a generation ago with a lack of dedicated funding,” said Doug O’Malley, Director of Environment New Jersey. ​“Today’s historic vote will finally provide NJ Transit with the dedicated funding that every other major transit agency already depends on. June has been a dumpster fire of a month for transit riders, but a future without dedicated funding would mean unthinkable service cuts. The fiscal cliff is very real, and NJ Transit relies on the farebox more than any other major transit agency. Kudos to Gov. Murphy, Senate President Scutari and Speaker Coughlin for not waiting till next year to solve this pending crisis. The job is not done. This dedicated funding has a sunset and should be dedicated via the ballot to NJ Transit; fare hikes on Monday will mean turn away more riders and historic capital to operating budgets raids remain an albatross. Mass transit remains the greenest transportation option, but only if the trains and buses run - this vote for dedicated funding is a life-line for NJ Transit.”

“More than 90% of New Jersey commuters to New York rely on public transit,” said Emmanuelle Morgen, Director of Hudson County Complete Streets. ​“Following this year’s transit crises, it’s a relief that lawmakers finally created a transit funding stream. But the transit emergency is not over. Now we must make capital investments to expand our transit systems. A healthy public transportation system is the mark of a healthy society. Too many residents are left behind when we invest more in highway widenings than in public transit. We need our leaders and transportation agencies to adopt Transit First policies.”

“This is a historic moment for NJ Transit and the millions of riders who rely on its service,” said Alex Ambrose, policy analyst, New Jersey Policy Perspective (NJPP). ​“Creating a dedicated source of funding for NJ Transit is the first step in ending decades of disinvestment and protecting against service cuts for riders. It’s a textbook example of good public policy to have the most profitable corporations in the country pay for the transit infrastructure that they benefit from and that their workers rely on. Thanks to the efforts of advocates, local officials, Governor Murphy, and bill sponsors, we’re getting NJ Transit back on track and moving towards a more connected and sustainable future.”

For more information on the Fund NJ Transit Coalition, please visit RPA | Fund NJ Transit