New Jersey Gov. Phil Murphy proposed $815 million in funding from the Corporate Transit Fee to support NJ Transit in his fiscal 2026 state budget address.
The proposed budget will allow the state to move forward in updating NJ Transit’s fleet “by providing funding to begin replacing every single outdated bus and rail car that remains in the agency’s fleet,” the governor promised in his eighth and final budget proposal.
“Last year, New Jersey emerged as the fastest-growing state in the Northeast and one of the top-10 fastest growing states in the entire country,” Murphy said, according to a transcript his office released. “And while that is fantastic news for our state’s economy, it also means that our public transit system is as busy as ever.”
“That is exactly why, over the past seven-plus years, our Administration has restored and dramatically increased funding for NJ Transit,” the governor added.
NJ Transit has benefited from an influx of money during the presidency of Joe Biden, spending that helped lead to lingering inflation. As a result, Murphy said the amount of funding provided to NJ Transit for new capital projects was nearly double what it was when he entered office.
“This funding supports everything from building new bridges — like the Portal North Bridge, which will be a game-changer for tens of thousands of commuters — to rebuilding train stations and modernizing our fleet of rail cars and buses,” Murphy said. “In fact, we have added more than 1,000 new buses to NJ Transit’s ranks in the past seven-plus years alone.
“Getting this done will make NJ Transit more reliable and more accessible for every New Jerseyan,” the governor added. “And this investment, into strengthening the foundation of our transportation system, is just one example of how we are making it easier for New Jerseyans to live and work in our state.”
However, not everyone met the move with excitement. The New Jersey Business & Industry Association has called on the $1 billion Corporate Transit Tax levied on New Jersey’s largest job creators to go to NJ Transit, its intended target.
“We see $815 million committed to NJ Transit in FY26 from the Corporate Transit Tax,” NJBIA President and CEO Michele Siekerka said in a statement. “That appears to be most of the projected amount to be collected in this coming fiscal year and we are glad to see it going to its intended purpose – to plug the NJ TRANSIT deficit.
“However, $1 billion collected from our largest job creators last year still remains in surplus and therefore open for purposes other than NJ Transit,” Siekerka added. “Our business community deserves clarity on the use of that money as it was intended for NJ Transit.”
EDITOR’s NOTE: Railfanning.org changed NJ TRANSIT to NJ Transit in statements for the sake of consistency and clarity.
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