TRENTON, New Jersey — Democratic Gov. Mikie Sherrill is proposing more than $1 billion in state support for NJ Transit in fiscal 2027, pitching the increase as a necessary backstop for an agency facing rising costs, flat fare revenue and the same old reality: New Jersey can’t function if the trains and buses don’t.
Sherrill’s $60.7 billion budget includes a $282.2 million General Fund subsidy for NJ Transit and $765.6 million in dedicated revenue from the Corporate Transit Fee, for total state support of slightly more than $1 billion. The proposal represents an increase of $215.3 million, or 26%, from fiscal 2026 support levels.
NJ Transit’s operating budget would also continue to draw on other sources, including the Clean Energy Fund, federal preventive maintenance funding and a contribution from the New Jersey Turnpike.
The administration says the additional state money is intended to cover an expected 11% increase in operating costs in fiscal 2027, driven by higher expenses for labor, materials and supplies, as well as Americans with Disabilities Act and Access Link contracts. Farebox revenue is projected to remain flat, reflecting what the budget describes as a post-pandemic ridership “new normal.”
Sherrill’s plan also ties NJ Transit’s finances to a broader agenda: continued support for the Gateway Tunnel Project, a push to fully modernize NJ Transit’s bus and rail fleet by 2031 to improve reliability and reduce maintenance costs, and backing for the agency’s LAND plan, which calls for transit-oriented development and other land-use reforms to generate non-fare revenue while expanding housing options.
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