NJ | Gov. Murphy greenlights $56B state budget

New Jersey’s latest state budget has finally crossed the finish line after months of controversy, advocacy and deal-making.

Gov. Phil Murphy signed the fiscal year 2025 Appropriations Act into law on Friday. The $56.7 billion budget will have some big impacts on people and businesses across the Garden State, including taxes, education and transportation.

• Puts more than $27 billion into property tax relief (includes funds for three key programs: ANCHOR, Stay NJ and Senior Freeze);

• Has the “highest level of school funding” in state history (including aid for local state aid, free pre- K and community college);

• Creates a 2.5 percent additional tax on corporations that earn more than $10 million per year, which will fund NJ Transit (expires in fiscal year 2029);

• Makes a “record full pension payment” of $7.16 billion;

• Contains a $6.1 billion surplus (the state’s so-called “rainy day fund”).

“With this budget, we are going to make life more affordable for more families,” Murphy said. “We are going to create new economic opportunities for our workers and local businesses. And we are going to invest in the potential of every one of our neighbors — from our students to our senior citizens.”

“But above all, this is a budget that will put the needs of our families ahead of special interests, starting by providing yet another round of record-high tax relief to our state’s working- and middle-class families,” the governor added.

The budget got support from some key lawmakers as it crossed the finish line.

“This budget is not just about balancing books … it’s about balancing the scales of opportunity and equity for all New Jerseyans,” Assembly Budget Committee Chair Eliana Pintor Marin said.

Senate Budget Committee Chair Paul Sarlo said the spending plan “builds upon our record of fiscal responsibility,” adding that it will “serve the best interests” of New Jersey.