The New Jersey’s Transportation Trust Fund (TFF) has been renewed for five more years, with Governor Murphy signing the bill on Tuesday at the behest of both houses of the New Jersey State Legislature. The initiative will invest billions of dollars into the modernization and maintenance of New Jersey’s statewide transportation infrastructure, while providing additional capital funding for NJ TRANSIT, offsetting the costs shouldered by taxpayers, and creating thousands of high-paying union jobs.
READ MORE: Renewal of Transportation Trust Fund Awaits Murphy’s Decision
“New Jersey sits at the heart of one of the busiest stretches of commerce in the entire world,” said Gov. Phil Murphy. “Whether it’s trying to get home to their families after a long day or shipping critical goods to keep our economy humming, our residents and our businesses depend on the strength of our transportation system to get where they need to go. This legislation will ensure we deliver for them by enabling us to rebuild and maintain our entire transportation system, while creating thousands of good-paying jobs in the years to come and easing the burden of property taxes by offsetting these costs for local governments.”
The New Jersey Transportation Trust Fund was first established by the Legislature in 1984, and has since been renewed seven times, with the last renewal occurring in 2016. This newest renewal (A-4011/S-2931) will:
- Establish a five-year program, beginning July 1, 2024 and ending June 30, 2029, to ensure a steady stream of revenue to support statewide transportation projects.
- Annually adjust the Petroleum Products Gross Receipts Tax rate by updating the statutorily prescribed revenue target, colloquially known as the “highway fuel cap,” currently based on 2016 highway fuel tax collections.
- Authorize the appropriation of roughly $10.37 billion for the State’s Annual Transportation Capital Program from FY 2025 through FY 2029. Of that amount, an estimated $2.3 billion will be passed on as State aid to counties and municipalities for their own transportation projects.
- Provide up to $8.84 billion in bonding authority to the Transportation Trust Fund Authority over the five-year period, rounding out to about $1.76 billion per annum.
- Provide roughly $1.5 billion in pay-as-you-go funding for additional transportation projects.
- Expand the $2 billion maximum annual capital program amount by 3% per year in years three, four, and five of the reauthorization, coinciding with the end of federal Bipartisan Infrastructure Law funding. This revenue growth will be split evenly among NJDOT, NJ TRANSIT, county, and municipal governments, providing greater investment into infrastructure at a county and local level, and proactively preparing for the end of federal funding.
- Establish an annual electric vehicle fee of $250 (with increases of $10 per year in each of the remaining four years), which will ensure that all motorists, gas or electric, using the roads share in the responsibility of maintaining their conditions.
- Delay the annual tax rate adjustment for sales of gasoline and diesel motor fuel by three months, from October 1 to January 1, so that any rate changes coincide with the beginning of the new year.
“By extending the Transportation Trust Fund, we are ensuring that vital infrastructure projects that drive our economy and enhance the lives of our residents can move forward,” said Assemblyman Clinton Calabrese, prime Assembly sponsor of the legislation. “Investments made in our transportation sector have a significant economic impact, including the creation of more than 20,000 jobs annually. Capital projects demand long-term planning and funding certainty and the renewal of the TTF means these projects can move forward without delay.”
“The state’s infrastructure is the backbone of commerce and the economy in New Jersey. Our roads, bridges, tunnels, and railways need to be repaired, maintained, and improved,” said State Sen. Paul Sarlo (D-Wood-Ridge), chair of the Senate Budget Committee and prime Senate sponsor of the legislation. Renewing the Trust Fund will address the state’s infrastructure needs, create jobs, and fuel economic growth. The annual investments of $2 billion and more will create tens of thousands of jobs and generate billions of dollars in economic activity that will literally help build New Jersey’s future.”