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New Legislation Secures Billions for Infrastructure, NJ TRANSIT, and Local Projects.
3-26-2024 5:53pm
Murphy Reauthorizes New Jersey’s Transportation Trust Fund for Five More Years
NEW JERSEY – Today, Governor Phil Murphy signed into law a measure extending the Transportation Trust Fund (TTF) for an additional five years. This pivotal legislation, identified as A-4011/S-2931, earmarks billions in funding towards modernizing the state's transportation network, extending vital support to NJ TRANSIT, and aiding local and county projects to lessen the financial load on local taxpayers. Moreover, it promises the creation of thousands of high-quality union jobs across the state.
The TTF, initially established in 1984 and reauthorized seven times since, faced its last extension in 2016—a process delayed by expired authorizations that led to the temporary halting of projects. Under Governor Murphy's administration, the TTF has seen its largest capital program execution during the Fiscal Year 2021, marking a significant stride in New Jersey’s commitment to enhancing its transportation infrastructure.
The newly signed law guarantees a continuous flow of revenue for statewide transportation projects from July 1, 2024, to June 30, 2029. It sets forth an innovative mechanism for adjusting the Petroleum Products Gross Receipts Tax rate annually, based on a revenue target that reflects 2016 highway fuel tax collections. This adjustment aims to maintain a consistent funding level for the TTF, ensuring the state's ability to undertake critical transportation projects.
The legislation authorizes approximately $10.37 billion for the State’s Annual Transportation Capital Program over five years, with an estimated $2.3 billion allocated as State aid to counties and municipalities. This funding will support several transportation projects, from road and bridge repairs to public transit enhancements, significantly benefiting local communities.
Additionally, the law provides up to $8.84 billion in bonding authority to the Transportation Trust Fund Authority, including about $1.5 billion in pay-as-you-go funding for projects. The capital program cap will grow by 3% annually in the latter three years, coinciding with the culmination of federal Bipartisan Infrastructure Law funding, thus ensuring increased investment at both county and local levels.
NJ TRANSIT stands to gain substantially from this reauthorization, with an additional $91.75 million directed toward the agency over the last three years of the program. This boost will complement the $767 million NJ TRANSIT currently receives annually from the TTF, enabling the agency to embark on new capital projects and improve service for New Jersey residents.
The legislation also introduces an annual electric vehicle fee of $250, set to increase by $10 each year, to ensure equitable contribution towards road maintenance by all motorists. Furthermore, it aligns the annual tax rate adjustment for gasoline and diesel motor fuel sales with the calendar year, moving the adjustment date from October 1 to January 1.
Governor Murphy’s signing of this law represents a forward-thinking approach to transportation planning and investment, securing the infrastructure needs of New Jersey for the coming years and demonstrating a commitment to sustainable, efficient, and reliable transportation for all residents.
