Corporate Transit Fee Will Help Get NJ Transit Back on Track

Dedicated funding is a historic first that will go a long way toward filling NJ Transit's looming budget deficit.

Published on Jun 21, 2024 in Tax and Budget, Transportation

Today, Politico New Jersey reported that Governor Murphy and legislative leaders have reached a budget deal that includes the proposed Corporate Transit Fee to fund NJ Transit. This would represent the first-ever source of dedicated state funding for the agency, which faces a looming shortfall of nearly $1 billion once federal pandemic aid expires. In response to the newly announced budget deal, New Jersey Policy Perspective (NJPP) releases the following statement.

Nicole Rodriguez, President, NJPP:

“The corporate transit fee included in the budget deal should have riders breathing a sigh of relief. This dedicated funding is a historic first for NJ Transit and will go a long way toward getting the agency out of the red and back on track. Mass transit is a cornerstone of the state’s economy, so it’s only fair to have the most profitable corporations in the world help fund the infrastructure they benefit from. And regardless of what business lobbyists say, this fee will only be paid by ultra-wealthy corporations like Amazon and Walmart, most of which are headquartered out of state.

“While this news is historic, so are the constant delays and cancellations riders have endured over the past week. NJ Transit has been underfunded for decades, and more support from state and federal lawmakers will be needed to upgrade our infrastructure. But make no mistake, this is a huge win for all of the riders, working families, and communities that rely on NJ Transit’s bus and rail service.”

Read NJPP’s analysis detailing which corporations would pay the Corporate Transit Fee.

Read NJPP’s report detailing the history of underfunding at NJ Transit.

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