Today, the New Jersey Legislature passed the appropriations act (S2025/A4700) for Fiscal Year 2025, sending the state budget to Governor Murphy’s desk. The budget includes the new Corporate Transit Fee, which dedicates approximately $1 billion to NJ Transit. The 2.5 percent fee only applies to corporations with more than $10 million in profits and will primarily be paid by out-of-state corporations like Amazon, Microsoft, and Walmart. The budget also includes New Jersey’s fourth consecutive full pension payment and increased school funding. In response to the new state budget advancing, New Jersey Policy Perspective (NJPP) issues the following statement.
Nicole Rodriguez, President, NJPP:
“Budgets are about choices, and this budget shows how we all benefit when lawmakers choose people over corporate profits. The new Corporate Transit Fee will literally save NJ Transit, getting the agency’s finances back on track and preventing harmful service cuts that would leave riders stranded. This sets an example of how we can fund essential infrastructure that we all rely on, and how anything is possible when profitable corporations contribute their fair share in taxes. Between the new dedicated funding for transit, robust school funding, and a full pension payment, the budget bill represents a vision for New Jersey where everyone has a fair shot, not just those with high salaries.
“But the work isn’t over if we want an economy that works for the many and not a select few. Maintaining these types of public investments will require more revenue, so state lawmakers will have to find new ways to ensure the wealth generated in New Jersey is reinvested right back into New Jersey, rather than sitting in the bank accounts of corporate executives and shareholders.”
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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