Outdated and Ineffective: Why New Jersey Needs to Update Its Top Anti-Poverty Program

New Jersey’s economy has changed in many ways since the 1990s, but the state’s premier social safety net program has remained largely the same. Designed to support families with little to no income, Temporary Assistance for Needy Families (TANF) has not kept up with the rising cost of living or the evolving needs of families with children.

The program maintains outdated administrative barriers that prevent many families from receiving assistance when they need it most.[i] For the families that do qualify, the monthly grant amount remains far too low to cover basic necessities or protect against the harms of deep poverty. By updating the state’s TANF program and raising benefit levels to reflect today’s economic realities, New Jersey can help families build a more stable future for themselves, their children, and their communities.

Supporting families as they navigate financial challenges has far-reaching benefits in both the short- and long-term. Beyond the immediate relief of helping families put food on the table and keep a roof over their heads, having a stable household income increases the likelihood of children succeeding in school, pursuing higher education, and finding good-paying jobs as adults.[ii]

A stronger, more effective safety net would also help address systemic economic disparities across the state. Due to the legacy of policies that prevented people from fully participating in the economy based on their race or gender, women, Black, and Hispanic/Latinx residents of New Jersey have disproportionately lower incomes and are the least likely to afford rising costs in housing, transportation, health care, and other essential needs.[iii]

To address rising costs, deep-seeded inequities, and ensure that TANF fulfills its intended purpose, New Jersey must raise the monthly grant amount to at least 50 percent of the federal poverty level. Additionally, grant amounts should be adjusted for inflation so the program remains an effective safety net in future years. These reforms would promote stronger families and more resilient communities where everyone has the resources they need and deserve.

TANF Grant Amounts Fall Short in Today’s Economy

Targeted to families with the lowest incomes, New Jersey’s TANF program falls significantly short of meeting even the most basic needs, let alone enabling families to break the cycle of poverty and become self-sufficient. The current TANF grant only amounts to half of what the federal government considers “deep poverty,” which is 50 percent of the federal poverty level.[iv] Put another way, the current TANF grant in New Jersey is equal to only one-fourth of the federal government’s threshold for living in poverty. It’s worth noting that these are nationwide metrics that do not account for geographic differences in the cost of living, so this significantly undercounts the number of people living in poverty in states like New Jersey, where costs are higher.

For a family of three, the TANF monthly grant provides a maximum of $559 per month – only about $6,708 per year.[v] This is more than $6,000 below the deep poverty level.[vi] When accounting for the actual cost of living in New Jersey, a single parent with two children needs roughly $86,759 per year in order to meet their basic needs.[vii] Even excluding child care costs, a single parent with two children needs almost $63,000 per year, more than twice the federal poverty level for a family of three, to cover bills.[viii]

TANF Benefits Fall Far Below Deep Poverty Levels

New Jersey’s low TANF amount has little purchasing power in today’s economy, especially compared to when the program was created. Since 1998, New Jersey’s TANF grant has lost approximately 30 percent of its value.[ix] As a result, the assistance that a family receives each month — which used to cover the average cost of groceries with enough left over to help pay other bills and living expenses like rent — now barely covers the average cost for the month’s groceries.

New Jersey's TANF Benefits Have Lost 30 Percent of Their Value Since 1998

Without adjusting for inflation each year, families living in poverty receiving TANF cannot keep up with rising living costs to meet basic needs. Additionally, as this minimal support diminishes over time, the burden of the onerous and time-intensive application process makes it more likely that eligible families may never even apply.[x]

It’s Time to Provide Families with Enough Support to Build Their Futures

After nearly three decades, it’s time to finally update New Jersey’s TANF program so it’s a more effective safety net for families when they fall on hard times. While the program requires broader reforms to lower administrative barriers to access and eligibility, raising the grant amount is an easy and logical first step. The program’s current grant amounts are far too low, putting the health and well-being of low-income families at risk, and their ability to break the cycle of poverty out of their reach. The lack of financial assistance exacerbates housing insecurity, intensifies food insecurity, and limits access to essential health care services.[xi] Consequently, children growing up in poverty face greater challenges in school, hindering their prospects for a prosperous future and perpetuating intergenerational cycles of poverty.[xii]

In confronting the harms of deep poverty as costs continue to rise, policymakers must recognize the urgency of updating the state’s TANF program: Each day of delay for families can make a life-changing difference. By increasing the TANF grant amount, New Jersey can reaffirm its commitment to a stronger and fairer society where families have the resources necessary to overcome financial hardship and build a stable future.


End Notes

[i] While this report focuses on TANF monthly grant levels and how they are insufficient in helping families escape deep poverty, there are numerous administrative reforms needed to reduce barriers to assistance and eligibility. These include smoothing the off-ramps so that individuals do not face such steep cliffs for assistance, lowering administrative barriers to applications and documentation for the program, improving eligibility levels to better match today’s economic realities, and more. These reforms are further discussed in New Jersey Policy Perspective’s 2020 report, Promoting Equal Opportunities for Children Living in Poverty, https://www.njpp.org/publications/report/promoting-equal-opportunities-for-children-living-in-poverty/, as well as in testimony provided by New Jersey Policy Perspective to the New Jersey Legislature. These testimonies can be found on the NJPP website, such as: https://www.njpp.org/publications/testimony/its-time-for-new-jersey-to-fix-workfirst-nj-to-better-support-low-income-families/

[ii] Center on Budget and Policy Priorities, Economic Security Programs Help Low-Income Children Succeed Over Long Term, Many Studies Find, 2017. https://www.cbpp.org/research/poverty-and-inequality/economic-security-programs-help-low-income-children-succeed-over

[iii] Rutgers University – New Jersey State Policy Lab and the Center for Women and Work, Who Experienced the Greatest Financial Burden from Inflation in New Jersey? An Examination of Spending, Earnings, and Employment, 2023. https://policylab.rutgers.edu/report-release-who-experienced-the-greatest-financial-burden-from-inflation-in-nj/

[iv] UC Davis Center for Poverty & Inequality Research, What is “Deep Poverty”?, 2022. https://poverty.ucdavis.edu/faq/what-deep-poverty; Center on Budget and Policy Priorities Priorities, Chart Book: Temporary Assistance for Needy Families (TANF) at 26, 2022. https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26

[v] NJPP Analysis of data in Attachment B of: New Jersey Department of Human Services — Division of Family Development, New Jersey State Plan for Temporary Assistance for Needy Families (TANF), FFY 2021-FFY 2023, 2020. https://www.state.nj.us/humanservices/dfd/programs/workfirstnj/tanf_2021_23_st_plan.pdf

[vi] NJPP Analysis of Attachment B of: New Jersey Department of Human Services — Division of Family Development, New Jersey State Plan for Temporary Assistance for Needy Families (TANF), FFY 2024-FFY 2026, 2023. https://www.nj.gov/humanservices/providers/grants/public/publicnoticefiles/Draft%20New%20Jersey%20State%20Plan%20for%20Temporary%20Assistance%20for%20Needy%20Families%20(TANF)%20FFY%202024%20-%20FFY%202026.pdf; U.S. Department of Health and Human Services, 2023 Federal Poverty Level Guidelines, https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines

[vii] It is important to note that this assumes approximately the same costs for the goods and services in terms of their portion of the bills since the original report, as it is only updated to account for inflation. Note that the pandemic led to a significant increase in prices and, for some services and goods, a significant change that far outpaced that of inflation. This means that these true poverty level estimates are likely conservative estimates. Sources for calculation: NJPP Analysis of Legal Services of New Jersey, True Poverty: What It Takes to Avoid Poverty and Deprivation in the Garden State, 2021, pg. 23. https://proxy.lsnj.org/rcenter/GetPublicDocument/00b5ccde-9b51-48de-abe3-55dd767a685a; Legal Services of New Jersey, New Jersey True Poverty Tracker: A Poverty Benchmarks Report Series, 2022. https://proxy.lsnj.org/rcenter/GetPublicDocument/380358ae-ad82-43a2-8e35-cd243030dbbc.

[viii] NJPP Analysis of data from the Federal Poverty Levels (https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines) and Legal Services of New Jersey, True Poverty: What It Takes to Avoid Poverty and Deprivation in the Garden State, 2021, pg. 28. https://proxy.lsnj.org/rcenter/GetPublicDocument/00b5ccde-9b51-48de-abe3-55dd767a685a

[ix] NJPP Analysis of New Jersey state budgets and Department of Human Services report on grant amounts and inflation rates.

[x] Urban Institute, Few Families Receive the TANF Cash Assistance They’re Eligible For, 2023. https://www.urban.org/urban-wire/few-families-receive-tanf-cash-assistance-theyre-eligible

[xi] There are numerous studies and reports showing the connections between poverty and various outcomes, as well as how the effects of each issue are intertwined. See for example: Institute for Research on Poverty, Unaffordable America: Poverty, Housing, And Eviction, 2015. https://www.irp.wisc.edu/resource/unaffordable-america-poverty-housing-and-eviction/; Feeding America, Food Insecurity among Overall (all ages) Population in New Jersey, 2023. https://map.feedingamerica.org/county/2021/overall/new-jersey; Health Affairs, Health, Income, & Poverty: Where We Are & What Could Help, 2018. https://www.healthaffairs.org/do/10.1377/hpb20180817.901935/; Health Affairs, Economic Well-Being And Health: The Role Of Income Support Programs In Promoting Health And Advancing Health Equity, 2022. https://www.healthaffairs.org/doi/10.1377/hlthaff.2022.00846; New Jersey Hospital Association, New Jersey’s Most Vulnerable Communities: A Zip Code Analysis of Social Gaps and Their Impact on Health, 2019. https://www.njha.com/media/578105/CHART-NJ-Most-Vulnerable-Communities.pdf; Center for Budget and Policy Priorites, Chart Book: Housing and Health Problems Are Intertwined. So Are Their Solutions, 2022. https://www.cbpp.org/research/health/housing-and-health-problems-are-intertwined-so-are-their-solutions

[xii] For a summary of these effects, please see: The Center for Law and Social Policy, The Enduring Effects of Childhood Poverty, 2023. https://www.clasp.org/blog/the-enduring-effects-of-childhood-poverty/

New Immigrants Drive Economic Growth in New Jersey

This report was co-authored by Anthony Capote, Senior Policy Analyst at the Immigration Research Initiative, and David Dyssegaard Kallick, Director of the Immigration Research Initiative.

New Jersey’s fundamental strength lies in the rich tapestry of people who call the Garden State home, reflecting a diverse range of cultures and backgrounds. Nearly one in four residents (2.2 million) are immigrants,[i] who play a pivotal role in shaping the state’s identity.

Immigrants bring a wealth of skills and talents that enrich New Jersey’s arts, cuisine, and entertainment, add to the intellectual achievements across various fields, and play essential roles in the private and public sectors. Across the state, immigrants make significant contributions to their local communities and the broader economy through their labor, entrepreneurial endeavors, and tax contributions.

Despite the positive role immigrants play in New Jersey and around the country, there has been a rise in xenophobia and anti-immigrant policymaking in a number of states. It is imperative for New Jersey to uphold its values of inclusivity and support for immigrants. Championing “Fair and Welcoming” policies that lower barriers to essential public services and protect residents from discrimination and workplace abuses is not just a moral obligation but a strategic necessity for bolstering the state’s economy.

To measure the economic contributions of new immigrants, this research brief by New Jersey Policy Perspective and the Immigration Research Initiative models the long-term economic outcomes for newly arrived immigrants and projects that there will be significant wage earnings and tax contributions in their first year of arrival and even more over the long run.

Newly Arriving Immigrants Immediately Get to Work and Contribute to the Economy

Newly arriving immigrants face multiple challenges as they navigate language barriers, adapt to unfamiliar cultures and systems, and adjust to a new way of life. Despite these challenges, many swiftly integrate into the workforce within their first year. As a result, each 1,000 new immigrants can be expected to earn a combined $21 million in annual wages, enhancing the economic vitality of their communities where they work and amplifying local spending power where they live. After five years, the same 1,000 immigrants can be expected to increase their wages by about 57 percent, totaling $33 million in aggregate wages.

New Immigrants Work and Pay Taxes - Table outlining the aggregate wages and state/local taxes paid per 1,000 during the first year and after 5 years.

As immigrants settle in and establish their roots in New Jersey, state and local tax revenues see an uptick. For every 1,000 workers, state and local tax revenues are poised to increase by $1.8 million. Over the span of approximately five years, each 1,000 newly arrived immigrants collectively add to state and local tax revenues a total of $2.9 million, a 61 percent increase from their initial year. Such increases in state and local tax revenues translate into broader benefits for all residents, providing additional funding for schools, libraries, transit infrastructure, and other public goods.

However, more work remains to be done at the federal level to reduce barriers to work authorization for newly arriving immigrants. Earnings and tax contributions are contingent upon pathways to work authorization, and for those unable to gain work authorization, the trajectory toward upward mobility is much more limited.

Supporting Immigrants Makes New Jersey Stronger and Fairer for All

New Jersey’s commitment to inclusivity and fairness is evident through past policies that extend vital resources such as driver’s licenses, health care for all kids, language services, and pandemic relief to all, regardless of their immigration status. As a state built on diversity and resilience, it is critical to reaffirm this commitment as a beacon of hope for those fleeing persecution and seeking refuge.

Lawmakers must translate these values into tangible action, aligning state policies with equity and hospitality by improving immigrants’ wages and lowering barriers to health care, legal services, quality education, affordable housing, and more. By doing so, New Jersey can be a stronger and fairer state where everyone is valued, protected, and given a chance to thrive.


End Notes

[i] 2022 American Community Survey data, https://www.census.gov/programs-surveys/acs/data.html.


Methodology

To model the likely outcomes for new arrivals, IRI looked at immigrants in New Jersey who had been in the country for less than two years, and who do not speak English very well.

To model the outcome for those who have been here for approximately five years, we expanded the analysis to include those who speak English “very well,” but did not include those who speak “only English” at home, reflecting the fact that most — though not all — immigrants learn to speak the language very well within five years. We did not include in the analysis people who speak “only English” at home. To get a robust sample size, IRI looked at two years for new arrivals and five to ten years for those who have been here longer.

The tax analysis is based on a simple use of the Institute on Taxation and Economic Policy report, “Who Pays: A Distributional Analysis of the Tax Systems in All 50 States.” According to the most recent, 7th Edition, the bottom 20 percent of tax filers in New Jersey pay 8.8 percent of their income in state and local taxes. We use this as the effective tax rate for newly arriving immigrants as well as for those who have been here for five years.

Many, but not all, of the workers would have work authorization. Many newly arriving immigrants are eligible to apply for Temporary Protected Status, humanitarian parole, asylum, or other designations that give them temporary or permanent work permits. The Institute on Taxation and Economic Policy’s related report, “Undocumented Immigrants’ State and Local Tax Contributions,” shows that immigrants without work authorization pay an effective tax rate of 7.7 percent in New Jersey, a little lower than those with work authorization. The overall tax estimate might be increased by some families with incomes on the higher range, and decreased some by the proportion of immigrants who are undocumented.

About the Authors

Marleina Ubel is a senior policy analyst at New Jersey Policy Perspective.

Anthony Capote is a senior policy analyst at the Immigration Research Initiative.

David Dyssegaard Kallick is director of the Immigration Research Initiative.

Family Leave Expansion Is Good for Business, Improving Retention and Reducing Labor Costs

Good morning, Chair and thank you to the committee for allowing me to testify today. Despite lobbyist claims to the contrary, family leave expansion is good for business, improving retention and reducing labor costs.

1) When family leave and job protection expand, businesses show no negative effects and report slightly positive impact on employer ability to deal with employee absences. Two large studies on employers in states with paid leave show that the vast majority of businesses show no negative impact on their business operations. Most employers report positive or “no effect” on business outcomes. Smaller businesses were actually less likely to report negative effects.

New Jersey-specific research from the initial implementation of paid leave showed similar results, showing minimal impact on profitability, productivity, or turnover after paid leave

2) Most businesses support, rather than oppose, expansions in family leave protection. Despite business interest group opposition to paid leave expansion, surveys of actual businesses routinely show majority support for increasing paid family leave. In one poll from 2017, surveyed small business owners (who were disproportionately white, male, and Republican) showed 71% support for expanding job protection to smaller businesses.

3) Family leave use helps, rather than hurts, small businesses. Research from other states shows that small firms experience a reduction in labor costs when workers use paid leave.

As prior testimony and legislator statements made clear, turnover at small firms can be much more damaging than at large firms where employees are more easily replaced. But this actually militates in favor of family leave job protection at small firms, because encouraging paid leave lowers turnover and increases retention of employees. When leave was implemented, wage costs did not go up, while turnover rates went down, with no effect on firm closure.

The doomsday scenarios painted by the business lobby have not come to pass in previous family leave and job protection expansion, nor in states without New Jersey’s onerous job protection restrictions.

For the Many NJ: Governor Murphy Gives Ultra Wealthy Corporations $1 Billion, Passes Cost to Transit Riders

New Jersey Transit announced their plan today to make up for budget shortfalls, including a $119 million shortfall in fiscal year 2025, by raising fares. This comes on the heels of Governor Murphy’s decision to deliver a $1 billion tax cut to the wealthiest corporations in the state by refusing to renew the Corporate Business Tax surtax earlier this month. For the Many NJ releases the following statement in response:

Eric Benson, Campaign Director, For The Many NJ:

“Fare hikes on everyday New Jerseyans does nothing to make the state more affordable and shows why we need to have fair sustainable revenue like the Corporation Business Tax surtax. While big corporations are getting $1 billion in tax cuts, New Jersey’s leaders have no plan to fill budget holes and instead are throwing the costs to working families.

If the Governor and legislature don’t get serious about raising revenues from the wealthy and powerful, it will be the working- and middle-class residents of the state who end up paying the price.”

# # #

For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

Governor’s Stronger and Fairer Economy Can’t Overlook Fiscal Elephant

Today, Governor Phil Murphy delivered his sixth annual State of the State address, where he focused on ways to make New Jersey the best place anywhere to raise a family. The speech highlighted the critical role of state government in building an economy that works for everyone, but the governor did not address how the state would pay for these investments after lawmakers allowed the Corporate Business Tax surcharge to expire at the start of the year. In response to the address, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“There’s a lot to like in Governor Murphy’s address, from protecting rights and freedoms to promoting affordability and economic security. This approach to governing recognizes the critical role of state government in making New Jersey the best place to live, go to school, raise a family, or start a business. The last six years are more than enough proof that this model works, and that we can strengthen public services and have a booming economy at the same time.

“But just as the governor attributed this success to confronting New Jersey’s financial challenges, his address overlooks one giant elephant in the room that could unravel it all. As it stands, New Jersey is not raising enough revenue to balance its current budget, and the state’s financial outlook is made worse thanks to a new billion-dollar corporate tax cut that just went into effect.

“By scrapping the corporate tax surcharge for big players like Amazon and Walmart, state lawmakers jeopardize the future of the same investments the governor celebrated in his remarks. To keep up the momentum and build an economy that is truly stronger and fairer for all, Governor Murphy and the Legislature must undo this tax cut for the most profitable corporations in the world.”

# # #

Coalition of 50 Advocacy Organizations and Labor Unions Call on Lawmakers to Stop the Corporate Tax Cut for Amazon and Walmart

On Friday, a diverse coalition of 50 advocacy organizations, labor unions, and community groups sent an open letter to Governor Murphy, Senate President Scutari, and Assembly Speaker Coughlin urging them to extend the Corporate Business Tax surcharge on the world’s most profitable corporations.

With tax collections nearly $400 million behind last year, state lawmakers will need more revenue to balance the state budget and avoid drastic cuts to NJ Transit, public school funding, affordable housing, child care, tax credits for working families, and much more.

“As we approach the end of a legislative session with lower revenues and a potential recession on the horizon, this is exactly the wrong time to be giving the most profitable corporations a $1 billion tax cut. Such a gift for corporations and their shareholders takes away resources from our schools and infrastructure and undermines funding for areas that promote opportunity for all: affordable housing, quality health care, reliable mass transit, and clean energy,” the letter states.

Earlier this month, Assemblyman Tom Giblin (D-Essex) introduced legislation (A5878) that would maintain the Corporate Business Tax surcharge and dedicate it to transit, education, and public employee health benefits. Senate President Nick Scutari (D-Union) also spoke out in support of maintaining the surcharge given the state of New Jersey’s finances.

The Corporate Business Tax surcharge is a 2.5 percent tax on corporations with profits exceeding $1 million. The surcharge is paid by the top 2 percent of the wealthiest corporations and is primarily paid by multinational corporations like Amazon and Walmart that make profits in New Jersey but are not headquartered here.

“Now is the time for more revenue, not less,” the letter states. “The wealthiest 2 percent of businesses should be paying more, not getting a tax cut when everyday New Jerseyans are struggling. We keep hearing about kitchen-table issues and middle-class New Jerseyans. How will corporate tax cuts help them? If we intend to invest in the programs we know make New Jersey an engine of economic growth and opportunity, the wealthy few must pay what they owe.”

The letter calls for lawmakers to extend the Corporate Business Tax surcharge before the end of the lame duck session so the state can continue investing in the public programs and services that benefit New Jersey’s families, communities, and the broader economy.

The letter was signed by 50 policy, advocacy, labor, and community organizations, including: 32BJ SEIU, ACLU of New Jersey, Communications Workers of America, Fair Share Housing Center, Latino Action Network, Make the Road New Jersey, New Jersey Citizen Action, New Jersey Education Association, New Jersey Institute for Social Justice, New Jersey Policy Perspective, New Jersey Working Families Party, Planned Parenthood Action Fund of New Jersey, Salvation and Social Justice, and the Sierra Club.

A copy of the letter can be read here.

# # #

For The Many is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

New Jersey’s Lowest Income Families Could Lose Their Emergency Assistance

Thousands of low-income families across New Jersey could lose vital cash support in February unless lawmakers extend a provision in the state’s Emergency Assistance program that eased restrictive limits on benefits.[i] A lifeline for families who fall on hard times and risk losing their housing, Emergency Assistance provides direct support to cover the costs of back rent or mortgage payments, utilities, food, clothing, and more to protect residents from the harmful effects of poverty and homelessness.

Like many other cash assistance programs for low-income families, Emergency Assistance is an effective anti-poverty tool that is undermined by outdated and punitive restrictions implemented during the welfare reform movement of the 1990s, including arbitrary lifetime limits on benefits. In 2018, state lawmakers recognized that the 12-month lifetime limit on Emergency Assistance was overly restrictive and created new exemptions for families facing the greatest barriers to stable housing and a secure income. However, the exemptions in this law are temporary and are set to expire in February 2024 unless lawmakers act fast.

The 2018 law lifted the lifetime limit for residents who are: living with a disability; full-time caretakers of children or dependents with disabilities; over 60 years old; receiving Supplemental Security Income (SSI); or facing persistent barriers to employment.[ii] During the current lame duck session, New Jersey lawmakers and Governor Murphy can make sure these low-income residents and their families continue to qualify for the cash support they need by enacting S3960/A5549 and maintaining the exemptions to lifetime limits on Emergency Assistance implemented five years ago.

Arbitrary Time Limits on Cash Assistance are Punitive and Harmful for Low-Income Families

The time limits in New Jersey’s cash assistance programs within Work First New Jersey (WFNJ) are not grounded in evidence but come from outdated and discriminatory stereotypes from the 1990s welfare reform movement.[iii] Lifetime limits on benefits, like the 12-month limit in Emergency Assistance, set arbitrary cutoffs for people who often still need assistance and face an imminent risk of losing their housing. This punitive approach means that assistance is not provided when it is needed most, further contributing to the cycle of poverty and making it harder for families to build a strong foundation and invest in their future.[iv]

Emergency Assistance benefits provide additional support to families participating in other WorkFirst New Jersey programs — Temporary Assistance for Needy Families (TANF) and General Assistance — during crisis situations so they can stay housed, fed, and clothed. The assistance ranges in dollar amounts depending on the circumstances, and families can apply for each month they are in need for up to 12 months total. Continuation of benefits requires regular re-assessments of the participant’s need and development of a plan for recovery.[v] Despite its role in filling a critical gap in the state’s cash support system, Emergency Assistance has the shortest lifetime limit of the WorkFirst New Jersey programs, so most participants are only eligible for one-fifth of the total time they are allowed to access other programs.[vi]

In Fiscal Year 2023, more than 5,700 residents receiving TANF and General Assistance each month also received Emergency Assistance benefits, representing roughly 13 percent of recipients,[vii] with an average grant of $1,032 per month.[viii] Thousands of these families received Emergency Assistance every year due to the 2018 law, further demonstrating how more families can get the support they need without lifetime limits in effect.[ix] With the harm of the pandemic still felt throughout the state and far too many families living in poverty, this additional assistance is essential for low-income families.

Unless lawmakers act soon and pass S3960/A5549, New Jersey risks slipping backward in its support for low-income families. There is no sound policy rationale to maintain arbitrary and outdated lifetime limits on assistance, and this lame duck session is an opportunity to strengthen cash assistance programs and create the robust safety net that New Jersey families deserve.


End Notes

[i] NorthJersey.com, Most vulnerable could become homeless if NJ Legislature fails to extend aid, advocates say, 2023. https://www.northjersey.com/story/news/2023/11/21/vulnerable-could-end-up-homeless-if-nj-legislature-fails-to-extend-aid-shelters/71657027007

[ii] Legal Services of New Jersey, Emergency Assistance and Time Limit Extensions, 2022. https://www.lsnjlaw.org/legal-topics/government-aid-services/emergency-assistance/pages/ea-time-limit-aspx; New Jersey Department of Human Services, Work First New Jersey Emergency Assistance Training, 2019. https://www.nj.gov/humanservices/dmhas/information/provider/Provider_Meetings/2019/DMHAS%20EA_080119_SJM.pdf; N.J. Stat. § 44:10-51 (3). https://casetext.com/statute/new-jersey-statutes/title-44-poor/chapter-4410-reference-to-county-welfare-board-to-mean-reference-to-county-welfare-agency/section-4410-51-provision-of-emergency-assistance

[iii] Center on Budget and Policy Priorities, TANF Policies Reflect Racist Legacy of Cash Assistance, 2021. https://www.cbpp.org/research/income-security/tanf-policies-reflect-racist-legacy-of-cash-assistance. Congressional Research Service, The Temporary Assistance for Needy Families (TANF) Block Grant: A Legislative History, 2023.https://sgp.fas.org/crs/misc/R44668.pdf

[iv] Center on Budget and Policy Priorities, Three Reasons Why Providing Cash to Families With Children Is a Sound Policy Investment, 2022. https://www.cbpp.org/research/income-security/three-reasons-why-providing-cash-to-families-with-children-is-a-sound

[v] New Jersey Department of Human Services, Work First New Jersey Emergency Assistance Training, 2019, pg. 18-19. https://www.nj.gov/humanservices/dmhas/information/provider/Provider_Meetings/2019/DMHAS%20EA_080119_SJM.pdf

[vi] New Jersey Department of Human Services, Work First New Jersey Emergency Assistance Training, 2019, pg. 25. https://www.nj.gov/humanservices/dmhas/information/provider/Provider_Meetings/2019/DMHAS%20EA_080119_SJM.pdf

[vii] NJPP Analysis of New Jersey Treasury – Office of Management and Budget, Governor’s FY2024 Detailed Budget, 2023, pg. D-224. https://www.nj.gov/treasury/omb/publications/24budget/FY2024BudgetDetail-Full.pdf

[viii] New Jersey Treasury – Office of Management and Budget, Governor’s FY2024 Detailed Budget, 2023, pg. D-224. https://www.nj.gov/treasury/omb/publications/24budget/FY2024BudgetDetail-Full.pdf

[ix] New Jersey Office of Legislative Services, Legislative Fiscal Estimate for S866, 2018. https://pub.njleg.state.nj.us/Bills/2018/S1000/866_E2.PDF

Advocates, Unions, and Policy Experts Praise New Bill to Extend Surcharge on Corporate Profits

A week after hundreds of union members and advocates rallied outside the State House to oppose a $1 billion corporate tax cut, momentum is building to extend New Jersey’s Corporate Business Tax surcharge with new legislation (A5878) introduced by Assemblyman Tom Giblin (D-Essex).

Earlier this month, Senate President Nick Scutari (D-Union) spoke out in support of maintaining the surcharge to fully fund NJ Transit, which is facing a looming $1 billion budget shortfall. The surcharge on corporate profits is only paid by the most profitable top 2 percent of corporations and is primarily paid by large, multinational corporations like Amazon, Walmart, and ExxonMobil — not small or midsize businesses located in New Jersey.

Advocates, unions, and policy experts from the For The Many NJ coalition praised the introduction of the bill as a way to promote tax fairness and fund public services, programs, and infrastructure that everyday New Jerseyans rely on.

Nicole Rodriguez, President, New Jersey Policy Perspective (NJPP):
“This bill shows that the Legislature is listening to the many voices across the state saying no to this billion-dollar tax cut for big corporations. The surcharge is a highly targeted tax that pays for the essential public services that keep our communities and economy running. New Jersey needs this revenue to balance its budget and avoid damaging cuts to public transit and programs that working families rely on.”

Antoinette Miles, Interim Director, New Jersey Working Families Party:
“Just a week ago, the voices of workers and grassroots activists echoed throughout the State House, and this bill shows how those voices have been heard. Now it’s time for the rest of the Legislature and the Governor to listen, too, and stop this tax cut for big corporations today.”

Nedia Morsy, Director of Strategic Projects, Make the Road New Jersey:
“New Jersey’s transit riders and workers need a well-funded public transit system, not fare hikes and service cuts. This bill would go a long way towards finally getting a dedicated funding source for NJ Transit, rather than relying on patches and short-term fixes. If Walmart and Amazon are making their profits off of New Jersey consumers and workers, then New Jersey should be making sure they pay us back for the transit and infrastructure that generate those profits.”

Debbie White, RN, President, Health Professionals and Allied Employees:
“Legislators should support the extension of the corporate business tax to protect the financial stability of New Jersey. The revenue generated by this tax on wealthy corporations has supported healthcare, transportation, education and other projects the residents of New Jersey rely on every day. Without this source of revenue, we will see a negative impact on New Jersey’s infrastructure.”

Liz Glynn, Director of Organizing, New Jersey Citizen Action:
“As corporate profits continue to break records, working and middle-class families in New Jersey continue to struggle to make ends meet. The public services they rely on need robust funding, and taxing corporate profits from the world’s biggest companies will help ensure that affordable housing and healthcare, infrastructure, and essential services have sustainable funding into the future. Now is not the time to cut corporate taxes once again.”

Amy Goldsmith, State Director, Clean Water Action:
“New Jersey’s needs are great. On the environment alone, clean energy, lead abatement programs, NJ Transit, and the Department of Environmental Protection are all underfunded while state revenues are down, federal funds are drying up, and a fiscal cliff is looming. Kudos to Assemblyman Giblin for making sure we don’t lose a billion dollars by ensuring mega-corporations pay their fair share. It’s now time for the rest of the Legislature and Governor to step up.”

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For The Many is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

Family Leave Expansion Would Advance Equity and Eliminate Fear of Retaliation for All of New Jersey’s Workers

Every worker in New Jersey deserves the right to take paid family leave to bond with a new child or care for a loved one. No worker should fear losing their job to care for their ill parent, or spend precious weeks with a newborn. Certainly something as arbitrary as the size of their employer should not dictate whether they can take family leave without fear of discipline or termination.

As NJPP’s June 2023 report More Than One in Five New Jersey Workers Can Still Be Fired for Taking Paid Family Leave noted, over 800,000 workers in New Jersey can be fired for taking family leave. This should never be the case.

A-5611 takes a step towards protecting this right, but the proposed amendment to the bill still leaves businesses with fewer than 5 employees unprotected – nearly 200,000 workers or 5 percent of the total workforce.

Additionally, the Family Leave Act still has gaps for coverage for workers with less than 1,000 hours worked in the last 12 months or workers who have worked for their employer for less than one year. Roughly 400,000 New Jersey workers — or 10 percent of the workforce — worked fewer than 1,000 hours and therefore did not get job protection. Workers with fewer hours nonetheless need job protection to take time to care for their loved ones.

One recent federal proposal, the Job Protection Act, would eliminate the hours requirement and reduce the tenure requirement to 90 days for the federal Family and Medical Leave Act.

Job protection alone also does not solve the many remaining gaps in coverage in the paid family leave insurance program (FLI). The comprehensive A-5703 addresses many of these concerns in one package that should move alongside A-5611 to ensure that all workers who have an ill loved one or new child to bond with have access to paid time off of work.

Without adequate job protection for all workers and other program improvements detailed in A-5703, family leave runs the risk of becoming a luxury product for higher-income workers, rather than a benefit that all workers can use. Every worker in New Jersey should be able to take family leave without fear of economic penalties.

Workers and Advocates Tell Lawmakers: Do Not Cut a $1 Billion Check to Amazon and Walmart

With the end of the legislative session approaching, more than 100 workers, policy experts, and advocates from For The Many NJ rallied outside the State House to tell lawmakers: Do not cut a $1 billion check to the world’s most profitable businesses!

As state tax collections continue to come in lower than projected, members of the coalition warned that not renewing the Corporate Business Tax surcharge would threaten essential public services, programs, and infrastructure that everyday New Jerseyans rely on.

“We cannot give the largest corporations in the world a $1 billion tax cut on the backs of working people across New Jersey,” said Antoinette Miles, Interim Director of the New Jersey Working Families Alliance. “We need this revenue to fund our communities, our schools, our infrastructure, and our environment. The writing is on the wall with the fiscal cliffs on the horizon, and we have a solution right here. Lawmakers need to stop this tax cut and have these big corporations pay what they owe.”

Eliminating the corporate surcharge, a 2.5 percent tax paid only by corporations with annual profits over $1 million, would cost the state $1 billion every year. Governor Murphy said he would allow the tax to expire at the end of the year in his budget address, stating “A deal is a deal.” The state’s financial outlook has dramatically shifted since then, however, as the state is now operating at a structural deficit.

“We’ve heard a lot about a deal being a deal, but why is a deal with big out of state corporations the one that counts?” asked Peter Chen, Senior Policy Analyst at NJPP. “What about the deal to New Jersey’s commuters and students who ride buses and trains to get to work and school? Instead of honoring a deal to fix NJ Transit, we’re writing a check to Amazon and Wells Fargo instead. These are not small businesses or mom-and-pops or pizzerias paying this tax, it’s the world’s largest corporations.”

A report released earlier this year by New Jersey Policy Perspective (NJPP) found that only the most profitable 2 percent of businesses operating in New Jersey — including out of state companies like Amazon and Walmart — pay the surcharge, while 98 percent of businesses do not pay it. The report also found that more than 70 percent of the tax cut would go to companies with more than $10 million in annual profits.

“Public employees saw the damage caused during the Christie era when the state failed to raise revenues to pay for health care, education, and infrastructure,” said Dennis Trainor, CWA District 1 Vice President. “At a time when the state needs to strengthen its investments and ensure vital services to the public and continue to fully fund the pension, our lawmakers should not be robbing the state of $1 billion to hand to the likes of Amazon and Walmart.”

Earlier this month, Senate President Nick Scutari (D-Union) said he was considering maintaining the surcharge to fully fund NJ Transit, which is facing a looming $1 billion budget shortfall. Millions of residents risk losing bus and train service they rely on if the agency’’s budget is balanced through cuts.

“​​New Jersey Transit is facing a massive deficit, and that means fare hikes and service cuts for me and hundreds of thousands of working-class New Jerseyans who use transit to get to work,” said Margarita Rodriguez, Passaic resident and member of Make the Road New Jersey. “But instead of standing up for working families, Governor Murphy, Assembly Budget Chair Eliana Pintor Marin, and Senate Budget Chair Paul Sarlo will give a billion-dollar tax break to mega-wealthy corporations like Amazon, a well-known violator of workers’ rights. Which side are you on? Do you stand with New Jersey workers and students, who need a functioning public transit system, or billionaire corporations? Don’t let NJ Transit crumble. Listen to your constituents and keep the Corporate Business Tax Surcharge. It is time Amazon pays its fair share.”

Members of the coalition also pointed to other programs and services that are underfunded or at risk of being cut, from affordable housing to environmental protection. Six percent of the corporate business tax is dedicated to environmental purposes, for example, funding open space preservation and the upkeep of city parks, farmland, and historic sites.

“Corporate business tax funding is vital to maintaining open space, which is important for outdoor recreation and is also an economic boon. Outdoor recreation in New Jersey was valued at $20.3 billion in 2021 alone,” said Ed Potosnak, Executive Director, New Jersey League of Conservation Voters. “This money should continue to be invested in open spaces, which brings environmental and economic benefits for the entire state. We’re asking Governor Murphy and the New Jersey Legislature to continue our state’s long legacy of support and funding for land preservation and open space by not letting the surcharge expire. The expiration of the surcharge on the 2 percent wealthiest corporations would mean the loss of $480 million in critical open space funding over just 10 years and will do irreparable harm to our beautiful state.”

“We have a lot of talents in New Jersey, and one of them is being able to walk and chew gum at the same time,” said Matthew Hersh, Director of Policy and Advocacy at the Housing and Community Development Network of New Jersey. “We should not have to consider abandoning an immensely important revenue stream at the risk of losing tools that help all New Jerseyans. We’ve seen the effects of austere budgeting and what it looks like when state agencies are not properly funded. We know that fewer resources in housing means fewer affordable homes.”

With a $1 billion novelty check in hand, the coalition called on the Legislature and Governor Murphy to extend the surcharge permanently, and invest those funds in services and programs that working families rely on.

“Since the corporate surcharge was enacted, corporations like Amazon continue to enjoy record-breaking profits every year,” said Liz Glynn, New Jersey Citizen Action Director of Organizing. “But New Jersey working families have struggled to meet essential needs, and these needs continue to grow. The revenue received from the surcharge has helped meet the growing infrastructure and service needs of low-and moderate-income families across our state. Now is not the time to sunset the surcharge. We urge Governor Murphy and our State Legislature to extend the surcharge and help ensure everyday New Jerseyans can prosper during these difficult times.”

Watch a recording of the event here.

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For The Many is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.