The New Jersey Transit (NJ Transit) Board of Directors have adopted the agency’s fiscal year (FY) 2027 $3.5 billion operating budget and $1.7 billion in capital funding. The budgets continue investments in infrastructure and equipment to maintain the system in a state of good repair and enhance the overall customer experience. 

“Gov. [Mikie] Sherrill and NJ Transit are committed to providing critical transportation services that allow people to get to work, school, grocery stores and medical appointments,” said New Jersey Department of Transportation Commissioner and NJ Transit Board Chair Priya Jain. “Thanks to Gov. Sherrill’s support, NJ Transit has the funding it needs to provide public transportation options for the millions of customers that rely on it every year."

FY27 operating budget 

According to NJ Transit, 28% of the revenue in the FY27 operating budget comes from customer fares. The remaining amount comes from dedicated funding from the New Jersey Turnpike Authority, which is $485 million in FY27, $765.6 million from the corporate transit fee and a combination of commercial revenue and state and federal resources. 

Approximately 60% of the operating budget is dedicated to costs associated with labor that supports a workforce of approximately 12,900 employees. Expenses including materials, fuel and power, utilities and outside services represent 22.8% of the total operating expenses. Contracted transportation services, such as Access Link, private carrier buses and Hudson-Bergen Light Rail operation and maintenance represent 9.5% of total operating expenses. 

FY27 capital funding appropriation  

NJ Transit says the FY27 capital funding appropriation represents an expected funding source that will provide, along with other past and future annual appropriations, the funds needed to advance critical capital projects. The capital funding appropriation is funded from a number of sources, including $791.1 million from the Federal Transit Administration (FTA), $75 million in flexed funds from the Federal Highway Administration provided through the New Jersey Department of Transportation, $782 million from the New Jersey Transportation Trust Fund and $84.5 million in casino revenue, local match and Turnpike Authority funds. 

FY27 local programs 

The agency partners with all 21 New Jersey counties to fund community transportation programs, as well as those offered by a variety of private non-profit organizations, counties, municipalities and county improvement authorities, in meeting the mobility needs of New Jerseyans who depend on public transportation. 

These programs include the following:  

• $56.9 million from the New Jersey Casino Revenue Fund to operate the statewide Senior Citizen and Disabled Resident Transportation Assistance Program.  

• $13.9 million for FTA Section 5310 Enhanced Mobility of Seniors and Individuals with Disabilities programs, which provide federal funds for operating expenses, as well as the purchase of vehicles and related equipment by private, non-profit agencies, and designated public entities. This includes $2.8 million in state funding to support local matching fund requirements. 

• $8.9 million for FTA Section 5311 Formula Grants for Rural Areas programs, which provide federal funds for capital, administrative and operating assistance for public transportation services in and between small urban and rural areas of New Jersey. This includes $2.9 million in state funding to support local matching fund requirements. 

• $179,408 in federal funding for the FTA Section 5311(b)(3) Rural Transit Assistance Program, which provides training and technical assistance for small transit operators receiving funding through the agency's local programs.  

• $1.04 million for FTA Section 5311 Rural Intercity Bus Transportation Program.  

• $5.5 million for the New Jersey Jobs Access and Reverse Commute Program under which counties and localities provide public transportation services to help residents obtain community transportation to employment opportunities. 

• $20 million in other funds passed through to sub-recipients. 

“We accomplished a lot in fiscal year 2026 by continuing historic investments in new rail cars and buses to modernize the aging fleet,” said NJ Transit President and CEO Kris Kolluri. “Gov. Sherrill’s unprecedented level of state funding support for FY27 will allow us to build on this progress by continuing to invest in our transit system to ensure more reliable, efficient and modern transportation for our customers.”