During his seventh annual budget address on Feb. 27, New Jersey Gov. Phil Murphy outlined proposed spending priorities for the $55.9 billion Fiscal Year 2025 (FY 2025) budget. The FY 2025 budget proposes a Corporate Transit Fee to create another dedicated funding stream for New Jersey Transit (NJ Transit) that will provide fiscal support.
The funding will ensure service is maintained as ridership continues to recover from the pandemic while building upon major operational improvements. The fee would affect New Jersey’s wealthiest corporations with net taxable income greater than $10 million. The governor says small and medium-sized businesses would not be impacted.
The governor’s office explains about 600 business would be impacted by the proposed Corporate Transit Fee, which is expected to raise $1 billion in FY25 and between $800 and $900 million annually. In a letter accompanying the FY25 Budget Brief, the governor wrote the new fee ask companies “to contribute a small share of their profits to support the transit system that delivers their workers and customers to where they need to be, when they need to be there.”
In addition to the proposed Corporate Transit Fee, the governor’s budget includes a 15 percent fare increase for NJ Transit, $145 million General Fund payment to the transit system and $767 million for NJ Transit capital projects.
“Simply put: This budget will ensure that New Jersey retains its proud reputation as the best place, anywhere, to raise a family. With this budget, we are maintaining fiscal responsibility while also remaining true to our values, including proposing a new, dedicated funding stream to support NJ Transit. Together, we are building a New Jersey that is stronger and fairer than ever before.”
