NJ Transit Board adopts FY26 operating budget, local programs budget and authorized capital funding

The New Jersey Transit (NJ Transit) Board of Directors adopted the agency’s fiscal year (FY) 2026 operating budget, local programs budget and authorized 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. 

“Thanks to Gov. [Phil] Murphy’s support, NJ Transit has the funding it needs to maintain its critical transportation services,” said New Jersey Department of Transportation (NJDOT) Commissioner and NJ Transit Board Chair Fran O’Connor. “These services drive the economy and promote sustainable transportation throughout the region.” 

NJ Transit President and CEO Kris Kolluri added, “Together, the operating and capital budgets allow us to deliver safe, reliable service today while investing in the infrastructure that will shape a better customer experience tomorrow. Every element of this funding supports our mission to make public transit more reliable, accessible and responsive to the needs of our riders.” 

The board adopted a $3.16 billion operating budget and $1.7 billion in capital funding for FY26.

FY26 operating budget 

NJ Transit notes that 31 percent of the revenue in the FY26 operating budget comes from customer fares. The remaining amount comes from dedicated funding from the New Jersey Turnpike Authority, which is $470 million in FY26, $789 million from the corporate transit fee and a combination of commercial revenue and state and federal resources. 

The agency says that approximately 60 percent of the operating budget is dedicated to costs associated with labor that supports a workforce of approximately 12,000 employees. Expenses including materials, fuel and power, utilities and outside services represent 22 percent of the total operating expenses. Contracted transportation services, such as Access Link, private carrier buses and Hudson-Bergen Light Rail and River LINE operation and maintenance represent 10.6 percent of total operating expenses. 

FY26 capital funding appropriation  

The FY26 capital funding appropriation totals $1.7 billion and 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:  

• $768 million from the Federal Transit Administration (FTA)  
• $75 million in flexed funds from the Federal Highway Administration provided through the NJDOT  
• $767 million from the New Jersey Transportation Trust Fund  
• $74 million of casino revenue, local match and Turnpike Authority funds 

FY26 local programs 

NJ Transit notes it partners with all 21 New Jersey counties to fund community transportation programs, as well as those offered by a variety of private nonprofit organizations, counties, municipalities and county improvement authorities to help meet the mobility needs of New Jerseyans who depend on public transportation.  

The programs include the following:   

• $46.1 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, nonprofit agencies and designated public entities, including $2.8 million in state funding to support local matching fund requirements. 
• $7.8 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, including $2 million in state funding to support local matching fund requirements. 
• $175,240 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 NJ Transit’s local programs. 
• $1.02 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. 
• $6 million in other funds passed through to sub-recipients.