TRENTON, N.J. — The New Jersey Department of Community Affairs announced it is now accepting applications for its School Regionalization Efficiency Program grants, which help school districts and eligible governing bodies study whether merging with neighboring communities could reduce costs and improve services.
The grant program, administered through the Division of Local Government Services, covers eligible costs associated with feasibility studies that examine potential school district mergers, including countywide and regional districts. Officials said the studies are designed to determine whether consolidation could lead to cost savings, operational efficiencies, and expanded academic opportunities for students while easing the burden on taxpayers.
“It wasn’t that long ago that school districts interested in exploring how to regionalize their resources and programs were blocked from doing so because of the costs involved,” said DCA Commissioner Jacquelyn A. Suárez. “The School Regionalization Efficiency Program grants remove this cost barrier so that school communities can research if regionalization is right for them. We invite local school officials to take advantage of this opportunity while it’s available.”
Department of Education Commissioner Kevin Dehmer said many districts are seeking ways to balance rising costs with student needs.
“Many school districts throughout New Jersey want to explore ways that regionalization would provide students with greater academic opportunities and to identify ways to reduce costs,” Dehmer said. “The School Regionalization Efficiency Program is a tool that can help communities explore these options. Through successful regionalization, communities can see real savings and efficiencies that benefit taxpayers, while schools can expand and elevate the educational programming offered to their students.”
Eligible applicants include boards of education of local, consolidated, and non-operating school districts, as well as limited-purpose and all-purpose regional districts. Municipal governing bodies associated with those districts may also apply in certain circumstances.
Funding is available to support feasibility studies for three types of projects: preliminary studies to expand existing regional districts or form countywide districts; newly proposed or ongoing regionalization studies; and previously conducted feasibility studies. Awards may cover up to 100 percent of study costs, depending on the quality of the application and anticipated outcomes.
Feasibility studies must demonstrate the potential for meaningful and practical regionalization plans that enhance learning environments, coordinate curriculum across schools and grade levels, improve efficiency and cost savings, and avoid increasing or exacerbating student segregation. Proposals must also reflect geographic proximity among districts and include documented commitments from participating boards of education and municipal governing bodies to consider implementing study recommendations.
State officials said factors such as enrollment trends, facility use, class size, staffing, diversity, debt obligations, and existing send-receive relationships will be evaluated as part of the studies.
While districts that complete feasibility studies may pursue shared services or consolidation, participation in the grant program does not obligate them to merge.
Applications are accepted on a rolling basis and must be submitted through the DCA SAGE Portal. Officials recommended submitting applications as soon as possible due to funding availability in the fiscal year 2026 state budget. Program guidelines and additional information are available on the DCA website.
