TRENTON, N.J. — Governor Phil Murphy on Monday signed the $58.78 billion Fiscal Year 2026 Appropriations Act into law, marking the culmination of his administration’s nearly eight-year focus on fiscal responsibility, affordability, and long-term investment in New Jersey residents.
The budget, passed by the Legislature earlier in the day, allocates more than 75 percent of total funds back into communities through property tax relief, school aid, health services, and support for municipalities and counties. It includes historic levels of direct property tax relief for homeowners and renters, a fifth consecutive full pension payment, and record-high school funding.
“This budget exemplifies our dedication to fiscal responsibility, affordability, and opportunity for all New Jerseyans,” Murphy said. “Over nearly eight years in office, we have maintained a steadfast commitment to building a stronger and fairer New Jersey.”
The budget includes $4.3 billion in direct property tax relief, including funding for the ANCHOR and Senior Freeze programs. It also allocates $600 million for the new Stay NJ program, expected to launch in the 2025 tax season, which will reimburse eligible senior homeowners for up to 50 percent of their property taxes.
Other highlights include:
- $12.1 billion in K-12 education funding — the highest in state history.
- $1.27 billion for preschool education.
- $1.23 billion for transportation and infrastructure upgrades.
- $767 million for NJ TRANSIT modernization.
- $7.2 billion for the state pension system, bringing Murphy’s total contributions to more than $47 billion.
- $932.9 million for higher education institutions.
The budget maintains a $6.7 billion surplus, more than 16 times the amount inherited by the Murphy administration, and includes new revenue measures such as increased taxes on real estate transfers, sports betting, cigarettes, and vaping products, alongside small business investment incentives.
“This is a fiscally responsible budget that puts New Jersey families first,” said Senate President Nick Scutari, Senate Majority Leader Teresa Ruiz, and Senate Budget Committee Chair Paul Sarlo in a joint statement.
Murphy’s administration says the FY2026 budget is the result of disciplined governance and sets the stage for continued growth, equity, and affordability across the state.
