NJ Transit Board adopts $3.16B operating budget, $1.7B in capital funding for FY 2026

NEWARK, N.J. — The NJ TRANSIT Board of Directors on Thursday approved the agency’s Fiscal Year 2026 operating and capital budgets, advancing investment in infrastructure, workforce, and services that support public transportation across New Jersey.

The board adopted a $3.16 billion operating budget and $1.684 billion in capital funding for the upcoming fiscal year. Officials say the funding will ensure continued progress on system upgrades and help maintain service reliability and safety.

“Thanks to Governor Murphy’s support, NJ TRANSIT has the funding it needs to maintain its critical transportation services,” said DOT Commissioner and Board Chair Fran O’Connor. “These services drive the economy and promote sustainable transportation throughout the region.”

“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,” added NJ TRANSIT President & CEO Kris Kolluri.

FY 2026 Operating Budget

Roughly 31% of NJ TRANSIT’s operating revenue will come from farebox collections. Other sources include:

• $470 million from the New Jersey Turnpike Authority
• $789 million from the state’s corporate transit fee
• A mix of commercial, state, and federal funds

Approximately 60% of the operating budget is allocated to labor costs for NJ TRANSIT’s workforce of about 12,000 employees. Other major expenses include fuel, materials, utilities, contracted services such as Access Link, and operations for private carrier buses, the Hudson-Bergen Light Rail, and the River LINE.

FY 2026 Capital Funding

The $1.684 billion capital funding appropriation includes:

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

The capital budget will support ongoing infrastructure projects, fleet upgrades, station improvements, and safety initiatives.

Local Programs Budget

NJ TRANSIT will continue partnering with New Jersey’s 21 counties, municipalities, nonprofits, and public agencies to support community and rural transit services. Highlights of the local programs budget include:

• $46.1 million from the Casino Revenue Fund for senior and disabled transportation
• $13.9 million in federal funding through FTA Section 5310 to enhance mobility for seniors and people with disabilities
• $7.8 million for rural transit services under FTA Section 5311
• $5.5 million for the NJ Jobs Access and Reverse Commute (NJ-JARC) Program

• Additional funding for intercity bus services, technical assistance, and pass-through funds to sub-recipients

Officials say the combined budgets align with NJ TRANSIT’s mission to deliver safe, reliable, and accessible transportation while preparing for future demand.