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New Jersey Passes $60.7 Billion Budget Expanding Tax Credits and Housing Assistance
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New Jersey Governor Mikie Sherrill signed a record $60.74 billion budget on June 30, 2026, calling it an "affordability budget that takes on the rising costs of housing, health care, and property taxes." The plan cuts the state's structural deficit in half — from $3 billion to $1.35 billion — without raising taxes on individual residents, according to Lakewood Alerts.
The budget delivers $4.1 billion in combined property tax relief, expands the child tax credit by 25%, and pumps $80 million into affordable housing construction. But Republican critics say the 400-page bill was rushed through in a late-night vote with no time to read it, and business groups warn the state's 11.5% corporate tax rate is the highest in the nation.
Property Tax Relief and Child Credits Hit Record Levels
New Jersey already has some of the highest property taxes in the U.S. This budget fights back with $4.1 billion in combined relief through three programs: ANCHOR, Senior Freeze, and StayNJ. Seniors will see StayNJ benefits rise to between $4,000 and $6,500, depending on income, according to Insider NJ.
About 217,000 tax filers will benefit from the child tax credit expansion, which grows 25% over the next three years. Senate President Nicholas Scutari said lawmakers "made affordability our top priority by delivering record property tax relief and expanding the Child Tax Credit," Insider NJ reported.
Housing Funds and Veteran Aid Target Two Urgent Gaps
New Jersey is short roughly 200,000 affordable housing units, according to Morris Habitat for Humanity. The budget sends $80 million to the Affordable Housing Trust Fund to kickstart new construction, plus a $5 million boost for first-time homebuyer down payment assistance.
Veterans get $11 million through the new "Bringing Veterans Home" initiative, which aims to move every known homeless veteran in the state into permanent housing. The budget also sets aside $20 million for a summer tuition aid grant program for qualified undergraduates, and $12.4 billion — a record — for K-12 school aid, Lakewood Alerts reported.
Republicans Call the Budget a Rushed, Opaque Spending Spree
The Assembly passed the budget 58-20 in a party-line vote on June 30. But the vote came just two days after budget committees advanced the bill in an unusual late-night session on June 28. Senator Declan O'Scanlon said, "No one who votes for it tonight is going to have read it, or really knows what's in it," according to Insider NJ.
Fiscal watchdog the New Jersey Policy Institute flagged $358.8 million in "supplemental appropriations" added at the last minute. The list included $40 million for FIFA World Cup support and $5 million for a recreation center in a single town. Assemblyman Brian Rumpf called it "the same old tax and spend mentality — it's like Governor Murphy never left."
Corporate Tax Rate Fuels Fears of a Business Exodus
The budget keeps the Corporate Transit Fee — a 2.5% surtax on businesses earning over $10 million in profit. That pushes New Jersey's combined corporate tax rate to 11.5%, which business groups say is the highest in the nation. The fee generates $765.6 million for NJ Transit out of nearly $1.1 billion in total operating support, WHYY reported.
Advocates at New Jersey Policy Perspective praised the fee as a "choice of people over corporate profits." But large employer groups warn the rate could trigger a corporate exodus from the state. State Treasurer Aaron Binder defended the overall plan, saying it shows "a steadfast commitment to fiscal discipline" with a full $7.3 billion pension payment and a projected surplus of $6.08 billion, according to Lakewood Alerts.
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