Fran O’Connor, acting commissioner of the New Jersey Department of Transportation (NJDOT); Kevin S. Corbett, president and CEO of NJ Transit (NJT); and Motor Vehicle Commission (MVC) Chief Administrator Latrecia Littles-Floyd recently presented their respective proposed budgets before the legislature.
New Jersey Department of Transportation
Local Aid: The Transportation Trust Fund (TTF) is vital to maintaining and improving our state’s transportation infrastructure, funding projects that improve safety and quality of life, allowing the NJDOT to continue offering grants through Local Aid programs and infrastructure projects, and reducing the tax burden on residents. Under renewal of the TTF, Municipal and County Aid programs will receive $184 million in additional funding in the final three years.
One notable initiative is the Local Bridges Fund, which saw its funding increase from $25 million to $44 million annually under the 2016 TTF renewal. This fund focuses on improving county-owned bridges and is expected to continue. The 2016 TTF renewal also created the Transportation Infrastructure Bank, or the I-Bank, to provide low-interest loans for higher-cost municipal and county transportation projects that exceed what NJDOT can provide with Local Aid grants. By May 2018, the I-Bank had provided $92 million in closed loans to 26 projects and allocated $72 million to 14 projects in design for a below-market legislated financing initiative totaling $164 million. The Local Aid Resource Center provides support and technical assistance to counties and municipalities to help facilitate local projects.
Capital Program: In FY 2023, the department awarded 117 construction contracts valued at $932 million and selected 161 consultants for design and inspection work for a total of $352 million. By the close of this fiscal year, the department is confident it will have awarded the projected 117 contracts at a value of $1.1 billion.
Gateway Program: New Jersey’s contribution has been reduced from $2.5 billion to $308 million over the 15-year program, just one tenth the original amount. The federal government is covering 73% of the project’s $16 billion cost. As the most urgent infrastructure program in America, it covers the 10 most important miles of mass transit in the country. Work has begun on the Hudson Tunnel Project, which will add rail capacity to the Northeast Corridor. NJ Transit’s Portal North Bridge Replacement Project is under construction as well. Given the region’s role as the center of global commerce, the Gateway Program is vital.
Investments Paying Off: Many years ago, NJDOT set a goal to keep 80% of roads in good or fair condition. NJDOT has exceeded this goal at 81%, and it has a new goal for 2032 for 90% to be in good or fair condition. Approximately 94% of bridges in New Jersey are in acceptable condition, or in good or fair shape, and there are plans to create a risk-assessment tool to prioritize bridge work.
Climate Change and Resiliency: NJDOT introduced the Climate Hazard Visualization Tool to identify risks like potential flooding and sea level rise. Mitigation strategies have been included in project designs and partnerships with the Governor’s Interagency Council on Climate Change Resilience, which have meant finding environmentally beneficial approaches to maintain New Jersey’s transportation system.
Electric Vehicles: NJDOT, NJ Transit, South Jersey Transportation Authority, and the New Jersey Turnpike Authority are on track to convert approximately 40% of our combined light-duty fleet to electric by 2025. NJDOT has installed four solar chargers that are completely off the grid, generating their own electricity. The National Electric Vehicle Infrastructure Program, known as NEVI, provides New Jersey with $104 million over five years to install fast electric vehicle chargers no more than 50 miles from and within one mile of an exit.
World Cup: NJDOT has been actively planning safe and efficient transportation for the FIFA 2026 World Cup, as eight matches, including the final match, will take place at the MetLife Stadium.
New Jersey Transit
NJT Yesterday Versus Today: NJ Transit has faced numerous challenges, including a severe shortage of locomotive engineers, a Positive Train Control (PTC) project woefully behind schedule, an aging bus fleet, and 40-to-50-year-old rail cars and locomotives— but no strategic plan or five-year capital plan.
Now, NJ Transit has a full roster of locomotive engineers, hundreds of new buses and rail cars delivered or on the way, and the second-largest capital program in the U.S.—behind only New York’s Metropolitan Transportation Authority. After a herculean effort to meet the PTC certification deadline, NJT is now leading the industry to fully operationalize this system and to make our rail network even safer, while collaborating closely with the Federal Railroad Administration, Amtrak, and the Northeast Corridor Commission.
Capital Program: President Corbett stressed that there are more than 20 rail stations in active stages of development, ranging from planning to active construction. NJ Transit is also actively investing more than $1 billion in the largest and most critical transportation hubs across the state, including Newark Penn Station and the Walter Rand Transportation Center in Camden. NJ Transit had just $60 million in hard-money construction contracts out on the street. Since 2018, NJ Transit has advanced nearly $6 billion worth of projects, including both infrastructure projects and train and bus vehicle purchases. NJ Transit is planning to advance nearly $8 billion in capital expenditures over the next three years.
Infrastructure-Specific Projects: The Gateway Program comprises two major projects: the Portal North Bridge Replacement Project and the Hudson Tunnel Project Portal, the single largest construction award in NJ Transit’s history, is now 50% complete, with the first track scheduled to open in 2026. Construction of the Hudson River Tunnel began at Tonnelle Avenue in November.
NJ Transit is also advancing various regional projects, including transit-oriented developments and resiliency improvements. These projects include the Raritan River Bridge resiliency project, transit-oriented developments in serval cities, efforts to extend the Hudson-Bergen Light rail, and investments in Americans with Disability Act accessibility and maintenance facilities.
The proposed budget prioritizes upgrades to key rail stations and maintenance facilities, with significant commitments to stations including Hoboken Terminal, Newark Penn Station, and others, totaling $814 million across seven stations and a maintenance facility. This includes funding for projects including the Walter Rand Transportation Center upgrade in Camden and the construction of a new maintenance facility in Clifton.
Fare Hikes and Corporate Transit Fee: Corbett defended double-digit fare hikes—some as high as 15% (and the annual 3% increases) to allow the agency to overcome a $106.6 million budget gap it faces next fiscal year. Governor Murphy has proposed that the state fill the funding gap by enacting the corporate transit fee— a new surcharge on the corporate business tax that would impose a 2.5% surcharge on businesses with more than $10 million in profit. The tax is estimated to generate more than $800 million in annual revenue, to be dedicated to NJ Transit.
Electrifying Corporate Fleets: NJ Transit received a $1.4 million grant from the New Jersey Board of Public Utilities to expand its fleet of corporate electric vehicles and provide funding for the necessary charging infrastructure. The agency noted that they have already met and exceeded their goal to convert 25% of its corporate vehicle fleet to hybrid/all electric by 2025.
Motor Vehicle Commission
MVC Chief Administrator Littles-Floyd highlighted the commission’s accomplishments, including increased successful transactions, digital service enhancements, and expansion of the Mobile Unit fleet.
In an effort to continue modernizing services, the MVC launched electronic lien and titling to streamline lien reporting. Last year, the MVC accommodated 5.3 million appointments, with online transactions reaching 7.3 million.
The MVC also partnered with Fairleigh Dickinson University to offer tuition reimbursement for employees pursuing degrees.
Through the proposed FY 2025 budget, the MVC is seeking a $50 million general fund operating subsidy, focusing on cost-saving measures while maintaining essential services. The NJDOT, NJ Transit, and MVC’s recommendations stress a commitment to safety, efficiency, and reliability.
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