Gov. Murphy Proposes $58 Billion Budget

Governor’s Final Budget Includes $1.2 Billion Deficit

On Feb. 25, Governor Phil Murphy delivered his budget proposal for New Jersey’s 2026 fiscal year, which begins July 1. Budget spending is $1.4 billion (2.7%) more than the signed current fiscal year budget of $56.6 billion.

The proposed $58.05 billion budget includes the following: 

• $7.2 billion full pension payment
• $6.3 billion surplus
• Nearly $4.3 billion in direct property tax relief
• $1.3 billion for pre-K and $12.1 billion for K-12 schools
• $1.5 billion for NJ Transit, including $815 million from the corporate transit fee
• $1.2 billion in new fees and taxes, including tax increases for reality transfers, sports betting, alcohol, adult-use marijuana and cigarettes
• $100 million for expanding apprenticeship programs and workforce development
• Tax credit for manufacturing next-generation products in New Jersey
• A cap on new discretionary spending 

There is a $1.2 billion structural budget deficit.

The budget has to be approved by the Assembly and the Senate and signed into law by June 30.

Lawmakers, Business Leaders Weigh In

• NJ business groups dig into deficit, warehouse tax from $58B budget 
• GOP Sounds Alarm on Murphy’s Budget Proposal
• NJBIA Statement on Governor's FY26 State Budget Proposal
• NJ Chamber Statement on Proposed 2026 State of NJ Budget