Governor Murphy and Princeton University President Eisgruber Announce Microsoft and CoreWeave as Founding Partners in NJ AI Hub

Governor Phil Murphy and Princeton University President Christopher L. Eisgruber announced that Microsoft and CoreWeave will join the State and Princeton as founding partners in the NJ AI Hub. The NJ AI Hub will serve as a state-of-the-art, collaborative ecosystem that integrates world-class research, innovation, education, and workforce development. As part of this investment in the NJ AI Hub, Microsoft will leverage its TechSpark program to provide expertise and resources for AI skilling and workforce development to create opportunities for innovation in New Jersey and the region.

The NJ AI Hub will help position New Jersey as a leading East Coast center for AI innovation. It will be located along Route 1 — New Jersey’s innovation corridor — at 619 Alexander Road in West Windsor, in space provided by Princeton University. 

“As the AI industry rapidly evolves, it’s imperative that we capitalize on this moment in New Jersey. I’m incredibly proud of this partnership with the top leaders in the industry and higher education, which further establishes our state as a hub for cutting-edge AI innovation and talent,” said Governor Murphy. “AI’s economic and innovation potential is vast, giving us the chance to take our state to new heights. This partnership will not only solidify New Jersey’s position as a global technology leader, it will also attract high-paying, sustainable jobs for our residents, allowing for a stronger and more prosperous future for our state.” 

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Governor Murphy Announces Third Round of Medical Debt Elimination, Totaling Over $26 Million in Debt Abolished for 20,000 New Jerseyans

As part of the Murphy Administration’s ongoing partnership with Undue Medical Debt, Governor Phil Murphy announced that over 20,000 New Jersey residents are set to benefit from a third round of medical debt abolishment, totaling over $26 million. By leveraging approximately $270,000 in American Rescue Plan funds from the State’s investment in medical debt abolishment, Undue has purchased this debt from the secondary market. Letters to those impacted are currently in the mail and expected to arrive within the next week.

As a result of this partnership, $246 million in medical debt has been eliminated for 147,000 New Jersey residents so far.

“Medical debt accumulates fast and can be just as debilitating as any diagnosis or injury. It is unacceptable that the threat of taking on debt could be what discourages people from seeking necessary, life-saving care. That is why in New Jersey, we are working to make health care more affordable and accessible, so our residents can put their health and well-being first,” said Governor Murphy. “Our partnership with Undue Medical Debt, which has already seen over $246 million in debt owed by New Jerseyans retired, complements our Administration’s cross-agency efforts to put health care in reach for all New Jersey families. Today’s announcement underscores this continued commitment to create a better, more affordable, and accessible health care system in our state.”

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New Jersey Launches Innovative IRS Direct File Program

Governor Phil Murphy announced that New Jerseyans can now start using IRS Direct File for the 2025 tax filing season. The online tax filing tool, which is available to New Jerseyans for the first time, offers live chat support and provides taxpayers with a free, easy, and secure way to file their federal and state individual tax returns – it is estimated that more than one million New Jerseyans will be eligible to use Direct File.

New Jerseyans may qualify to use IRS Direct File this tax season if they have lived in New Jersey for all of 2024, earned all of their 2024 income in New Jersey, and plan to use the same filing status for both their federal and state income tax returns. Residents can find out if they are eligible at DirectFile.IRS.gov.

“IRS Direct File will ease the strenuous tax filing process and give New Jerseyans an opportunity to save hundreds of dollars this tax season,” said Governor Murphy. “This is a free, convenient online tool for residents to file directly with the government in a secure way they can trust. I commend the Department of Treasury and the Office of Innovation for their partnership in developing this program.”

“Direct File is a huge improvement in the way that residents file their taxes, saving them time and tax filing fees,” said New Jersey Treasurer Elizabeth Maher Muoio. “This resource will make a difference in the lives of New Jerseyans, empowering them to file their taxes themselves, and leading to money saved.”

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Governor Murphy Announces Filing of New Claims in Congestion Pricing Lawsuit

Governor Phil Murphy announced that the State of New Jersey is taking action to update its pending lawsuit over congestion pricing with new claims. The new claims focus on actions taken by the Federal Highway Administration (“FHWA”) last year to approve last-minute changes that New York officials made to their congestion pricing plans and to allow congestion pricing to begin without appropriate environmental reviews.

The State’s original complaint in the lawsuit, filed in July 2023, alleges that the federal government violated the National Environmental Policy Act (“NEPA”), the Administrative Procedure Act, and the Clean Air Act when it approved plans for congestion pricing without adequate environmental review. Notably, at the time the FHWA completed its original faulty review, no tolling scheme had been set by the Metropolitan Transportation Authority (“MTA”) for its congestion pricing program.

In March 2024, the MTA adopted a tolling scheme that fundamentally differed from the tolling schemes previously assessed by the FHWA. In a quick re-evaluation, the FHWA rubber-stamped the March 2024 tolls, without conducting an adequate re-evaluation. The MTA then paused its plans for congestion pricing in June, before reversing course in November when it announced a never-before-considered phased-in tolling scheme, and the FHWA again greenlit the program without meaningful further analysis. New Jersey’s supplemental complaint asserts that these bare-bones re-evaluations also violate federal law.

In December 2024, a federal court agreed with New Jersey that the FHWA violated federal law when it initially approved the MTA’s plans in 2023. New Jersey’s new claims regarding more recent developments were not previously considered by the court.

“The decision by the federal government and the MTA to fast-track a proposal that solely benefits New York’s transportation system at the expense of hardworking New Jerseyans must be reevaluated and rescinded,” said Governor Phil Murphy. “Not only is this scheme a financial strain on hardworking New Jerseyans, but it will also have adverse environmental consequences on many North Jersey communities, as the federal government has admitted. The FHWA cannot continue to turn a blind eye to the significant environmental impacts that congestion pricing will have on New Jersey, favoring New York at the expense of its neighbors.”

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Murphy Administration Takes Action to Lower Skyrocketing Utility Bills

Governor Phil Murphy applauded the agreement reached between Pennsylvania and PJM Interconnection that will avoid $21 billion in price hikes on consumers across all 14 jurisdictions PJM serves, including New Jersey.

For months, PJM, the entity responsible for keeping New Jersey’s lights on, has been experiencing historic increases in electricity prices and has been slow to bring new generation onto the grid. Last July, in PJM’s most recent capacity auction, electricity clearing prices surged to almost 10 times higher than the previous year due to flaws with market rules, with increases ranging from $12-15 per month.

In October, Governor Murphy and other governors from Pennsylvania, Illinois, Maryland, and Delaware called for urgent action in PJM to curb record-high electricity prices. As a result of?a complaint from Governor Josh Shapiro filed with the Federal Energy Regulatory Commission (FERC) against PJM and letters from PJM founding member governors, criticizing flaws in PJM’s auction that threatened to impose significant new price increases, PJM agreed to a price cap to save consumers $21 billion over two years region-wide.

“I am pleased that PJM did the right thing by finding a path forward that will save consumers billions of dollars on their energy bills,” said Governor Murphy. “New Jersey will continue to advocate for affordability on behalf of consumers and work with our partner states to hold PJM accountable for unconscionable and unnecessary price hikes that hurt families and businesses. This is the beginning of a long road to common sense reforms.”

New Jersey’s affordability and energy policies directly support generating more power in-state and creating new capacity to meet resource adequacy needs, lowering the price all ratepayers pay for electricity. Last week, Governor Murphy implored PJM to take immediate action to respond to the escalating cost crisis.

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