Governor Murphy Presents Fiscal Year 2026 Budget - “Stronger, Fairer, and More Prepared for the Future”

Governor Phil Murphy delivered his ninth and final budget address on Tuesday, February 25, outlining spending priorities for Fiscal Year 2026 (FY2026) to deliver economic security and opportunity to every New Jerseyan and ensure the state continues to be well prepared for the future. The budget proposal builds upon the Administration’s historic investments in expanding affordability, supporting the next generation, maintaining fiscal responsibility, and building a stronger and fairer future for all New Jerseyans.

The Governor’s proposed budget expands direct property tax relief for New Jersey homeowners and renters, including funding the new Stay NJ program, and continues support for the popular ANCHOR and Senior Freeze programs. The proposal also provides record school funding, delivers a fifth consecutive full pension payment, and supports significant investments in New Jersey’s economy and communities.

“Our budget proposal for the next fiscal year reflects our ongoing—and unrelenting—commitment to building a New Jersey that is stronger, fairer, and more prepared for the future,” Governor Murphy said. “Over the past seven plus years, we have made historic progress in advancing this mission, but we’re not done yet. And over the next year, our absolute top priority—as it has been since day one—is delivering economic security and opportunity to every New Jerseyan.”

“This budget builds upon this Administration’s commitments to making New Jersey more affordable, prioritizing good fiscal stewardship, strengthening our economy, and building healthy communities,” said State Treasurer Elizabeth Maher Muoio. “We look forward to working with our partners in the Legislature to deliver a final budget that benefits New Jerseyans across our state.”

The $58.05 billion budget includes a proposed surplus of $6.3 billion, while redirecting over 74 percent of the total budget back into our communities in the form of grants-in-aid for property tax relief, social services, and higher education, as well as State aid to schools, municipalities, and counties.

For more information on the Governor’s proposed FY2026 budget, please see the Budget-in Brief.

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In Commemoration of Black History Month, Governor Murphy and Lieutenant Governor Way Announce Release of the Wealth Disparity Task Force Report

In honor of Black History Month, Governor Phil Murphy and Lieutenant Governor Tahesha Way announced the release of the Wealth Disparity Task Force’s report examining the causes of – and remedies for – longstanding wealth disparities that affect Black and Latino New Jerseyans. The report, “New Jersey – Building A State Of Opportunity: A Report of the Wealth Disparity Task Force to Close Opportunity Gaps and Repair Structural Disparities,” identifies the historical drivers of wealth disparities, outlines current steps being taken by the Administration to address those disparities, and recommends additional actions to build a more inclusive and equitable state. The report was heavily informed by former Lieutenant Governor Sheila Y. Oliver, who served as Co-Chair of the Wealth Disparity Task Force.

“The findings in this report underscore the persistent wealth disparities that Black and Latino communities have endured for generations,” said Governor Murphy. “Ending these longstanding disparities is essential to cementing New Jersey’s reputation as the state of opportunity. While I am proud that our Administration has already acted upon a number of the recommendations in this report, we clearly have much more work to do. Over the next year, we’re committed to redoubling our efforts to build a more just, equitable, and inclusive future for all New Jerseyans.”

“I would be remiss if I did not acknowledge my late partner in government, Lieutenant Governor Sheila Oliver, who was a lifelong champion of our state’s underserved communities. Sheila was the driving force behind this Task Force and her invaluable contributions as Co-Chair will leaves a lasting and meaningful impact on our state for years to come,” continued Governor Murphy. “This report is a testament to the progress we must continue making in Sheila’s honor, as well as our commitment to fostering the potential of every New Jerseyan, in every community. I’d also like to thank the Task Force Co-Chairs and members, as well as Jayné Johnson from my staff, for their tireless efforts to bring this important report to fruition.”

“Through the lens of history, each of us can better identify past discrimination and understand the origins of the structural barriers that persist today,” said Lieutenant Governor Way. “At this critical time in our nation’s history, I am grateful to see our Administration work to address these injustices, advance opportunities for all communities, and make meaningful and lasting progress toward a more equitable future for all.”

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Murphy Administration Highlights Historic Support for Schools in Fiscal Year 2026 Budget Plan

Governor Phil Murphy’s proposed Fiscal Year 2026 budget provides a historic amount of $21.3 billion – plus an additional $882.4 million from the Lottery Enterprise Contribution Act, bringing the total investment to $22.2 billion – in funding for pre-K to 12 education, a $444 million increase from FY2025 and over one-third of the entire State budget. This amount includes preschool aid, direct payments for pension and health benefits payments for school staff, and a $386 million increase in direct K-12 formula aid for a total of $12.1 billion in K-12 aid – an increase of 48 percent since the Administration took office. The proposed budget will continue to advance the State toward the goal of universal preschool, give greater stability in local school funding, and increase funding for critical academic programs aimed at accelerating learning.

“Our annual budget is a reflection of our values and, here in New Jersey, we value a quality education for every student,” said Governor Phil Murphy. “The funding we provide to support school communities translates to stronger, safer, and more dynamic learning environments. We remain committed to working in close collaboration with local school districts to provide our students with the opportunities they need to succeed and to help build a stronger, fairer New Jersey.”

“This historic investment in Preschool to Grade 12 education demonstrates an unwavering commitment to the students and staff in New Jersey’s public schools,” said Kevin Dehmer, Commissioner of Education. “By instituting a cap on decreases in State aid and providing fiscal stability for school districts, school leaders will be able to better plan their budgets and ensure a consistent education for all students.”

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Governor Murphy Unveils Proposal to Align Preschool and Child Care Facilities Standards, Bolstering State’s Mixed Delivery Model

Governor Phil Murphy announced a cross-agency effort spanning the New Jersey Department of Education (DOE), the New Jersey Department of Children and Families (DCF), and the New Jersey Department of Human Services (DHS) to align preschool and child care square footage requirements to a single standard. This move aims to bolster the State’s mixed delivery model by addressing one of the most frequently cited barriers faced by local education and child care officials as communities across New Jersey look to establish or expand state-funded preschool and child care programs. Mixed delivery refers to serving three-to-four-year-old children in classroom settings that meet all State regulations, and are operated by a combination of school districts, Head Start programs, and private providers.

DOE and DCF have begun the process of amending their respective rules to hold state-funded and licensed child care centers and preschool programs to the same minimum space requirement of 42 square feet of usable space per child. The Administration intends to formally publish the rulemaking proposal for public comment in spring 2025.

The proposed rule change is backed by national research on best practices in classroom space per preschool child. The National Resource Center for Health and Safety in Child Care and Early Education and the American Academy of Pediatrics recommend preschool classroom square footage should range between 42 to 54 square feet per preschool child.

“Our mixed delivery model has played a key role in our rapid expansion of preschool seats. By working together, school districts, Head Start administrators, and licensed private providers are able to better meet the diverse needs of our communities. We know that access to local, high-quality preschool and child care options is crucial for New Jersey families. Not only do these services ease financial burdens on working parents, they also help our young children start to develop social skills and an educational foundation that will aid them throughout their academic careers,” said Governor Murphy. “Aligning standards makes preschool expansion accessible across the early childcare industry, helps futureproof the state’s early childhood ecosystem, and represents another step we’re taking to keep New Jersey as the best place to raise a family.”

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NJEDA and Coriell Institute for Medical Research Announce New Innovation Center in Camden

The New Jersey Economic Development Authority (NJEDA) and the Coriell Institute for Medical Research announced the creation of a new Strategic Innovation Center (SIC) in Camden, leveraging the world-class assets available at Coriell to support biomedical research and innovation. The new innovation center will be fully equipped with state-of-the-art incubator and laboratory spaces for emerging biotech companies, will drive economic growth in the region and establish Camden as a leader in life sciences innovation. The project is expected to create approximately 150 new permeant jobs, plus 100 construction jobs.

“Since taking office, my Administration has been laser-focused on advancing New Jersey’s innovation economy through targeted investments in our most crucial industries and sectors,” said Governor Phil Murphy. “The NJ Biomedical Strategic Innovation Center is set to redefine biomedical research and development by uniting private companies, premier academic institutions, and leading entrepreneurs to pave the way for groundbreaking biomedical technologies, further cementing New Jersey’s legacy of leadership in innovation and life sciences.”

“Under Governor Murphy’s leadership, New Jersey has made historic investments in its innovation ecosystem, empowering entrepreneurs with the resources they need to thrive, further solidifying the state’s position as a global leader in innovation,” said NJEDA Chief Executive Officer Tim Sullivan. “Through the NJEDA’s Strategic Innovation Center initiative, Camden will serve as a pivotal hub for cutting edge biomedical research, advancing lifesaving technologies in cancer treatment, stem cell applications, epigenetics, and drug development. By partnering with leading corporations and academic institutions, the NJ Biomedical Strategic Innovation Center will leverage the state’s brightest minds to create companies of the future, generating high-quality jobs, and growing New Jersey’s economy.”  

The NJ Biomedical SIC will encompass approximately 45,000 square feet at the Lewis L. Coriell Medical Research Center in Camden, which will be in close proximity to the headquarters of Campbell’s and Subaru, building upon the city’s economic strength and commitment to attracting world-class enterprises. The Coriell Institute will leverage its international reputation in biobanking and cutting-edge biomedical research to support innovative startup companies at the SIC.

The Coriell Institute for Medical Research is a leader in biomedical innovation and is home to some of the most famous biobank collections, including the National Institutes of Health’s premier collections representing thousands of human diseases. Coriell scientists work to accelerate scientific discovery by generating world-class biomaterials and conducting groundbreaking research in biobanking and epigenetics.

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