Skip to content

Legislative Updates

Gov. Murphy Signs FY2026 State Budget

Legislative Updates

On Monday, June 30, the New Jersey Senate and General Assembly approved the Fiscal Year 2026 state budget by votes of 26-13 and 52-27-1, respectively. Governor Phil Murphy signed the budget into law just before midnight, meeting the constitutional deadline and avoiding a state government shutdown.


At $58.8 billion, the FY2026 budget is the largest in New Jersey’s history. It includes a full $7.2 billion pension payment and maintains a $6.7 billion surplus.


The Legislature added $728 million in additional spending beyond Governor Phil Murphy’s original proposal, including restoring funding for student financial aid and reversing a proposed $20 million cut to community colleges. The budget also directs the State Health Benefits Program to identify $100 million in cost savings by the end of the calendar year.


To support increased spending, the budget included several tax increases:

  • Raising the tax rate on internet gaming and online sports wagering to 19.75 percent;
  • Increasing the realty transfer fee on home sales over $2 million;
  • Raising the cigarette tax by 30 cents and increasing the tax on liquid nicotine from 10 cents to 30 cents.


On Friday, June 27, Chamber of Commerce Southern New Jersey (CCSNJ) Director of Government Affairs Hilary Chebra testified before both the Senate and Assembly budget committees. In her testimony, Ms. Chebra called for a more equitable distribution of Corporate Transit Fee (CTF) revenues to support transportation projects in South Jersey. Although no specific allocation was included in the final budget, she urged the Legislature and NJ Transit to prioritize transit investments in the region moving forward.


Ms. Chebra also voiced concerns regarding the internet gaming tax increase, warning that even a modest hike could undermine Atlantic City’s competitiveness and discourage future investment during its ongoing recovery.


Following the bill's passage from committee, CCSNJ President and CEO Christina Renna released the following statement:


As the state finalizes its FY2026 budget, it remains critically important to ensure that South Jersey receives its fair share of transit funding. Businesses in our region contribute significantly to NJ Transit through the Corporate Transit Fee yet continue to lack equitable access to transit services. This imbalance must be addressed. The Chamber of Commerce Southern New Jersey (CCSNJ) will continue to work with the Legislature and NJ Transit to ensure South Jersey sees a meaningful return on this investment.

 

CCSNJ cautions that any increase to the internet gaming and online sports wagering tax risks undermining Atlantic City’s competitiveness and, by extension, the broader South Jersey economy. While we acknowledge that the final budget scales back the Governor’s originally proposed 25 percent increase, the gaming sector must remain attractive to both operators and investors. Even modest tax hikes in this area could deter future investment and jeopardize the ongoing recovery and long-term growth of Atlantic City and the region as a whole.

 

While we remain concerned about the overall spending in this budget, we commend the Legislature for taking a measured approach to taxation by rejecting several harmful proposals that would have made it more expensive to live and do business in New Jersey. Not moving forward with the $2-per-truck excise fee and so-called ‘fun’ taxes helps protect both small businesses and everyday residents from unnecessary financial burdens. In a state where affordability is a growing concern, these decisions matter.”


Click here to read CCSNJ’s full testimony on the FY2026 budget.


Please reach out to Hilary Chebra, Director, Government Affairs at hchebra@chambersnj.com if you have any questions.

Powered By GrowthZone

Your Feedback is Important to Us!

For any Government-related comments, questions or suggestions please contact:

Hilary Chebra

Manager, Government Affairs, CCSNJ

Scroll To Top