Sherrill’s First Budget is a Start. Now Comes the Hard Part.

Earlier today, Governor Mikie Sherrill delivered her first budget address, unveiling a $60.7 billion proposal for Fiscal Year 2027. The budget includes approximately $700 million in new revenues from closing corporate tax loopholes and nearly $2 billion in spending cuts to address a growing structural deficit. Key proposals include reforms to the Stay NJ property tax relief program, expanded child care assistance, and measures to protect New Jersey’s health care and family tax credit programs amid anticipated federal funding cuts.

In response, New Jersey Policy Perspective (NJPP) issues the following statement:

Nicole Rodriguez, President, NJPP:

“Governor Sherrill’s first budget reflects a serious attempt to grapple with a difficult fiscal moment, and in several areas, it reflects the right priorities. Reforming Stay NJ to limit benefits for homeowners earning more than $250,000 is a smart, targeted fix that directs relief to those who actually need it. Expanding utility help, child care assistance, and preserving the Child and Earned Income Tax Credits send the right signal about whose side this budget is on. Closing corporate tax loopholes — reining in deductions that have benefited large companies at the expense of small businesses and working families — is exactly the kind of structural reform New Jersey needs more of.

“At the same time, this budget plan only gets us part of the way there. The Governor is right that much of New Jersey’s fiscal pressure stems from federal dysfunction and the Trump administration’s devastating cuts to programs that families depend on. But the answer to that pressure cannot only be spending cuts, particularly when immigrant families are under attack, one in nine New Jersey children still lives in poverty, and communities across the state are counting on the programs this proposal funds. And as the budget process moves forward, there are real questions about where nearly $2 billion in cuts will land, and who will bear the burden. To truly protect New Jerseyans from the turbulence ahead, the state must go further in asking wealthy individuals and powerful corporations to contribute their fair share. NJPP is encouraged by this start and committed to working with the Governor and the legislature to build on this.”

Read NJPP’s latest budget analysis: What to Look for in the New Jersey Budget for Fiscal Year 2027

Gov. Sherrill Is Right About the Budget Problem. Cuts Alone Won’t Solve It.

New Jersey Gov. Mikie Sherrill held a press conference today previewing her March 10 budget address, announcing a budget tracking tool and a “report card” for state spending. She acknowledged a $3 billion structural deficit and a surplus projected to be depleted by FY 2028, while signaling her administration will prioritize spending cuts over new revenues.

Statement from New Jersey Policy Perspective Staff:

Governor Sherrill’s press conference today made plain the dire fiscal condition that New Jersey finds itself in. As NJPP’s decades of analysis have shown, including our 2016 Notorious Nine report and our recent Budget Time Bombs publication, the Governor is correct that shortsighted decisions to close one-year budget holes have left New Jersey with a serious structural deficit. NJPP looks forward to seeing the Governor’s plans for how to close these gaps, while balancing the need for affordability for New Jersey’s working families.

Governor Sherrill’s call for budget transparency echoes NJPP’s longstanding concerns about budget accessibility, including a need for more user-friendly budget data and clear tracking of program spending over multiple years. 

But transparency doesn’t close a $3 billion gap. Fixing a deficit this size through cuts alone would seriously harm low-income resident and working families who depend on Medicaid, school funding, and property tax relief. As Senior Policy Analyst Peter Chen wrote last year, the state’s best defense against fiscal crisis is shoring up revenues, not draining the savings account.

NJPP urges the Governor to use all the tools available to close this deficit, including increasing the state’s revenues. The federal One Big Beautiful Bill Act handed a multitrillion dollar tax cut to the richest individuals and corporations while increasing costs for states like New Jersey. Ensuring that wealthy individuals and big corporations are paying their fair share can put the state on sound long-term fiscal footing.

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New Jersey Has the Power to Protect Immigrant Communities

In response to the killing of a Minnesota resident by ICE agents and escalating federal attacks on immigrant communities, New Jersey Policy Perspective issues the following statement:

Nicole Rodriguez, President, NJPP:

“ICE agents killed Alex Pretti in Minnesota. He was 37, an American citizen, a nurse, someone who should have been safe. He’s not the first person killed by ICE, and communities of color have been bearing the brunt of this violence for years. No one is safe when federal agents operate without accountability. Immigrant families across New Jersey are watching, terrified they’re next. This is what state violence looks like, and it’s exactly why New Jersey must act now to protect our neighbors.

“When the federal government threatens communities instead of supporting them, states have power. New Jersey can limit local law enforcement cooperation with ICE, fund legal defense services for immigrants facing deportation, and ensure that everyone — regardless of immigration status — can access health care, education, and public safety without fear. These aren’t abstract ideas. They’re concrete policies that keep families together and make it harder for federal agents to tear communities apart.

“This is what our work is for. We fight for policies that protect immigrant communities and fix our broken criminal justice system because everyone deserves safety, dignity, and the chance to build a life here. Right now, that means using every tool we have at the state level to stand between our neighbors and a federal government that sees them as targets. New Jersey can do this. We should.”

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NJPP Statement on Governor Murphy’s Action on Immigrant Protection Bills

On his final day in office, Governor Phil Murphy signed the Safe Communities Act (A6308) into law but pocket vetoed two companion bills: the Privacy Protection Act (A6309) and a bill to codify the Immigrant Trust Directive (A6310).

In response, NJPP releases the following statement:

Nicole Rodriguez, President, NJPP:

“New Jersey Policy Perspective welcomes Governor Murphy’s signing of A6308, the Safe Communities Act, which ensures schools, hospitals, courthouses, and places of worship remain safe and accessible to all residents regardless of immigration status. After five years of community-led advocacy, this protection is a meaningful step forward.

“However, the Governor’s decision to pocket veto A6309 and A6310 leaves critical gaps in protections for New Jersey’s immigrant communities.

“On A6309 (Privacy Protection Act): The Governor cites a “drafting oversight” that could jeopardize federal funding. While we take these concerns seriously, New Jerseyans needed comprehensive privacy protections yesterday, not weeks from now. We urge the administration to publicly specify the provision at issue so the Legislature can address it and reintroduce this legislation immediately.

“On A6310 (Immigrant Trust Directive): The Governor argues that codifying protections beyond the 2018 directive could invite legal challenges.

“This reasoning prioritizes legal caution over legislative action at a moment when immigrant communities face unprecedented federal threats. The Legislature passed stronger protections because the current directive may not be sufficient under a second Trump administration. Fear of litigation should not prevent New Jersey from enacting the strongest possible safeguards.”

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NJPP Statement on Final Day of Legislative Action

On January 12, the New Jersey Legislature voted on more than 100 bills to close out the 2024-25 legislative session. Several bills will help protect New Jersey residents, while others weaken fiscal accountability and create challenges for the next legislature and administration.

In response to these bills, NJPP issues the following statements:

On paid family leave job protection expansion (A3451/S2950):

“No New Jersey worker should ever have to choose between bonding with their new child and keeping their job,” said NJPP Senior Policy Analyst Peter Chen. “This bill protects hundreds of thousands of workers from being fired or demoted for taking family leave. The next legislature should finish the job by closing remaining loopholes and extending these protections to everyone.”

On higher rates on heavy users of electricity (A5462/S4307):

“As New Jerseyans are already dealing with sky-high utility bills, this bill makes sure energy-intensive businesses, like data centers, pay for the costs they’re passing on to families. ” said Alex Ambrose, Policy Analyst at New Jersey Policy Perspective. “With PJM adding more data centers to the grid, New Jersey needs to protect residents from footing the bill. Governor Murphy must sign this to hold heavy electricity users accountable and keep costs down for families.”

On bills loosening and expanding corporate subsidy programs (A6298/S5025 and A6306/S5031):

“The state is staring down a deficit of more than $1 billion and working-class families are struggling to afford basics,” said Peter Chen, New Jersey Policy Perspective Senior Policy Analyst. “Now is not the time for more giveaways to politically connected corporations. A $300 million tax credit to the Prudential Center and loosened accountability rules chip away at the reformed 2020 corporate subsidy law. Governor Murphy should reject these bills and protect his legacy of reining in billionaire giveaways.”

Rising Uninsured Rates Demand Urgent State Action on Health Coverage

The number of New Jerseyans without health coverage has drastically increased as pandemic-era protections have wound down and new barriers to coverage have been constructed. Data released today from the 2024 American Community Survey reveals access to health insurance has gotten harder for the people who need it the most. In response, NJPP releases the following statement:

Brittany Holom-Trundy, Research Director, NJPP:

“Health insurance coverage gaps widened significantly in 2024, with uninsured rates rising from 7.2% to 7.7% according to today’s 2024 American Community Survey health insurance data. This confirms our concerns: As the pandemic’s lessons about access to affordable coverage have been left behind, barriers to health insurance have grown worse, especially for those with the lowest incomes.

“Most alarming, the end of Medicaid protections especially harmed families living in poverty, leaving them without coverage or access to care. Low-income households saw their uninsured rates jump from 13.8% to 17.7%.

“While New Jersey has taken important steps to improve access, such as the Cover All Kids program, these efforts have not addressed all gaps in the system. Combined with the coming federal Medicaid cuts, this data shows that the state urgently needs to expand coverage programs and ensure that all residents (regardless of age, race, gender, immigration status, disability, or employment status) have access to affordable coverage.”

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Federal Court Puts Profit Over People

In a deeply concerning decision, the court today sided with private prison company CoreCivic in the CoreCivic v. Murphy case, striking down New Jersey’s ban on for-profit immigration detention. The ruling permits private detention facilities to continue operating in the state, despite overwhelming public opposition and legislative action aimed at ending the practice. New Jersey’s 2021 law banning new, renewed, or expanded contracts with private immigration detention facilities was a milestone in the fight for a more humane and accountable system. CoreCivic’s legal challenge centered on claims that the law interfered with federal immigration enforcement, despite mounting evidence of abuse, neglect, and exploitation in privately run detention centers. In response, NJPP releases the following statement:

Marleina Ubel, Senior Policy Analyst, NJPP:

“This ruling sets a dangerous precedent — one that allows corporations like CoreCivic to prioritize profits over people while operating little transparency or accountability. By effectively ruling that corporate interests supersede state authority to protect public health and safety, the court has undermined New Jersey’s efforts to protect people from the documented harms of for-profit detention.

“Despite today’s ruling, the pursuit of human rights and justice must continue. New Jersey still has the opportunity — and the responsibility — to lead the nation in protecting people from the systemic harms of private detention through enhanced oversight, transparency requirements, and continued advocacy for federal reform.

“NJPP calls on state leaders and federal policymakers to strengthen oversight of detention facilities, close legal loopholes that allow corporate exploitation, and continue working toward the permanent end of for-profit detention. We will not stop fighting for a system that upholds human dignity over corporate profit.”

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NJPP Supports Bipartisan Governor Group Calling On PJM to Reform

This week, a bipartisan group of nine Governors within the PJM region sent a letter to the PJM Board of Managers urging the Board to make certain reforms. The letter requests approving new Board members put forward by the states, meeting with the governors during the July 23 member meeting, and creating a formal group of PJM governors. The letter ended with a commitment from the governors to work with PJM to deliver affordable and reliable power. The letter comes just after the July 2025 PJM capacity auction closed and before the auction results are announced.

In response to this letter, New Jersey Policy Perspective issues the following statement:

Alex Ambrose, policy analyst, NJPP:

“PJM has had years to create a more transparent voting process, improve its governance, and lower customer bills. Instead, New Jersey families are stuck paying even more for electricity. Governor Murphy and his allies aren’t only asking for a seat at the table — they are asking for a working relationship. The message they are sending is loud and clear: this is PJM’s chance to change from being a barrier to affordable, reliable energy to becoming a partner instead.”

Read more about New Jersey’s rising energy rates.

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“Beautiful” Bill Devastates NJ Families While Delivering Massive Tax Breaks to the Wealthy

Today, the U.S. House of Representatives passed the final version of President Trump’s “One Big Beautiful Bill” following U.S. Senate approval on June 30. The legislation extends the 2017 tax cuts while adding new ones. It also cuts nearly $1 trillion from Medicaid, with more reductions to food assistance for the poor and other government aid.

In response to the bill, NJPP released the following statement.

“This harmful and irresponsible bill threatens New Jersey families by cutting funding for essential programs like health care, food assistance, and housing — programs that hundreds of thousands of residents rely on to stay healthy, fed, and housed.

“The health care cuts alone with devastate New Jersey families. Hundreds of thousands of New Jerseyans will either lose their health insurance or face much higher coverage costs. Around 227,000 New Jerseyans will be kicked off Medicaid as they face overwhelming red tape in getting and keeping their coverage. Another 454,000 residents will pay higher premiums through GetCovered NJ. These cuts will hurt working families, older adults, and people with disabilities the most.

“Food programs will also take a major hit. Over 800,000 residents receive food assistance through SNAP, and about 712,000 children rely on the national school lunch program. Reducing this support will increase food insecurity, worsen health outcomes, and put more pressure on schools, food banks, and community organizations.

“Housing costs are already crushing Garden State families. With 51 percent of New Jersey renters spending over 30 percent of their income on rent — already a heavy burden — cutting federal housing assistance will push more people into a housing crisis, especially in a high-cost state like ours.

“This is not just about doing what’s right — it’s about real consequences. Every dollar cut by Congress creates a deeper hole in New Jersey’s already woefully weak safety net and a bigger bill for the state to cover. The timing couldn’t be worse: New Jersey lawmakers just finalized the Fiscal Year 2026 budget and did not plan for these huge federal cuts.

“Meanwhile, the bill delivers massive tax breaks to the wealthy. The top 5 percent of earners in New Jersey — those making more than $471,200 a year — will receive 33 percent of all tax cuts, totaling more than $5.1 billion. But the bottom 20 percent of earners will receive just 1 percent, or about $167 million. This is a deeply unfair approach that benefits the rich while shifting risks and costs onto everyone else.

“New Jersey can’t afford to follow Washington’s lead. Lawmakers must protect vital services — and raise revenue fairly to protect the people hit hardest.”

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Coalition Slams Trump’s “Beautiful” Attack on Working Families

“There’s nothing beautiful about ripping health care away from millions while handing billionaires a massive tax break.

“Trump’s so-called One Big Beautiful Bill is a direct attack on working families, seniors, immigrants, and communities of color. It’s nothing but a massive giveaway to the ultra-rich, and New Jersey deserves better.

“This bill kills. It bankrupts. It robs our future to enrich the few.

“While billionaires get nearly $300,000 in tax cuts, working families get $160. While the wealthy celebrate, 16 million Americans lose health coverage. While the President’s friends cash in, children lose school meals and families lose their doctors.

“This isn’t reform — it’s robbery.

“Three New Jersey Representatives abandoned the Jersey values that say we look out for each other. Instead Reps Tom Kean Jr, Chris Smith, and Jeff Van Drew catered to wealthy donors and directives from the White House over the needs of their constituents.”

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For The Many NJ is a statewide coalition of more than 40 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.