Today, New Jersey lawmakers introduced and advanced legislation (A4704/S3513) that creates a Corporate Transit Fee and dedicates the proceeds to NJ Transit. Sponsored by Senate President Nick Scutari and Assemblywoman Shama Haider, the legislation establishes the first-ever dedicated funding for NJ Transit in the 45-year history of the agency. The 2.5 percent fee on corporations with more than $10 million in profits would primarily be paid by large multinational corporations headquartered out of state. This follows months of education and advocacy from transit riders, unions, local elected officials, and advocates for a fair budget and reliable transit. In response to the bill advancing, New Jersey Policy Perspective (NJPP) issues the following statement.
Alex Ambrose, Policy Analyst, NJPP:
“This is a historic win for riders and the state of New Jersey as a whole. Until now, NJ Transit has never had a dedicated source of funding, and the new fee will help get the agency back on track after decades of disinvestment. For riders, more funding means more reliable service, and fewer delays and cancellations, and no major service cuts.
“No matter how you look at it, this is the textbook definition of good public policy. The state is making a major investment in a public service that millions of people use, with broad economic benefits, and it’s paid for by profitable corporations that can afford it. With riders about to pay higher fares, this fee makes sure that multinational companies like Amazon are also paying for the infrastructure they benefit from.”
“There are countless advocates, riders, local officials, labor leaders, and lawmakers past and present who made this possible. Thank you to Governor Murphy, legislative leadership, and bill sponsors for taking this historic step towards a more sustainable economic future.”
Read NJPP’s report on the need for dedicated funding for NJ Transit.
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