NJ TRANSIT ADOPTS FISCAL YEAR 2027 OPERATING AND LOCAL PROGRAMS BUDGET, SECURES AUTHORIZATION FOR CAPITAL FUNDING

Budget Continues To Advance Critical Infrastructure Projects and Customer Experience Improvements

July 16, 2026

NEWARK, NJ — The NJ TRANSIT Board of Directors today adopted the agency’s Fiscal Year 2027 (FY 2027) operating budget, local programs budget and authorized capital funding. The budgets continue investments in infrastructure and equipment to maintain the system in a state of good repair and enhance the overall customer experience.

“Governor Sherrill and NJ TRANSIT are committed to providing critical transportation services that allow people to get to work, school, grocery stores and medical appointments,” NJDOT Commissioner and NJ TRANSIT Board Chair Priya Jain said, “Thanks to Governor Sherrill’s support, NJ TRANSIT has the funding it needs to provide public transportation options for the millions of customers that rely on it every year.”

“We accomplished a lot in Fiscal Year 2026 by continuing historic investments in new rail cars and buses to modernize the aging fleet,” said NJ TRANSIT President & CEO Kris Kolluri. “Governor Sherrill’s unprecedented level of state funding support for FY27 will allow us to build on this progress by continuing to invest in our transit system to ensure more reliable, efficient and modern transportation for our customers.”

The Board adopted a $3.5 billion operating budget and $1.7 billion in capital funding for FY 2027.

FY 2027 Operating Budget

Twenty-eight percent of the revenue in the FY 2027 operating budget comes from customer fares. The remaining amount comes from dedicated funding from the New Jersey Turnpike Authority, which is $485 million in FY 2027, $765.6 million from the corporate transit fee and a combination of commercial revenue and state and federal resources.

Approximately 60 percent of the operating budget is dedicated to costs associated with labor that supports a workforce of approximately 12,900 employees. Expenses including materials, fuel and power, utilities, and outside services represent 22.8 percent of the total operating expenses. Contracted transportation services, such as Access Link, private carrier buses and Hudson-Bergen Light Rail (HBLR) operation and maintenance represent 9.5 percent of total operating expenses.

FY 2027 Capital Funding Appropriation

This year’s Fiscal Year 2027 Capital Funding Appropriation totals $1.733 billion and represents an expected funding source that will provide, along with other past and future annual appropriations, the funds needed to advance critical capital projects.

The Capital Funding Appropriation is funded from a number of sources: $791.1 million from the Federal Transit Administration (FTA), $75 million in flexed funds from the Federal Highway Administration (FHWA) provided through the New Jersey Department of Transportation (DOT), $782 million from the New Jersey Transportation Trust Fund (TTF), and $84.5 million of Casino Revenue, Local Match, and Turnpike Authority funds.

FY 2027 Local Programs

NJ TRANSIT partners with all 21 New Jersey counties to fund community transportation programs, as well as those offered by a variety of private non-profit organizations, counties, municipalities and county improvement authorities, in meeting the mobility needs of New Jerseyans who depend on public transportation.

These programs include the following:

$56.9 million from the New Jersey Casino Revenue Fund to operate the statewide Senior Citizen and Disabled Resident Transportation Assistance Program (SCDRTAP).
$13.9 million for Federal Transit Administration (FTA) Section 5310 “Enhanced Mobility of Seniors and Individuals with Disabilities” programs, which provide federal funds for operating expenses as well as the purchase of vehicles and related equipment by private, non-profit agencies, and designated public entities. This includes $2.8 million in state funding to support local matching fund requirements.
$8.9 million for FTA Section 5311 “Formula Grants for Rural Areas” programs, which provide federal funds for capital, administrative, and operating assistance for public transportation services in and between small urban and rural areas of New Jersey. This includes $2.9 million in state funding to support local matching fund requirements.
$179,408 in federal funding for the FTA Section 5311(b)(3) Rural Transit Assistance Program, which provides training and technical assistance for small transit operators receiving funding through NJ TRANSIT’s Local Programs.
$1.04 million for FTA Section 5311 Rural Intercity Bus Transportation Program.
$5.5 million for the New Jersey Jobs Access and Reverse Commute (NJ-JARC) Program under which counties and localities provide public transportation services to help residents obtain community transportation to employment opportunities.
$20 million in other funds passed through to sub-recipients.

About NJ TRANSIT

NJ TRANSIT is the nation's largest statewide public transportation system providing more than 925,000 weekday trips on 264 bus routes, three light rail lines, 12 commuter rail lines and through Access Link paratransit service. It is the third largest transit system in the country with 166 rail stations, 62 light rail stations and more than 19,000 bus stops linking major points in New Jersey, New York and Philadelphia.