New Jersey
Murphy budget plan seeks revived, narrowed business tax to fund NJ Transit – New Jersey Monitor
Gov. Phil Murphy proposed $55.9 billion in spending for the coming fiscal year during his annual budget address, asking lawmakers to approve a structural deficit and a shrinking surplus while reviving and altering a business tax that sunset mere months ago as the state’s revenue enters a post-pandemic sag.
Murphy will ask lawmakers to approve a 2.5% non-marginal tax on all income earned by businesses making more than $10 million in annual net income. The so-called “corporate transit fee” would replace the recently expired corporate business tax surcharge, which added a 2.5% surtax on business profits above $1 million.
“We will raise this revenue without placing any new burdens on small- and medium-sized businesses. In fact, nearly 2,500 companies will see their taxes decrease from last year. And let me take this opportunity to thank, in advance, the big companies which will be stepping up. Many of them have partnered with our administration since day one,” Murphy said.
Progressive groups have for months urged the surcharge’s resuscitation, but business leaders moved to oppose the tax hike before it was even announced, with Tom Bracken, CEO of the state Chamber of Commerce, calling it “a major step backwards.”
The new tax is expected to generate $818 million in revenue annually, though it’s expected to raise just over $1 billion this year because it will be applied retroactively to the first two quarters of 2024.
Only 600 businesses are expected to pay the new tax, compared to the roughly 3,100 that paid the old surcharge. But those who do will pay more because, unlike the old surcharge, the new tax will be levied on a larger tax base that includes the first $1 million of business profits.
Revenue from the new transit fee would be dedicated by statute to NJ Transit. The money would help the agency meet the roughly $900 million fiscal cliff it faces in the fiscal year that begins in July 2026, but the statutory dedication means the money can be diverted at the whim of a future governor and Legislature.
“As our friends in the press are fond of reminding me, I have said many times that I would fix NJ Transit even if it killed me. Well, I’ve still got a pulse,” Murphy said.
Despite the additional collections, Murphy’s proposed budget would shrink New Jersey’s surplus to just under $6.1 billion, bringing it under a statutory threshold needed to keep the StayNJ property tax relief program up and running. Democrats proposed StayNJ last year as an effort to reduce senior citizens’ tax bills by half.
Provisions in StayNJ’s enabling legislation require, among other things, the state to keep a surplus equal to at least 12% of its spending to pay out StayNJ awards. Lawmakers can waive those statutory restrictions through budget language or legislation.
But the state’s surplus is likely to be smaller in reality. The administration is pushing for lawmakers to dedicate revenue from the new tax to NJ Transit. Because corporate tax collections lag by months, fee revenue from the fiscal year that begins July 1 is likely to be used to bridge the fiscal cliff NJ Transit faces starting in July 2026. That could bring the state’s surplus down to just under $5.1 billion, though it’s not clear the agency would need all the funds.
Murphy’s proposed budget would see the state spend $1.8 billion more than it takes in through taxes and fees. It would be the second straight year New Jersey has run a structural deficit, draining the surplus to meet spending priorities.
The governor’s proposal maintains a full $7.1 billion pension payment and makes the largest year-over-year increase to state school aid in more than a decade.
Murphy proposed increasing formula aid to schools by just over $900 million, bringing the state’s school funding formula to full funding levels for the first time in its history. He asked legislators to add another $124 million to fund preschool expansion, including a tranche of $20 million set aside to create 1,000 new preschool seats.
“I promised — from day one — that instead of short-changing our public schools or skimping on our pension payments we would invest in the long-term success of our state. We promised to build a stronger economy to support our vision for a fairer New Jersey,” Murphy said. “Our strategy is working.”
Despite the worsening fiscal condition, New Jersey will maintain its largest tax relief programs in the coming fiscal year.
That includes nearly $2.3 billion for the Anchor program and a planned $200 million deposit into a lockbox fund for StayNJ.
“At a time when families are grappling with higher prices at the checkout counter, we are putting more money back into their pockets than ever before. Since it was introduced, the ANCHOR Program has effectively lowered property taxes down to levels that, in many cases, our families have not seen in a decade,” Murphy said.
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New Jersey and New York City commuters are facing extensive delays in and out of New York Penn Station Friday, with intensifying ripple effects, after an Amtrak work train car on one of the hub’s tracks caught fire.
The FDNY says it was called to the Midtown scene on 31st Street, between Seventh and Eighth avenues, around 1:30 a.m. Nearly 100 personnel responded. Five civilians were evaluated at the scene by EMS, officials say.
It’s not clear what sparked the fire involving Amtrak’s contractor maintenance vehicles in one of the Hudson River Tunnels. It was knocked down well before 6 a.m., but service on New Jersey Transit, Amtrak, Long Island Rail Road and more was expected to see heavy impacts well into the morning rush, with Hudson River trains operating at reduced capacity. Amtrak said it didn’t expect to lift its suspension until at least noon.
Travel Advisory: Due to unforeseen track and signal maintenance resulting from a now extinguished fire in the New York area, all services traveling south of New York (NYP) are temporarily suspended. This suspension is anticipated to be in place until noon at a minimum. Services…
— Amtrak Northeast (@AmtrakNECAlerts) May 29, 2026
New Jersey Transit and LIRR also announced delays and cancellations. Cross-honoring and diversion programs were in effect as the situation developed. Complete LIRR service at NY Penn had resumed by around 7 a.m., Friday said, though equipment issues were causing cancellations. Get the latest transit information here.
Video from outside Penn Station showed smoke billowing in the pre-dawn hours, as emergency personnel stood by with stretchers awaiting any potential victims.
Amtrak is investigating the cause of the fire.
“We sincerely apologize for the inconvenience this may cause,” the agency’s latest announcement said, pledging to provide updates as new information becomes available.
How are detainees at Delaney Hall being treated?
A statement issued by DHS said detainees receive comprehensive medical care and all are treated well.
“They are provided with 3 meals a day, clean water, clothing, bedding, showers, soap, and toiletries. Illegal aliens also have access to phones to communicate with their family members and lawyers. Certified dieticians evaluate meals,” the department wrote.
The release accused Sherrill, Booker and U.S. Sen Andy Kim, as well as U.S. Reps. Rob Menendez, Nellie Pou, LaMonica McIver, Frank Pallone and Analilia Majia, of continuing “to peddle falsehoods about ICE facilities,” and “spreading smears about ICE law enforcement and the Delaney Hall ICE facility in New Jersey.”
Sinha said the assertion that individuals being arrested and taken to Delaney Hall are dangerous criminals is false.
“This is an administration that has repeatedly lied to us about what’s going on in immigration enforcement and immigration detention facilities,” Sinha said.
He added while Sherrill does not have the legal authority to enter Delaney Hall unannounced, that fact that she was denied entry is concerning.
“The federal government has denied her repeatedly, and it makes you question, ‘What is the federal government trying to hide?’” he asked. “They have no allegiance to any rule of law or semblance of democracy; they’re trying to rewrite the Constitution for people who are noncitizens.”
On Thursday, Sherrill issued a statement saying the New Jersey Department of Health attempted to conduct a inspection of Delaney Hall, but officials were only allowed to inspect only a limited part of the facility.
“We will review and share the department’s findings from the limited portion it was allowed to inspect, and we will continue to pursue all appropriate avenues for demanding transparency and ensuring humane conditions for the individuals being held at the facility,” she said in the statement. “As I’ve said repeatedly, refusing to provide full access raises serious questions about what ICE is trying to hide from public view.”
Sinha said a hunger strike among those inside the facility is continuing because they are being given spoiled food and inadequate medical care in deplorable conditions.
“People shouldn’t have to starve themselves to make their dignity known; people shouldn’t have to starve themselves to have their rights protected, but that’s what’s happening here,” he said.
Reports of escalating violence
Late Thursday afternoon there were reports of violence escalating within Delaney Hall.
Nedia Morsy, the director of Make the Road New Jersey, an immigration advocacy group, issued a statement saying multiple sources within the facility reported ICE agents attacking detainees and causing serious injuries.
“Right now there are ICE agents inside of Delaney Hall violently beating the hunger strikers,” Morsy said in the statement. “Someone will be killed if no one intervenes and shuts this down. These masked agents are acting as if they’re above the law. This is a modern-day concentration camp, and history will not forgive silence in this moment. We need to shut down Delaney Hall and free everyone inside.”
Resistencia en Accion, another immigrant rights group, also released a statement, calling for violence against detainees to end.
“We express our utmost disgust with the violence perpetrated by Immigration and Customs Enforcement (ICE) agents today, May 28. Reports at approximately 1:40 p.m. reveal that ICE agents attacked the hunger strikers inside with batons and tear gas. Family members outside received calls from inside, confirming that there were people screaming, and according to their loved ones inside, unconscious detainees and blood on surfaces. ICE is the sole responsible actor for the escalation that has led to several wounded people inside and outside this week,” the statement reads.
WHYY News reached out to DHS late Thursday seeking comment about the reports of violence at Delaney Hall. A written statement was emailed to WHYY that said ICE agents had responded to a physical altercation involving detainees.
“In accordance with established ICE policies and their training, staff used the minimum amount of force to safely deescalate the situation,” DHS wrote. “Following the incident, all affected detainees were promptly evaluated by on-site medical personnel and were cleared with no serious injuries.”
New Jersey
Proposed tax credit could help pet owners with everyday expenses, vet bills in New Jersey
Thursday, May 28, 2026 11:54AM
The costs of having a four-legged friend can add up. But New Jersey pet owners could see some relief.
State lawmakers are considering a bill to allow tax credits to dog and cat owners.
The proposed bill would give pet owners a $300 tax credit for everyday pet expenses and up to $600 for veterinary bills.
The bill is moving through the New Jersey legislation and has been referred to the Commerce and Economic Development Committee.
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