The New Jersey Legislature unveiled a $358.8 million supplemental spending bill Sunday that would steer millions of dollars to financially struggling municipalities, hospitals, schools and local capital projects, while setting aside $40 million for the 2026 FIFA World Cup and $15 million for horse racing purses. The legislation appropriates $358.811 million to supplement the fiscal year 2026 budget enacted last summer.
The supplemental appropriations bill is expected to be considered as part of the Legislature’s final budget package before the close of the fiscal year.
The largest single appropriation is $174.1 million for municipal aid through the Department of Community Affairs, including $135 million for Transitional Aid to Localities. Under the bill, $110.4 million of that funding would be provided as loans to distressed municipalities, with the remainder available through a needs-based application process administered by the Division of Local Government Services.
The bill also provides millions of dollars in direct aid for municipal capital projects and operating expenses, including $4 million for Plainfield, $3 million for Woodbridge municipal court renovations, $2.5 million for Perth Amboy operating aid, $2.25 million for Essex County park improvements, and more than $2 million each for Rahway and Linden.
University Hospital would receive a $50 million supplemental appropriation, while Rowan University’s Cooper Medical School and Cooper University Hospital would receive nearly $14.9 million in additional support.
The Department of Corrections would receive $18.8 million to cover salaries and wages after anticipated savings from prison consolidation failed to materialize.
The Department of Health would receive $22.6 million, including $10 million for the City of Newark Access to Health Care Partnership, $5 million for Cooper University Health Care’s South Jersey Cancer Program, $4 million for Capital Health Regional Medical Center, and additional funding for Saint Peter’s University Hospital, Inspira Health System, and Allaire Health Services.
The bill also appropriates $15 million for horse racing purse subsidies.
Education spending includes $9.15 million for school operating aid and capital improvements, as well as a $500,000 appropriation to establish an educator employment web portal. The measure also increases funding for Charter School Facility Improvements from $4 million to $7.5 million.
Another $40 million would be appropriated to the New Jersey Sports and Exposition Authority to reimburse state agencies and local governments for expenses associated with hosting matches and related activities during the 2026 FIFA World Cup.
Other appropriations include $650,000 for the State Commission of Investigation, $1.84 million for domestic violence services, $700,000 for Middlesex County’s firefighting foam replacement initiative, $2 million for Essex County mosquito control operations, and $299,000 for agricultural supply chain infrastructure.
The legislation also makes several policy changes. It expands eligibility under the state’s AI Supercomputer Initiative by allowing one or more nonprofit organizations, rather than only institutions of higher education, to host the supercomputer and broadens eligible grant expenses to include operating, maintenance, staffing, and energy costs.
In addition, the bill appropriates another $4 million from the Clean Energy Fund for the state’s Vehicle-to-Grid pilot program supporting electric school buses.
The measure also gives the State Treasurer greater flexibility to reallocate funds within the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund and authorizes supplemental General Fund appropriations if cannabis tax revenues fall short of projections.
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