View All Posts

May 25

Department of Transportation Budget Allocations FY2024

Posted on May 25, 2023 at 2:22 PM by Legislative Staff

Department of Transportation Budget Allocations FY2024 

The New Jersey Department of Transportation’s (NJDOT) proposed fiscal year 2024 budget allocations, excluding the Motor Vehicle Commission, amount to $1.919 billion. This represents a $11.8 million or 0.6% increase compared to the FY2023 adjusted appropriation of $1.907 billion. The FY2024 increase is primarily due to the allocations for the Simple Fix Safety Program, a new program to increase pedestrian and bicycle safety, and the Diamond Head Oil Refinery Site Remediation in Kearny, which includes land owned by NJ for the construction of I-280. 

The Governor's Budget recommends a capital appropriation of $1.574 billion for debt service to be provided to the Transportation Trust Fund Authority. 

The FY2024 operating subsidy for New Jersey Transit totals $140 million, which is $40 million higher than the FY2023 adjusted appropriation. 

NJ Transit Local Aid 

NJDOT’s Municipal Aid Program successfully distributed $161.3 million in grants to 553 applicants in FY2023, marking the first time that every municipality that applied received funding. An additional $24 million was allocated for Bikeways, Safe Streets to Transit, and Transit Village Grants for FY24. In the previous fiscal year, 45 municipalities and two counties were awarded a total of 56 grants through these programs. 

The Division of Local Aid and Economic Development has processed 5,340 grant applications, amounting to over $2.9 billion since 2018. 

NJ Transit Budget and ARP Funding  

In the proposed FY24 budget, NJ Transit allocations include a General Fund operating subsidy of $140 million, a $40.0 million increase compared to FY2023. The total operating subsidy from State sources for NJ Transit would amount to $650.1 million in FY2024, a decrease of $253 million from FY2023. This reduction is primarily due to a decrease in support from the New Jersey Turnpike Authority, from $721 million in FY2023 to $440 million in FY2024. 

NJ Transit’s proposed operating budget for FY2024 forecasts total expenditures of $2.87 billion, reflecting a $111 million increase (4%) compared to FY2023. The rise is primarily attributed to higher salary and fringe benefit costs. In addition to State operating subsidies, the budget relies on several funding sources, including:  

  1. Anticipated farebox revenue of $776.3 million, which is projected to increase by $60.2 million from estimated collections in FY2023. 
  2. Federal COVID-19 relief funding amounting to $808.8 million, representing an increase of $329.6 million from FY2023. 
  3. Federal capital preventive maintenance funds totaling $334.0 million, which is $28 million decrease from FY2023.  

To sustain its operations, NJ Transit will continue utilizing federal COVID-19 relief funds for operating expenses through FY2025. This includes $808.8 million in FY2024 and a final installment of $749.3 million in FY2025. However, once the federal aid is fully expended, NJ Transit projects a deficit of $119.4 million in FY2025 and a substantial shortfall of $917.8 million in FY2026, assuming no fare increases are implemented. 

About the NJDOT 

The mission of the Department of Transportation (NJDOT) is to create a transportation system that enhances the well-being of residents and travelers in the State of New Jersey. The NJDOT serves a diverse range of constituents, including local governments. 

Contact: Andrew LaFevre, Legislative Analyst,, 609-695-3481, x116.