Agreement reached in New Jersey state budget ahead of July 1 deadline, Democrats announce

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Democratic leaders in the New Jersey state legislature say they have agreed on a new $60.7 billion state spending plan for fiscal year 2027, setting up for full approval in the coming days.

Governor Mikie Sherrill, Assembly Speaker Craig Coughlin, D-Middlesex, and state Senate President Nick Scutari, D-Union, said in a joint statement Tuesday that the agreement will make the Garden State more affordable and protect the state from the Trump administration’s “dangerous policies that harm residents.”

“The $60.7 billion budget provides tax relief to New Jerseyans who need it most while investing in our shared future with an expanded Child Tax Credit benefit for families. It offers the most property tax relief in the state’s history, ensuring StayNJ is a sustainable benefit retirees can count on,” the statement said.

“At the same time, this budget cuts the state’s structural deficit in half, continues to fully fund pensions, and increases the budget surplus we need to fight the Trump Administration’s unprecedented attacks on Medicaid, food assistance, affordable health care, and jobs – all of which are increasing costs for New Jerseyans.”

The agreement adds $100 million more for the Stay NJ property tax relief program for older homeowners than the governor originally proposed and directs a greater share of benefits to lower-income residents.

Lawmakers have been working behind the scenes for weeks to reach a budget deal ahead of the July 1 deadline. If a spending plan is not in place by 11:59 p.m. June 30 in New Jersey, the state government will shut down.

Republicans on the state Senate’s budget committee criticized the deal, calling it politically driven and saying that it provides uneven funding for municipalities and school districts.

In a letter to Democratic leaders, Declan O’Scanlon, R-Monmouth, Michael Testa, R-Atlantic, Doug Steinhardt, R-Hunterdon, and Carmen Amato, Jr., R-Ocean, complained about the lack of transparency in hammering out details of the spending plan.

“Everything is being negotiated behind closed doors, and even the final budget won’t answer those questions. A new governor may put a fresh coat of paint on the process, but it’s still the same broken state budget—one that treats fairness, transparency, and taxpayers as an afterthought,” the letter said.

The nearly $61 billion budget matches the amount Sherrill, a first-term Democrat, proposed as a budget ceiling to lawmakers in March. Final approval is expected in the coming days.