NJ Transit proposes taking out $300 million loan

New Jersey Transit is considering taking out a $300 million line of credit with a Canadian bank to cover expenses as the state awaits federal funds.

NJ Transit unveiled the proposal on Friday, four days after the agency proposed a roughly 9 percent fare hike to help close a $60 million budget gap.

An NJ Transit spokeswoman says the proposed loan from Royal Bank of Canada was chosen after a competitive process and the funds would be used as a “cash flow management tool.”

NJ Transit incurs expenses throughout the fiscal year but receives federal funds at the end of it.

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The agency took out a $241.5 million loan last year from the transportation trust fund to cover costs.

The board is set to consider the loan in May.

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