Gibbons Law Alert

Gibbons Law Alert

Author: Alexandra C. Hayes

New Jersey Has Spoken: It’s Sherrill vs. Ciattarelli for the Governor’s Race

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Posted in Elections / State Government

On June 12, 2025

Please note the below polling numbers are reflective of the time of publication and are subject to change. The Gibbons Government Affairs team will continue to monitor the primary election results. On Tuesday, June 10, 2025, New Jersey voters went to the polls to select their party’s nominees for Governor and the General Assembly, as well as county and local officials. New Jersey’s 2025 primary resulted in wins for the gubernatorial front-runners, Democrat Mikie Sherrill and Republican Jack Ciattarelli. Sherrill currently serves as the U.S. Representative for the 11th congressional district and will not have to give up her congressional seat while running for Governor. Ciattarelli served in the New Jersey General Assembly from 2011 to 2018, representing the 16th legislative district. This will be his third time running for governor, having lost to Governor Phil Murphy in the 2021 gubernatorial election and to Kim Guadagno in the 2017 Republican primary. The 2025 primary is the first election to have taken place since the U.S. District Court of New Jersey issued a preliminary injunction in Kim v. Hanlon. This caused the Legislature to redesign the ballot and replace the “party line” with an office block design. Governor’s Race At the top of the ticket, 11 candidates ran for their party’s nomination – five on the Republican...

Gibbons SFY 2026 Report: New Jersey Department of Human Services Presents Its FY 2026 Budget Proposal

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Posted in State Budget

On May 28, 2025

This is the latest installment in a series of posts that offers a detailed look into the budget proposals for the major departments that constitute the state government. New Jersey Department of Human Services (NJDHS) Commissioner Sarah Adelman recently appeared before the Senate Budget and Appropriations Committee (SBA) and the Assembly Budget Committee (ABU) to present the department’s proposed FY 2026 budget, which totals $10.260 billion. This total is an increase of $283 million or 2.5 percent from the FY 2025 adjusted appropriation. Backdrop of Looming Federal Funding Cuts The impact of the Congressional budget reconciliation on Medicaid was a focus of the hearing, as the New Jersey Medicaid program is valued at $24 billion, which comprises $14 billion in federal share and $10 billion in State share. The federal budget resolution unlocking the reconciliation process required the House Committee on Energy and Commerce to cut a minimum of $880 billion through 2034. Given that Medicaid accounts for approximately 93 percent of non-Medicare spending under the jurisdiction of that House Committee, Medicaid is expected to receive the majority of the cuts. The proposal recently passed by the House seeks these cuts through work requirements, more frequent eligibility checks, and the cutting of federal funds to states that extend coverage to undocumented immigrants. The Commissioner testified...

Gibbons SFY 2026 Report: New Jersey Department of Children & Families Presents Its FY 2026 Budget Proposal

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Posted in State Government

On May 12, 2025

This is the latest installment in a series of posts that offers a detailed look into the budget proposals for the major departments that constitute the state government. On April 22, 2025, and April 30, 2025, New Jersey Department of Children & Families (NJDCF) Commissioner Christine Norbut Beyer appeared before the Senate Budget and Appropriations Committee (SBA) and the Assembly Budget Committee (ABU), respectively, to present the Department’s proposed FY 2026 $1.449 billion budget, which is a decrease of $74.6 million or 4.9 percent from the FY 2025 adjusted appropriation. Backdrop of Looming Federal Funding Cuts Congress recently passed a budget resolution requiring the House Committee on Energy and Commerce to cut a minimum of $880 billion through 2034. Medicaid accounts for approximately 93 percent of non-Medicare spending under the jurisdiction of the Committee. To meet the targeted objectives, the majority of the Committee’s cuts will likely come from the Medicaid program. To achieve these reductions, Republican lawmakers are considering proposals to shrink federal matching funds that support state Medicaid expansion populations and change program eligibility requirements by imposing work requirements. The Federal Medical Assistance Percentage (FMAP) is the percentage rate used to determine the amount a state receives from the federal government for its Medicaid program. Currently, states that have enacted Medicaid expansion under the...

Gibbons SFY 2026 Report: New Jersey Department of Banking & Insurance Presents Its FY 2026 Budget Proposal

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Posted in State Budget

On April 28, 2025

This is the latest installment in a series of posts that offers a detailed look into the budget proposals for the major departments that constitute the state government. On April 9, 2025, New Jersey Department of Banking & Insurance (NJDOBI) Commissioner Justin Zimmerman appeared before the General Assembly Budget Committee (ABU) to present the department’s proposed FY 2026 budget, which totals $65.3 million. This total is a decrease of $10 million or 13.3 percent from the FY 2025 adjusted appropriation. Backdrop of Federal Workforce Cuts and Funding Cuts On April 17, 2025, the Trump administration attempted to cut the Consumer Financial Protection Bureau (CFPB) workforce by approximately 90 percent, leaving only around 200 employees. The CFPB was formed in 2010 in the wake of the Global Financial Crisis and is tasked with protecting consumers in the financial sector by preventing abusive and deceptive practices. While the proposed shrinkage of the CFPB workforce was temporarily blocked by a federal judge, this move is the most recent action by the Trump administration signaling a shift toward deregulation and a reduced mission for the CFPB, leaving enforcement and supervision of financial entities to the states. Similarly, the Federal Deposit Insurance Corporation (FDIC) announced this week that more than 1,200 employees would be cut as part of the Trump...

Gibbons SFY 2026 Report: New Jersey Department of Environmental Protection Presents Its FY 2026 Budget Proposal

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Posted in State Budget

On April 22, 2025

This is the latest installment in a series of posts that offers a detailed look into the budget proposals for the major departments that constitute the state government. On April 9, 2025, New Jersey Department of Environmental Protection (NJDEP) Commissioner Shawn LaTourette appeared before the General Assembly Budget Committee (“ABU”) to present the NJDEP’s proposed FY 2026 budget, which totals $485.2 million. This total represents a decrease of $305.4 million or 38.6 percent from the FY 2025 adjusted appropriation. Backdrop of Federal Funding Cuts and Major Policy Changes Since President Trump began his second term in January 2025, his administration has implemented significant policy shifts impacting environmental efforts across the United States. On his first day back in office, President Trump issued an Executive Order withdrawing the United States from the Paris Agreement under the United Nations Framework Convention on Climate Change. This move marked the second time the United States has withdrawn from the accord during Trump’s leadership. That same month, the United States Environmental Protection Agency (EPA) removed all “climate change” references from its website and President Trump issued an Executive Order terminating “to the maximum extent allowed by law, all … ‘environmental justice’ offices and positions.” Additionally, President Trump issued an Executive Order indefinitely withdrawing all areas of the Outer Continental Shelf (OCS) from any...

Gibbons SFY 2026 Report: New Jersey Department of Health Presents Its FY 2026 Budget Proposal

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Posted in State Budget

On April 10, 2025

This is the first in a series of posts that offers a detailed look into the budget proposals for the major departments that constitute the state government. On April 3, 2025, and April 7, 2025, New Jersey Department of Health (NJDOH) Commissioner Dr. Kaitlan Baston appeared before the Senate Budget and Appropriations Committee and the General Assembly Budget Committee, respectively, to testify and take questions on the NJDOH’s $1.4 billion proposed FY 2026 State budget. Backdrop of Federal Funding Cuts Last week, the Trump administration sought to cut over $11 billion in public health grants allocated to U.S. states during the COVID-19 pandemic. While the Trump administration’s efforts have been temporarily halted by a federal judge, the grant funding at risk is used by states to track, prevent, and control infectious diseases, including measles and bird flu. Commissioner Baston testified that nearly $300 million was cut from the Centers for Disease Control and Prevention, which was earmarked, in part, for local public health department funding. The Commissioner also highlighted that the funding supported direct care and disease and addiction prevention efforts. Investments in New Jersey’s Hospital and Health Care System The NJDOH’s Health Systems Branch oversees and ensures appropriate care in more than 2,000 regulated facilities statewide, including hospitals, nursing homes, and other healthcare facilities....

Governor Murphy Proposes FY 2026 Budget Focused on Fiscal Responsibility and Planning for New Jersey’s Future

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Posted in State Budget

On February 26, 2025

Governor Phil Murphy presented his State FY 2026 Budget to a joint session of the Legislature on Tuesday, February 25. This year’s address marks the final budget of Murphy’s eight years in office. The proposed budget totals $58.05 billion, which is $70 million less than the FY 2025 adjusted budget appropriation. The FY 2026 budget includes a $6.3 billion surplus and a structural deficit of $1.2 billion. The Governor’s budget address was centered around themes of fiscal responsibility and planning for future economic security and opportunities for all New Jerseyans. Governor Murphy reaffirmed his administration’s intentions to work in concert with the Trump administration. He noted, however, that there is a distinct possibility that New Jersey may need to adopt a “break the glass” strategy if New Jersey faces the harsh reality of losing billions of federal dollars for state programs. Affordability and Property Tax Relief Governor Murphy addressed rising costs and inflation in his address. The proposed budget aims to improve affordability by addressing property taxes and increasing access to housing. The budget includes $28.5 billion in direct and indirect property tax relief, including nearly $4.3 billion in direct property tax relief through programs such as the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program and the Senior Freeze...

“We’re from Jersey, Baby!” Governor Murphy Delivers the 2025 State of the State Address

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Posted in State Government

On January 15, 2025

Yesterday afternoon, Governor Phil Murphy delivered his seventh State of the State address at a joint session of the New Jersey Legislature. This address re-invoked the “stronger and fairer” New Jersey theme that marked Governor Murphy’s first term, imbued with the subtext of innovation. During the address, the Governor looked back at some of the events that have occurred while he has been in office, including a global pandemic, record high inflation, and the outbreak of two international conflicts. He also highlighted the State’s accomplishments as the “medicine chest to the world,” its growing entertainment and film industry, and its winning bid to host the 2026 FIFA World Cup Final. In all, Governor Murphy presented a broad scope of issues his administration seeks to work on during his final year in office. Those priorities include affordability and economic opportunity; childcare and education; healthcare and reproductive rights; transportation and infrastructure; the environment; the protection of fundamental rights; and criminal justice reform. Affordability and Economic Opportunity The Governor acknowledged the rising cost of living and efforts to make New Jersey more affordable. He highlighted programs such as ANCHOR (geared toward property tax relief) and RetireReady NJ (a publicly run retirement savings program), as well as a higher minimum wage rate that has nearly doubled since he took...

Two Major Updates for New Jersey Alcoholic Beverage License Holders on Outdoor Dining Rules and New Mandatory Signage for Businesses

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Posted in State Government

On November 26, 2024

Just in time for the Thanksgiving holiday, New Jersey has taken action on two items that impact the operations of alcoholic beverage licensees. The first action codifies the COVID-era outdoor dining and beverage service rules in statute, while the second requires certain alcoholic beverage licensees to post signs that bring awareness to the risks of human trafficking. Renewal of Outdoor Dining and Beverage Service Permits Governor Murphy signed S3608/A4866 into law on November 25, 2024, making permanent the COVID-era outdoor dining permissions for restaurants and certain alcoholic beverage retailers and manufacturers. Under the new law, the holder of a temporary expansion permit issued by the New Jersey Division of Alcoholic Beverage Control (the “Division”) may have its temporary permit converted to an annual permit, which is renewable with the approval of local officials. Owners and operators of these businesses are permitted to use certain outdoor spaces as an extension of their business premises for the purpose of conducting sales of food and beverages, including alcoholic beverages if licensed. This includes the continued use of fixtures such as covered and uncovered patios and decks, tents, canopies, umbrellas, tables, and chairs for outdoor dining. The enactment of S3608/A-4866 brings to a close four years of temporary outdoor dining rules. Governor Murphy originally signed legislation to expand outdoor dining...

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