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