New Jersey’s Democratic leaders have reached a budget agreement for fiscal year 2027, avoiding a state government shutdown ahead of the July 1 deadline.
Governor Mikie Sherrill, Senate President Nicholas Scutari, and Assembly Speaker Craig Coughlin announced the $60.7 billion deal Tuesday in a joint statement, describing it as a budget that “makes New Jersey more affordable and protects our state from the Trump Administration’s dangerous policies that harm residents.”
The agreement matches the spending outline Sherrill proposed to lawmakers in March. Key elements include an expanded Child Tax Credit for families, a full pension payment, and a plan to reduce the state’s deficit by half.
The deal also includes $100 million more than Sherrill originally proposed for the Stay NJ property tax relief program—with a greater share of benefits now directed toward lower-income senior residents.
State leaders called it the most property tax relief in New Jersey history—a crucial detail for a state that’s been crushed by the highest property taxes in the U.S.
“This budget provides tax relief to New Jerseyans who need it most while investing in our shared future,” the joint statement read. “It 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.”
Full details of the agreement had not been released as of Tuesday. A final draft still needs to be voted on by both chambers by 11:59 p.m. on June 30 to avoid a state government shutdown.
Republicans raised concerns about the process. In a letter to Democratic leaders, Senate Budget Committee Republicans wrote: “Everything is being negotiated behind closed doors. 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,” according to WHYY.
The brief: A $60.7 billion budget deal has been made. Final approval of the budget is expected in the coming days.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.