NJ Budget Special Bulletin - July 2026

Photo: Governor Mikie Sherrill delivering her Fiscal Year 2027 Budget Address in the Assembly Chamber at the New Jersey State House on Tuesday, March 10, 2026.

SHA's State Budget Update Summary

TRENTON: On June 30th, New Jersey Governor Mikie Sherrill signed a $60.75 billion state budget for FY2027. The budget closely follows Sherrill's proposal from March of this year but with $15 million in additional appropriations.

Despite the 1.6% increase from last year's budget, Sherrill’s new plan is projected to bring down the deficit from $3 billion when Sherrill first took office to $1.35 billion. The budget champions $12 billion in aid for schools, $6 billion in pensions for public workers, and $4.1 billion in property tax relief. However, SHA and its members are disappointed in the lack of investment in affordable and supportive housing development, especially regarding the Affordable Housing Trust Fund.

The Affordable Housing Trust Fund was restored but only $36 million was allocated for affordable housing production. This fails to fully meet the housing needs of New Jersey’s most vulnerable populations. Sustained investment in the Trust Fund remains essential to ensure the development of housing that allows people with disabilities and those experiencing homelessness to access stable, affordable homes. While the FY2027 budget retains the increased mansion tax on residential property sales over $2 million that was enacted last year, legislation dedicating 50% of the resulting revenue to the AHTF was not included in the final budget agreement.

"The investment in the Affordable Housing Trust Fund (AHTF) and this year's allocation are positive steps, but they are not enough to meet the scale of New Jersey's housing needs," said Kate Kelly, Executive Director, Supportive Housing Association of New Jersey (SHA). "The AHTF enables nonprofit developers to create affordable and supportive housing, particularly for projects that have few other financing options. New Jersey has taken important policy steps to increase housing production, but that legislation will only succeed if it is paired with critical, meaningful, and long-term investment. Every New Jerseyan can thrive with access to a safe, affordable home, where they can live independently. We urge policymakers to truly prioritize housing funding in future budgets."

Here are some additional updates relevant to SHA's community:

Affordable Housing & Homelessness


• The Neighborhood Revitalization Tax Credit Program (NRTC) was flat funded at $15 million, which falls short of the $50 million ask from housing advocates.
• An additional $10 million was allocated to DCA for homeless response programs totaling $35 million for homelessness response to expand rapid re-housing programs; to fund programs that assist individuals experiencing homelessness overcome obstacles to permanent housing; and to develop a program to increase housing availability and reduce housing costs through incentive payments to landlords, and $1.01 million was appropriated for the Homelessness Assistance Initiative. $4.75 million was allocated for the Office of Homelessness Prevention (OHP) and $4.36 million for homelessness prevention.
• $11 million was funded for the Bringing Veterans Home initiative, building on efforts that have already helped more than 2,200 homeless veterans secure housing.
• The Down Payment Assistance Program received a $5 million increase, bringing the total funding to $45 million and helping nearly 3,000 first-time and first-generation homebuyers.
• $25 million was allocated to rapid re-housing programs and $7.5 million went towards the affordable housing loan program.
• $2.291 million in supportive housing subsidies
• $2.511 million for Projects for Assistance in Transition from Homelessness (PATH)

Services and Supports


• The increase of about $154 million for the Division of Developmental Disabilities supports services for individuals with intellectual and developmental disabilities, many of whom rely on supportive housing and community-based residential options. However, this increase does not include the 3% cost-of-living adjustment (COLA) requested by SHA partners, which would have invested $42.1 million in state funding and leveraged an additional $42.1 million in federal Medicaid matching funds.
• Included in the budget package is an employer Medicaid assessment bill designed to generate additional revenue for the State’s Medicaid program by establishing a fee on certain employers whose employees receive health coverage through Medicaid. While the Medicaid assessment bill exempts people with disabilities and part-timers, it may be more difficult for Medicaid service providers to comply.
• The Department of Human Services (DHS) saw a decrease of $253.235 million, which resulted from changes to Medicaid. While many of the reductions reflect changes in federal Medicaid funding and enrollment projections rather than state service cuts, SHA will continue to monitor any impacts on supportive housing providers that rely on Medicaid reimbursement for supportive services.
• $1 million was allocated to The New Jersey Association of Centers for Independent Living (NJACIL).
• The Office of the Ombudsman for Individuals with ID/DD received continued funding.
• There was a $7 million increase to The New Jersey Reentry Corporation totaling $9 million.
• The budget did not provide funding for New Jersey’s five Crisis Receiving Stabilization Centers (CRSCs).
• The budget continues support for workforce development and employment initiatives through the Department of Labor and Workforce Development, including a $1 million increase for Workforce Development Partnership Fund initiatives.
• Maintenance of almost $20 million in funding for the ARRIVE (Alternative Responses to Reduce Instances of Violence & Escalation) Together Program
• A total of $213.864 million for the Supports Program – Individual and Family Support Services
• $1.415 million for the Community Care Programs
• $0 funding for the Crisis Receiving and Stabilization Centers (CRSC). Advocacy continues to support funding for these critical centers to complete the 988 crisis continuum of care.

Tax Relief and Other Funding

• $22.4 million for the Pharmaceutical Assistance to the Aged and Disabled and Senior Gold programs, which provide prescription drug benefits.
• A total of $64.369 million for the General Assistance Emergency Assistance Program
• $2,185,814 million in funding for the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) and $742,088 million for the Stay NJ Property tax relief programs
• New Jersey's Earned Income Tax Credit (EITC) was maintained.

Other Legislation


• A3481 - Passed in the Assembly, the bill increases eviction filing fees from $50 to $125 and creates a dedicated funding source for homelessness prevention services.
• A3497 - Passed in the Assembly and the Senate, the bill establishes "Forbidding the Algorithmic Inflation of Rent (FAIR) Act.”
• A3877/S2960 - Passed by both the Assembly and the Senate, the bill establishes certain State funding preferences for municipalities that enhance opportunities to develop housing.
• A794/S725 - Passed in the Assembly, the bill gives financially distressed towns a more streamlined way to acquire vacant, abandoned, or 
  tax-delinquent properties.

Kate Kelly, Executive Director

kate.kelly@shanj.org

Joseph Christensen, Communication & Membership Manager

j.christensen@shanj.org

Kate Leahy, Project Manager, Housing Navigation

kate.leahy@shanj.org

Denise Majka, Project Coordinator,

Strengthening Inclusive Leadership Initiative

denise.majka@shanj.org