As New Jersey prepares to elect our next governor tomorrow, November 4th, the months ahead offer a pivotal opportunity to chart a path toward a more innovative and resilient state. To help inform this transition, the New Jersey State Policy Lab invited affiliated faculty and staff to identify the most pressing priorities for the next administration. Regardless of the outcome of the election, we suggest the next administration address these research-informed, evidence-based priorities:
Electricity:
Reinvesting in Electric Power Distribution Networks
Data centers, electric vehicles, solar arrays, and electric heat pumps for space heating are stressing the local power distribution systems that deliver electricity from the substation to the customers’ meters. These new loads and distributed generation technologies are placing increased demands on old wires, reducing power quality, and increasing the demand for ancillary services to keep alternating current flowing safely and efficiently. These concerns cannot be mitigated by investing in new power plants or bulk power transmission networks. Instead, it is necessary to incorporate new, advanced power electronics into local distribution networks, from the substation to the local step-down transformer to the customers’ meter. Without such investment, local distribution networks will not be able to reliably handle the increased use of these “inverter-based” technologies by customers. Many areas of NJ are already experiencing severe constraints. The regulated electric utilities own these assets and should be incentivized to improve them, something they have been slow to do on their own. Unlike the bulk power system (generators and transmission lines) that is regulated partly by the federal government and partly by states in the regional power market, the NJBPU has sole regulatory authority over the electric distribution companies that own and operate these distribution systems. Thus, the NJ governor can and should strongly influence industry decisions on this matter.
Storing Energy
Energy storage can be a transformative policy investment with the potential to make electricity less expensive. New Jersey is falling behind other states that have 20-40% of their energy mix from solar with tens of thousands of gigawatts of battery deployment. Rooftop and utility scale solar is the cheapest and fastest strategy to add new renewables to the grid and, at the same time, bring down costs.
Rethinking Electricity Rates
There is a need for approaches that result in a “rethinking” of rate design to manage the large-scale growth and demand for electricity to make it cost-effective and equitable and to drive down energy use, including during peak demand times. Examples of elements of rate design include: considering rate designs that are more reflective of the underlying costs to provide electricity service to customers, testing time varying rate options with a goal to make lower rates widely available to customers when advanced metering infrastructure is fully deployed, and considering income-tiered fixed charges.
Infrastructure:
Strengthening Local Capacity to Apply for and Implement Infrastructure Grants
Investing in local grant administration capacity is an investment in New Jersey’s future. By dedicating resources to help municipalities and counties plan, fund, and implement infrastructure projects including transportation, environmental resilience, energy, economic development, and community development initiatives, the State can accelerate progress on safety, equity, and economic growth across communities. Yet many local governments lack the technical expertise and staff capacity needed to navigate complex funding systems involving federal, state, regional, and philanthropic sources.
New Jersey now has a critical opportunity to strengthen cross-agency support for local project sponsors. Expanding technical assistance and grant administration capacity will not only improve project delivery and community outcomes but also position the State to secure significantly more federal funding for local infrastructure and development.
To maximize impact, it is recommended that the new Governor:
- Provide tailored assistance to help local governments identify and pursue funding opportunities from state agencies, federal programs, regional entities, and foundations.
- Explore a consolidated grant application process across state agencies and develop standardized templates for state and federal grant applications, project budgets, and implementation timelines to reduce administrative burden and improve competitiveness.
- Invest in ongoing research to identify best practices, strengthen grant administration, and advance equity-focused technical guidance for local governments.
Resilience Funding
A major policy gap is the lack of a stable funding source to support climate adaptation and resilience efforts statewide. Resilience funding is not disaster response, and two models exist in other states for consideration by New Jersey:
- The New York State Clean Water, Clean Air and Green Jobs Environmental Bond Act, which provides $4.2 billion for projects to address environmental and climate change issues, including projects to adapt to climate change. The Act requires that 35% of funds be directed to disadvantaged communities.
- Climate Superfund Legislation adopted by Vermont and New York, which impose liability on fossil fuel companies for damages from climate change and establish programs to collect and distribute compensation for adaptation and resilience efforts.
Economics:
Strengthening the Long-term Fiscal Stability of the State Government
New Jersey’s next governor must prioritize long-term obligations and rainy-day reserves because together they pose serious risks to fiscal stability. The state currently carries more than $200 billion in unfunded pension and retiree health liabilities, with many of the major public employee retirement systems funded at barely 50–60%, thereby locking future budgets into escalating mandatory payments. At the same time, New Jersey’s rainy-day reserves remain at only about 5% of annual spending, far below the 10–15% recommended for a state with volatile revenues like New Jersey. The combination of heavy fixed costs and thin emergency savings will limit the state’s ability to manage recessions, protect current programs, or invest in new projects. Neglecting these issues means it won’t be only future politicians who pay the price, but working families, retirees, and children who will face higher taxes, service cuts, or unfulfilled commitments.
Environment:
Reducing Greenhouse Gas Emissions and Vehicle Miles Traveled (VMT)
New Jersey aims to reduce greenhouse gas emissions by 80% below 2006 levels by 2050. Achieving this goal requires ambitious action in the transportation sector, with a greater emphasis on land use and smart growth efforts to reduce vehicle miles traveled (VMT)—ensuring that all new light-duty vehicles be zero-emitting vehicles by 2035 and all new NJ Transit buses be 100% zero-emission by 2032. Meeting these targets will also depend on policies that reduce the need for private vehicle travel.
To meet these targets, it is recommended that the new Governor:
- Develop a “contingency plan” in collaboration with other adjacent states to advance electric vehicle adoption and charging infrastructure that is not dependent on federal policies, including the continuation of the Clean Corridor Coalition which is a New Jersey-led four state effort to deploy medium- and heavy-duty zero-emission vehicle charging infrastructure for freight electrification along the I-95 corridor and adjacent roads.
- Provide subsidies to expand the statewide network of charging infrastructure, including increasing access to home charging.
- Work with the state Department of Transportation (DOT) and MPOs to develop methods for tracking vehicle miles traveled (VMT) and mitigating emissions associated with an increase in road capacity, as implemented in other states such as California, Colorado, and Minnesota.
- Work with municipalities, counties, and the state DOT to reduce road capacity in selected communities to improve safety, increase walkability and bikeability, and encourage alternate modes of travel.
- Increase state support to communities seeking to build more compact, transit-accessible development as through the Transit Village Initiative.
- Support infrastructure improvements needed to maintain system reliability and safety as electric buses and trucks become more common, recognizing the additional demands these vehicles place on roads, bridges, and charging facilities.
Health:
Developing a Multisector Plan for Aging
New Jersey’s population is aging rapidly. Between 2010 and 2021, the state’s total population grew by 5%, while the number of older adults increased by 31%. Multisector Plans for Aging (MPA) are a 21st century policy innovation for states to become more “aging ready.” They involve high-level gubernatorial leadership to ensure that a lens toward the aging population lens is incorporated within all departments of state government—including human services and health, as well as workforce development, community development, transportation, and the like. Multisector Plans for Aging also provide a long-term “whole of society” framework for cultivating public-private partnerships and alignment across state, county, and local administrations to seize the opportunities and address the challenges of population aging. New Jersey has been making steady progress on broadening policy attention on aging. Now is the ideal time for the next governor to accelerate this work through an MPA. This innovation holds great promise toward a better future for us all as we, our families, and communities age in New Jersey.
Housing:
Addressing the Affordable Housing Crisis with Multigenerational Living Spaces
The housing crisis in New Jersey demands comprehensive, multi-pronged solutions. One immediate and achievable step is the passage of Accessory Dwelling Unit (ADU) legislation (A2792). Sometimes known as in-law suites or garage apartments, ADUs are smaller homes or living spaces built on the same property as an existing house. ADUs represent a practical policy tool that can increase housing supply without requiring extensive new infrastructure, while simultaneously supporting multigenerational living arrangements and providing affordable housing options. Legalizing ADUs statewide would enable municipalities to address local housing shortages while promoting aging in place and community integration. This legislation offers a fiscally responsible pathway to expand housing access and should be prioritized in the next administration’s policy agenda.
Transportation:
Facilitating Opportunities for Transit-Oriented Development (TOD) to Advance State Goals
The next administration should maximize the value of transit assets to deliver affordable housing, sustainable growth, and economic development by supporting municipalities, NJ Transit, and local zoning improvements. By supporting Transit-Oriented Development (TOD), New Jersey has the chance to revitalize its downtowns, advance affordable housing, reduce congestion and vehicle miles traveled (VMT), and generate revenue for NJ Transit. Yet many municipalities and NJ Transit face challenges in aligning zoning, financing, and funding efforts, limiting their ability to fully leverage transit assets for affordability, sustainability, and growth.
New Jersey has the opportunity to strengthen coordination and capacity for TOD implementation. By expanding technical assistance, modernizing local zoning, and establishing dedicated funding mechanisms for station-area improvements, the State can accelerate TOD projects that deliver affordable housing, economic development, and environmental benefits. These strategies align with statewide objectives, including NJ Transit’s LAND plan to expand real estate opportunities on agency-owned land, the State Development and Redevelopment Plan’s prioritization of infill development, and the State’s goal to reduce greenhouse gas emissions by 80% below 2006 levels by 2050.
To achieve these goals, it is recommended that the new Governor:
- Increase state support for the New Jersey Transit Village Initiative by providing additional technical assistance and grant funding to participating municipalities.
- Work with the Legislature to enhance the Transit Village Initiative by enabling it to offer incentives for mixed-use and affordable projects near public transportation.
- Develop model ordinances for municipalities that increase residential densities, reduce minimum parking requirements, and allow for mixed-use development near transit stations.
- Grant NJ Transit broader authority over land use decisions on agency-owned property to unlock the full value of its assets. Streamlining local zoning barriers would help the agency advance TOD projects that generate non-farebox revenue and expand affordable housing.
- Simplify and accelerate approval processes for development near transit to reduce delays and encourage private investment in TOD. Consider waiving or streamlining environmental reviews for mixed-use, high-density TOD.
Committing to Eliminate All Traffic Deaths and Serious Injuries by 2040
Established through legislation passed by the New Jersey Legislature and signed into law in January 2025, the New Jersey Target Zero Commission unites 13 member agencies in a coordinated statewide effort to achieve the ambitious but essential goal of eliminating all traffic deaths and serious injuries by 2040.
The Commission’s Target Zero Action Plan lays out actionable strategies to achieve this goal, but its success will require sustained executive support. By prioritizing the NJ Target Zero Commission, the next Governor will affirm a strong commitment to public safety, equity, and innovation in transportation policy, ensuring every New Jerseyan can travel safely, regardless of mode or location.
To advance the Commission’s work, the Governor should:
- Encourage active participation and alignment among all 13 member agencies to set goals, craft strategies, and deliver actionable recommendations.
- Uphold the statutory requirements for biannual meetings, public hearings, and the development of a publicly accessible website and data portal.
- Ensure sufficient funding and staffing to support the Commission’s operations, data collection and analysis, and outreach activities.
- Support the publication of annual reports tracking roadway fatalities, serious injuries, and progress toward action items to maintain accountability and guide policy decisions.
Education:
Aligning Higher Education with New Jersey’s Evolving Labor Market
New Jersey’s public colleges and universities represent a key cornerstone of the state’s economic, civic, and cultural life. Stable state investment allows these institutions to plan responsibly, keep tuition affordable, and continue to serve students who want to learn, live, and work here. Supporting the full ecosystem—from community colleges to research universities—ensures that New Jersey remains competitive and continues to develop the talent that drives our state forward.
Additionally, New Jersey has an opportunity to better align its higher education system with the state’s evolving labor market. Demographic shifts, such as a declining number of high school graduates and growing demands for an aging population, are influencing workforce supply and increasing pressure on sectors like healthcare. Concurrently, advances in artificial intelligence are reshaping job roles and skill requirements across industries. Analyzing enrollment and labor market trends can identify insights for colleges and universities to align programs with in-demand careers. By investing in data-driven research that connects educational offerings with high-growth occupations and emerging skill needs, New Jersey can strengthen its talent pipeline and support long-term economic growth. Encouraging data-informed planning and coordination can help institutions remain responsive to regional and statewide needs while ensuring that public investment yields public benefit. Public higher education works best when institutions, state agencies, and communities are aligned.
Given the current environment around higher education, the new governor should also convene a summit among the leaders of higher education institutions in New Jersey, to address the changing federal funding and other policies impacting higher education.
Teacher Training
Despite the fact that New Jersey has strong teacher retention and a low teacher-to-pupil rate, the pipeline for new teachers is not strong. Specifically, subject areas like math, computer science, and multilingual learning face potential shortages. Hence, the state should be more proactive in addressing the issue with college and university administrators. Continued support for teacher preparation, mentoring, and professional learning will help address shortages in high-need fields while ensuring the next generation of educators is well prepared to serve the state’s schools and colleges.
Women, Children, & Families:
Investing In the Childcare System to Strengthen Labor Force Participation
The true cost of providing high-quality care far exceeds what most families can afford, leaving providers and workers chronically undercompensated while parents face constrained choices. Targeted public investment is necessary to rebalance the system and ensure it functions effectively for families, educators, and the broader economy.
New Jersey’s childcare subsidies have historically supported the lowest-income families (those earning up to 200% of the federal poverty line), but applications are currently frozen, leaving many families without access to assistance. Even when available, eligibility limits remain low relative to the state’s cost of living. Many full-time working parents earning near minimum wage earn just above the threshold, forcing them to spend a large share of their income on care, adjust work schedules, or leave the labor force altogether. Addressing these challenges presents a significant opportunity for the next administration to strengthen labor force participation, support working families, and promote the healthy development and well-being of New Jersey’s children. A more equitable and sustainable childcare system would yield long-term economic and social returns for the state.
Fostering Inclusion through the World Cup
Work with small, minority, and women-owned business leaders, to better assure access to contracts related to the hosting and staging of the World Cup. Utilize the visibility of the World Cup, to foster a stronger spirit of inclusion, belonging, and civility—and working as one-NJ-team in our state.
Digital Equity:
Ensuring Ethical Governance over New and Existing Technologies
Algorithmic fairness and the ethical use of AI must be a top policy priority for New Jersey’s next governor, especially given the state’s rich diversity and its strategic role in healthcare, pharmaceuticals, and finance. As AI systems increasingly influence decisions in medical diagnostics, drug development, insurance underwriting, and credit scoring, unchecked biases can deepen existing inequities. Ensuring that AI systems are transparent, accountable, and equitable is not just a technical concern but a moral and economic imperative. By championing fairness-aware AI policies, the governor can foster innovation in NJ’s life sciences and financial sectors and position the state as a national leader in ethical tech governance.
Public Administration:
Building Capacity to Manage Powerful Technologies
New Jersey has a long history as a center of technological innovation. This legacy of innovation positions New Jersey well to lead on questions of emerging technology in government, but only if we ask the right questions.
Right now, most of the conversation is stuck on policy and questions such as what to regulate or what to restrict. While these issues are important, we also need to decide how governments should harness and manage powerful technologies to create public value. This should be considered a practical management challenge that exists irrespective of political affiliation or desire for a smaller or a larger government. How smartly a state agency integrates AI and automation into its daily work may very well shape public outcomes, perhaps more than any high-level policy.
Building out capacity in this domain is critical. Training state employees to use these tools well, and to understand their limits, will be an important deciding factor in whether emerging technologies improve our state government’s performance or create new legitimacy problems. The next governor must focus on continuing to build this internal capacity. During this transformative time, continuing New Jersey’s legacy not only as a hub for innovation, but also as one of the best places to live in the United States will depend not only on the policies we develop, but on our ability to empower public servants to use these new tools effectively for the public good.
The New Jersey State Policy Lab would like to thank all the Rutgers University faculty and staff who submitted policy priorities for the next governor including: Ayse Akincigil, Clint Andrews, Matt Bond, Stephanie DiPetrillo, Nichole Garcia, Emily Greenfield, Michael Hayes, Marjorie Kaplan, Debra Lancaster, Kevin Majewski, Lucas Marxen, Charles Menifield, Bob Noland, Greg Porumbescu, Ronald Quincy, Slawa Rokicki, Kristoffer Shields, Vivek Singh, and Leigh Ann Von Hagen.