Economics
New Jersey Sees Slight Boost in Jobs, Tax Revenue at Fiscal Year Midpoint – New Jersey reported a modest increase in job gains (+9,000 in December) and tax revenues (+4.8% year-to-year) as the fiscal year reached its midpoint, leaving state tax collections slightly ahead of projections. New Jersey has experienced uneven job reports in 2025, with several months of net gains and several months of net losses. Income tax collections for the first half of the fiscal year were up 13% compared to last year, bringing in $960 million in additional revenue. The state’s income tax is the largest single revenue source for the state’s budget, and funds K-12 public school aid and direct property tax relief programs like Anchor, Stay NJ, and Senior Freeze. These figures offer Governor Mikie Sherrill some breathing room as she prepares her first major budget proposal in office. The annual budget message from Gov. Sherrill is required to be delivered to lawmakers on or before the fourth Tuesday in February, though the deadline can be pushed by lawmakers.
Public Administration
Gov. Sherrill Expands Utility Bill Credits and Pauses Rate Increases – On January 20th, Gov. Sherrill signed her first executive order instructing the New Jersey Board of Public Utilities (BPU) to expand utility bill credits that had been sent out to ratepayers last summer and pause approvals for any new rate increases. The bill credits would be at least partially funded through a state fee on electricity suppliers unable to meet the state’s renewables standards. Sherrill ordered the BPU to issue its first wave of credits by July 1, 2026. The executive order also requires the BPU to consider reducing specific surcharges and retool the Clean Energy Program to focus on ratepayer relief and energy efficiency programs.
Democratic Lawmakers Call for Limits on Gubernatorial Clemency Powers – Three lawmakers, Sen. Vin Gopal (D-Monmouth), Asw. Margie Donlon (D-Monmouth), and Luanne Peterpaul (D-Monmouth), called for changes to state pardon powers, alleging the wave of clemencies in the wake of the Murphy administration and more broadly at the federal level were an exploitation of their powers. Murphy issued more than 450 clemencies, prompting criticism that the power was exercised without sufficient oversight. However, limiting the governor’s pardon powers would not be a simple act, as the power to overwrite state criminal convictions and penalties stems from the state’s constitution and provides no means for legislators or courts to review grants of gubernatorial clemency. This means only a constitutional amendment would be sufficient to limit or change how pardons and commutations are delivered in New Jersey.
Outgoing Gov. Murphy Vetoes Immigrant Protection Bill – On January 20th, outgoing Governor Phil Murphy vetoed two bills intended to expand immigrant rights in the state in the final hours of his time in office. The vetoed bills would have codified the 2018 Immigrant Trust Directive into law, which restricts when local, county, and state police can aid federal immigration agents, and would have created new safeguards for how personal data obtained by hospitals, schools, and libraries can be shared. Gov. Murphy had conditionally vetoed the data privacy protection bill earlier in the month, after which legislators agreed to the suggested amendments, only to veto it again when it arrived back at his desk. Murphy’s justification for the veto is that his administration had discovered a “drafting oversight” in the bill which “could create significant complications” and conflict with federal law.
Health
New Jersey Unveils Changes to License Rules for Outpatient Treatment Centers – On January 20th, the New Jersey Department of Health, with the Department of Human Services, announced that it would be streamlining existing license regulations for outpatient health care facilities to create one license for providers offering primary care, mental health, and addiction services. Under the previous fragmented regulatory system, facilities that wished to provide primary care, mental health, and addiction services were required to obtain three licenses for a single location. Under the new rules, providers can obtain a single, integrated license covering all three health services and simplified the regulations required. The new rules also include provisions that allow facilities to maintain unified medical records for patients and enable shared treatment spaces and expand access to withdrawal management services and medications for addiction treatment.