Environment & Energy
Gov. Sherill Signs Bill Directing State to Procure New Nuclear Power Plant – On July 13th, Gov. Mikie Sherrill signed Bill A4881, directing the Board of Public Utilities (BPU) to begin soliciting proposals for construction of at least one new nuclear power plant, with the aim of adding 1,100 megawatts of generating capacity to New Jersey’s grid. The Power NJ Act requires a collaboration between BPU and the New Jersey Economic Development Authority (EDA). The bill passed unanimously in both chambers. It is premised on projections that electricity demand will outpace the current capacity of the 13-state PJM regional grid over the coming decade. Under the law, electricity generators are required to purchase reliable capacity certificates from any nuclear plant approved under the legislation once it begins producing power. This is to ensure that the plant receives a fixed revenue stream and subsidizes its operations. Sherrill maintained that ratepayers would not bear the cost of construction overruns, a lesson learned from Georgia’s power plant that was seven years late and $18 billion over budget. The bill falls under Sherrill’s administrative focus on electricity costs, but it offers no near-term relief, with critics warning of insufficient guardrails to ensure consumers come out ahead, as the subsidy structure could run 40 years. Rate Counsel Brian Lipman’s office estimated that the bill’s subsidies could add between $7.80 and $22.43 to the average monthly electricity bill once the plant comes online, with larger increases possible if energy market prices fall. This potential risk stems from concerns over the possibility that advances in AI chip efficiency reduce data center electricity demand, thereby lowering market prices while the fixed certificate price remains unchanged. Supporters argue the procurement is necessary to avoid capacity shortfalls as electricity demand grows beyond current grid limits.
Health
Department of Pensions and Benefits Permitted to Temporarily Transfer Funds for SEHMP – On June 30th, Gov. Mikie Sherrill signed Bill A5330 into law, now approved as P.L.2026, c.28, permitting the director of the Division of Pensions and Benefits to temporarily transfer funds in certain circumstances involving the School Employees’ Health Benefits Program (SEHBP). The law allows funds to be transferred from the SEHBP fund for qualified education retirees to the SEHBP fund for active education employees if the active fund falls below the level required to cover 10 days of anticipated payments. Any borrowed funds must be repaid within 120 days. This bill is intended to help manage funds related to health insurance premium payments as they are projected to increase by 34% per state actuaries, in part because the active workers’ plan is expected to borrow $78 million to cover health claims in 2026. This legislation will help New Jersey school workers to ensure that their health plans have sufficient funding to cover the cost of health care claims.
Public Administration
New Jersey Expands Worker Protections for Paid Leave Beginning July 17th – Bill A3451, signed into law by Gov. Phil Murphy on January 17, 2026, included several provisions that took effect officially on July 17, 2026, expanding paid leave coverage for New Jersey workers. With this legislation, employees receiving Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits will now have job protection during their leave, even if they are not covered by the New Jersey Family Leave Act (NJFLA) or the federal Family and Medical Leave Act (FMLA). The law also expands NJFLA eligibility by lowering the employer coverage threshold from 30 employees to 15 employees, reducing the employment requirement from 12 months to 3 months, and decreasing the hours-worked requirement from 1,000 hours to 250 hours. The law’s phased reductions will continue beyond 2026, lowering the threshold to 10 or more employees in July 2027 and then five or more employees in July 2028. These changes expand access to job-protected leave for employees of small businesses, newer employees, many part-time workers, and employees receiving benefits related to domestic or sexual violence, while preserving the right of eligible workers to return to the same or an equivalent position after taking leave. State officials estimate the changes will extend job protections to roughly 400,000 additional workers.
U.S. Third Circuit Overturns NJ’s Semi-Automatic Assault Weapons Ban – On July 17, the U.S. Third Circuit Court of Appeals overturned New Jersey’s ban on assault weapons in a 10-5 decision, ruling the state ban on semi-automatic rifles and magazines with greater than 10 rounds of capacity is unconstitutional. The ruling upheld and broadened a 2024 lower court decision by U.S. District Judge Peter Sheridan, who had struck down New Jersey’s AR-15 ban, but allowed the state’s large-capacity magazine restrictions in place. The court majority ruled in favor of the Association of New Jersey Rifle and Pistol Clubs, following the U.S. Supreme Court’s 2022 Bruen precedent that gun regulations must be consistent with the nation’s tradition of firearm regulation. The dissenting justices argued that advancements in firearm technology could not have been foreseen by the authors of the Second Amendment; thus, interpretation of the amendment must consider the increased danger of modern firearms. Attorney General Jennifer Davenport notes that the state is considering options, which could include appealing the ruling to the U.S. Supreme Court.
Federal Oversight Ends for Women’s Correctional Facility in NJ – On Thursday, July 15, 2026, federal oversight of Edna Mahan Correctional Facility for Women in Clinton, New Jersey’s women’s prison, ended after a decision by a judge, closing out what amounted to a six-year investigation into the state’s failure to protect inmates from sexual abuse from its staff. U.S. Attorney Robert Frazer announced the termination of a 2021 consent decree that mandated reforms at the correctional facility. He furthermore noted that the State Department of Corrections has fully complied with the agreement, and a federal monitor also agreed with the decision to terminate it. Such reforms, which came after the arrests of 14 officers and staff who were involved in the alleged sexual abuse, included requiring staff to wear body cameras, implementing training focused on trauma and gender issues, and expanding access to certain recovery centered programs. State legislators moreover established new protections for female inmates under legislation signed by former Gov. Phil Murphy, from the time of entry until release. Following past violence, the closure of Edna Mahan was ordered by Governor Murphy, with a new facility currently being built in Chesterfield, while almost 400 women still remain at the old site. Indictments against the 14 former Edna Mahan employees connected to the 2021 cell violence were dismissed in 2025 after a judge cited prosecutorial delays, indictment deficiencies, and speedy-trial concerns.
U.S. Representatives Pass Bill to Make Daylight Saving Time Permanent Nationwide – On July 14th, the U.S. House of Representatives passed the Sunshine Protection Act, a bipartisan bill that would make daylight saving time permanent nationwide and eliminate the March and November clock changes. The bill passed by a vote of 308-117, and has since moved on to the Senate, where it was referred to the Committee on Commerce, Science, and Transportation for consideration. If enacted, most states would be given the option to remain on daylight saving time year-round, resulting in later sunsets throughout the year while allowing states such as Arizona and Hawaii to continue observing permanent standard time. Supporters argue that ending the seasonal time changes could reduce traffic accidents, improve public safety, increase evening economic activity, and eliminate the disruptions associated with changing clocks twice a year. However, many sleep experts argue that permanent daylight-saving time could negatively affect circadian rhythms, particularly during the winter months when later sunrises may impact sleep, school schedules, and workplace safety. The legislation has been introduced repeatedly since 2018 and has gained bipartisan support in multiple Congresses, including passing the Senate by unanimous consent in 2022 before stalling in the House. Although the bill passed the House with broad bipartisan support, New Jersey’s delegation was split, suggesting that the proposal could face mixed political support among state leaders and residents if passed.