July 6, 2026

Gov. Sherrill Signs Voter Rights Act into Law – NJ State Policy Updates

Public Administration

Gov. Sherrill Signs Off on FY2027 Budget – On June 30th, Governor Mikie Sherrill signed the fiscal year 2027 budget into law, marking it the largest budget in state history with nearly $61 billion earmarked in funding. Total appropriations are $60.7 billion, 3.7% higher than FY2026’s budget, with $7.3 billion in spending reserved for the state pension system, $12.4 billion for K-12 schools, and $1.4 billion for preschools. The budget also continued to fund various property tax relief programs including the Anchor Program and Senior Freeze, but implemented updated restrictions for the Stay NJ program, including adjusting the income limit for qualification from $500,000 to $200,000.

Gov. Sherrill Signs Voter Rights Act into Law – On July 2nd, Governor Mikie Sherrill signed Bill S282/ A1715, the “John R. Lewis Voter Empowerment Act of New Jersey” (NJVEA) into law. The new law, which was primarily sponsored in the Senate by Senators Nick Scutari (D-22), Shirley Turner (D-15), and Joe Cryan (D-20) and then in the Assembly by Assemblywoman Verlina Reynolds-Jackson (D-15), seeks to ensure that there are stricter voter protections for eligible New Jersey voters that help to combat voter suppression and intimidation, improve language access materials and assistance for all voters, including those whose primary language isn’t English, and ultimately ensure that all ballots are both cast and counted equitably. Moreover, the law requires certain political subdivisions to get approval from the Attorney General for election changes, mandates public involvement in redistricting, including hearings and outreach, and allows individuals to report violations to governments before suing, with potential recovery of costs up to $50,000. With this new law in place, New Jersey has become to first state to pass its own voting rights law in the wake of the U.S. Supreme Court’s ruling in Louisiana v. Callais last month.

 

Health

Gov. Sherrill Signs Law Establishing Medicaid Fee for Employers – On June 30th, Governor Mikie Sherrill signed bill A5324 into law, establishing an annual fee for employers whose employees receive health insurance through the State Medicaid program. This law applies to employers with at least 50 employees enrolled in Medicaid and requires them to pay an annual fee for each covered employee and dependent. The fee ranges from $325 to $725 per employee depending on how many are receiving Medicaid benefits. The revenue generated will help offset the State’s Medicaid costs. Bill A5324 exempts employees with qualifying disabilities, prohibits employers from considering an employee’s Medicaid status when making employment decisions, and allows employers to appeal fee assessments.

State Enforcement Law for Group Homes for People with Disabilities Goes into Effect – On July 1st, a law (Bill S3750) signed by former Gov. Phil Murphy in January 2026, went into effect, granting the state of New Jersey new enforcement authority over residential programs for people with disabilities. These enforcements include fines up to $25,000 for abuse or neglect that results in resident injury requiring more than basic first aid. Facilities that repeatedly fail to conduct criminal background checks, mishandle drug test protocols, fail to properly investigate reported incidents, or fail to comply with state requirements will incur $10,000 penalties. Approximately 30,000 people with disabilities live in private or group homes across New Jersey, a population that state and ombudsman reports have long identified as vulnerable to abuse and neglect by underprepared or under-supervised staff. The law introduces financial consequences for repeat violations as an incremental step towards stronger state oversight over abuse and neglect in the disability services system.

Health Care Business Bill Advances in Both Chambers – Introduced earlier this year, Bill S3463 has been revised and passed in both houses as of June 30th. Sponsored by Senator Gordon Johnson (D-37) and Senator Anthony Bucco (D-25), this statute requires health businesses to register themselves as Health Care Service Firms if they meet certain criteria. This bill would include business that is conducted through health websites or apps that promote companion services, health care services, and personal care services. The bill was amended to give clear regulations on how these health firms would financially report their earnings. It states that all health care service firms must submit financial statements to the director of the Division of Consumer Affairs of New Jersey, which need to match the amounts reported on the firm’s tax returns for that year. In addition, firms that make less than $500,000 in compensation for the New Jersey Medicaid Personal Care Assistance Services, and that generate less than $10 million in gross revenue, must submit an audit to the director of the Division of Consumer Affairs by the third calendar year after the date of registration as a Health Care Service Firm, no later than September 30th. There is also a $500 a day penalty for every day a firm operates unregistered. This bill aims to hold businesses who provide different types of health-related services financially accountable.

 

Environment & Energy

NJDEP Issues Drought Warning for New Jersey – The New Jersey Department of Environmental Protection (NJDEP) has imposed mandatory water conservation measures across several municipalities including Ocean and Monmouth Counties, Madison, Park Ridge, and Woodcliff Boroughs, and Mount Olive Township due to worsening drought across New Jersey with southern and coastal regions suffering extreme drought. New Jersey American Water mandated customers in Ocean and Monmouth Counties limit non-essential outdoor water usage to twice per week, while Madison Borough limits usage between 7am and 6pm and based on odd-even street numbers and calendar day. In May, Governor Mikie Sherrill encouraged voluntary reductions to water usage to preserve aquifer levels in anticipation of dry summer conditions. Critics say voluntary reductions are not enough, and water scarcity is a result of poor government planning to fortify New Jersey’s water supply from the effects of climate change. To conserve water, NJDEP recommends limiting lawn watering to twice per week, growing drought resistant native plants, installing rain barrels and more.

Nuclear Power Expansion Bill Passes Both Houses – On June 30th, A4881/S4296, known as the “Powering Opportunity, Workforce, and Energy Reliability for New Jersey Act, or “Power NJ Act,” passed in both the Senate and Assembly. The act promotes the creation of nuclear power plants by ordering the New Jersey Board of Public Utilities to procure the development of at least one new nuclear plant. It also mandates other energy producers to purchase reliable capacity certificates to subsidize the new nuclear plants. The bill is intended to increase the state’s energy supply to meet growing electricity demand, particularly from data centers, while supporting clean energy in New Jersey.

Bill to Implement Tariffs on Data Centers Passes Both Houses – On June 30th, Bill A796 passed in both the Senate and Assembly after being amended to require electric public utilities to establish special electricity tariffs for large data centers with peak electricity demands of 100 megawatts or more. The bill was first introduced to the General Assembly on January 9th by former Assemblyman Reginald W. Atkins (D-20) and referred to the Assembly Telecommunications and Utilities Committee before advancing through both chambers of the Legislature. Under the bill, the New Jersey Board of Public Utilities would be required to ensure that the costs of serving these large data centers, including new infrastructure and grid upgrades, are borne by the data centers rather than residential and other utility customers. The legislation also includes provisions to reduce stranded costs and encourages the use of energy efficiency measures, clean energy generation, and energy storage to help meet the growing electricity demand associated with data centers.