July 8, 2025

NJ Senate and Assembly Approve Digital Driver’s License Bill – NJ State Policy Updates

Public Administration

State Moves Forward with Digital Driver’s License – On June 30th, the Assembly voted 75-3 to approve Bill A3518, which would allow the Motor Vehicle Commission (MVC) to issue digital driver’s licenses and ID cards. The bill also states that showing a digital ID on a phone does not constitute consent to search the phone. It would require security features to protect users’ personal information and allow the MVC to charge a “reasonable” fee for the digital cards. Proponents, including the American Association of Motor Vehicle Administrators, argued that digital licenses offer a major upgrade over physical IDs, which are prone to being lost, stolen, damaged, becoming outdated, or counterfeited. The Senate also approved the measure with a 31-6 vote, and it now awaits the Governor’s signature.

 

Education

Trump Administration Withholding About $143M in Federal Education Funding to NJ – On June 30th, the U.S. Education Department announced they are withholding approximately $7 billion in congressionally approved K-12 education funding to states nationwide, including about $143 million in funding for New Jersey, or roughly 13% of the total federal education funding the state received last year. The withheld funding primarily supports services for English learners, before- and after-school programs, and professional development. The Office of Management and Budget stated that the funding is under programmatic review, citing concerns that it has been misused to “subsidize a radical leftwing agenda.” State and district leaders warned that the loss of funding could have a significant impact on high-need districts.

 

Transportation

NJ Transit Fare Hike Takes Effect – Beginning July 1st, NJ Transit fares will increase by 3%, following a double-digit fare hike back in 2024. Advocacy groups, including the Tri-State Transportation Campaign and New Jersey Policy Perspective, criticized the back-to-back increases, calling them unfair and disproportionately burdensome to working-class riders. NJ Transit officials defended the policy as necessary to maintain service and fund service improvements. This year’s increase was approved as part of a broader plan to increase fares annually.