June 2, 2025

June 2, 2025 – New Jersey State Policy Updates

Housing

Assembly Passes Bill to Define Standards for Allowable Rent Increases – On May 22nd, the Assembly voted 50-26 to pass Bill A5432, which would codify a judicial test to determine whether a rent increase is “unconscionable”. Under the measure, a judge would assess whether an increase is excessive based on criteria such as the size of the increase, landlord expenses, comparable area rents, property conditions, and other relevant characteristics. Supporters contend the bill would expand housing affordability, while some critics argue its vague language could lead to increased litigation and business disruption. State housing costs rose nearly 6% in the past year. This bill was part of a wider package of legislation that the Assembly passed to limit housing costs concerns, including capping rent increases for modular, industrialized, and manufactured homes and limiting residential rental application fees to a maximum of $50.

 

Public Administration

Senate Committee Advances Bills to Curb Rising Electricity Prices – On May 22nd, the Senate Environment and Energy Committee advanced several bills aimed at minimizing the impact of rising electricity prices that are set to start on June 1st. The measures would establish a separate rate structure for large data centers to increase their share of electricity costs, incentivize utility-scale energy storage, and streamline approvals for residential solar projects. This movement also comes amid growing concerns among lawmakers and utility officials over rising electricity usage from data centers. Supporters, including environmental groups and the New Jersey League of Conservation Voters, argued that the bills promote fairness by shifting costs away from ratepayers and accelerating the deployment of new energy supplies. Critics, including business groups, particularly opposed the data center measure, warning it could deter investment in the state.

Four New Jersey Cities Face Federal Lawsuit Over Immigration Policy – On May 22nd, the US Department of Justice filed a lawsuit against four cities, Newark, Jersey City, Paterson, and Hoboken, as well as their elected officials, accusing them of interfering with the federal government’s immigration deportation and detention efforts. Federal prosecutors argued that local policies protecting undocumented immigrants violate the Constitution’s Supremacy Clause and obstruct federal authority. The mayors of the targeted cities strongly criticized the lawsuit as baseless and expressed a unified stance of defiance.

 

Health

Senate Committee Advances Vaccine Bills Amid Measles Surge and Lingering Skepticism – On May 19th, the Senate Health Committee voted 5-3 along party lines to advance two vaccine-related proposals. Bill S1956 would automatically enroll residents in the state’s vaccine registry unless they opt out, while Senate Resolution 127 urges public vaccination in response to falling vaccination rates and rising measles cases. Supporting lawmakers and pediatric health experts argue that the measures will strengthen public health preparedness and vaccine uptake. Opposing lawmakers warned that automatic enrollment could discourage some from seeking vaccines. According to the CDC, more than 1,000 measles cases have been reported across the country so far in 2025, including three in New Jersey.

 

Education

New Jersey Asks Court to Deny Appeal in School Segregation Case – On May 29th, the state attorneys filed a brief urging an appellate court to deny a request for review in a long-running school segregation lawsuit. The attorneys argued that the appeal is premature due to the limited trial record and the absence of a final ruling from the trial court. The state also criticized the plaintiffs for not presenting a vision of desegregation or proposing any practical solutions. The case, initially filed in 2018 by some advocacy organizations, alleges that state school districts are unconstitutionally segregated along racial and socioeconomic lines due to district boundaries aligned with municipal borders. In 2023, a judge acknowledged that racial imbalances exist within schools but ruled that plaintiffs failed to provide sufficient data to prove systematic and unconstitutional racial and ethnic segregation across the entire school system.