Economics
Unemployment Insurance Tax Rates to Drop for Businesses Starting July – Beginning July 1, unemployment insurance tax rates will decrease from a range of 0.6%-6.4% to 0.5%-5.8%. The change is expected to save businesses across the state about $300 million annually. The reduction reflects the state’s economic recovery following the COVID-19 pandemic. The pandemic led to a surge in unemployment claims and a depletion of the Unemployment Insurance Trust Fund, which caused these rates to increase. Business organizations, such as the New Jersey Chamber of Commerce and the New Jersey Business and Industry Association, welcomed the relief, stating that businesses will be able to increase investment in their operations, workforce, and communities. However, they cautioned against offsetting the reduced rates by increasing other business taxes in the upcoming fiscal year.
Education
Assembly Committee Advances Bill Addressing Chronic Absenteeism – On June 16th, the Assembly Education Committee unanimously voted to advance Bill A5779, which would establish a 20-member state task force to address chronic absenteeism in schools. The task force would analyze the root causes of absenteeism, examine the impacts of mental health, school climate, and the COVID-19 pandemic, review best practices from other states, and develop actionable recommendations for school districts. Chronic absenteeism, defined as missing 10% or more of the 180-day academic year, is linked to lower academic achievement and higher dropout rates. During the 2023-24 academic year, 15% of students statewide were chronically absent, compared to under 11% in 2018-2019, before the pandemic. The bill received approval in the Senate earlier this month.
Bill Aimed at Improving Out-of-School-Time Programs Advances – On June 16th, the Assembly Education Committee unanimously voted to advance Bill A2414, which would establish an advisory council to evaluate and enhance before-school, after-school, and summer programs. The council would assess the effectiveness of current out-of-school-time programs, review relevant research and best practices, and issue a final report with findings and recommendations within two years, among other responsibilities. Supporters of the bill emphasize its potential to improve student engagement, improve academic outcomes, and support families in need of childcare options.
Health
Assembly Committee Advances Bill to Ban AI Use in Therapy – On June 16th, the Assembly Science, Innovation and Technology Committee unanimously voted to advance Bill A5603, which would prohibit individuals and companies from using or marketing artificial intelligence (AI) systems as licensed mental health professionals. Violators could face fines of up to $20,000 per offense. This measure comes amid rising concerns over the use of AI for mental health advice and treatment. While research suggests AI therapy chatbots can improve access to mental health support, the study also finds that they are less effective than human therapists and demonstrate greater stigmatization of conditions like alcoholism and schizophrenia compared to depression.
State Issues New Strategic Plan on Opioid Settlement Funds – On June 12th, the New Jersey Opioid Recovery and Remediation Advisory Council released new guidance on how communities should allocate over $1 billion in national opioid settlement funds over the next five years. The guidance prioritizes investments in harm reduction services, addiction treatment, and social services such as housing support. The plan aims to reduce overdose deaths and promote “data-driven and equity-focused” spending and accountability. This plan follows an ongoing court battle over alleged misuse of opioid settlement spending in Irvington. Overdose deaths in the state peaked at 3,171 in 2022 but declined to about 2,800 in 2023 and fewer than 2,000 in 2024. Health officials attribute the decline to harm reduction efforts.
Bill Advances to Allow Suicide Hotline Follow-Ups for At-Risk Youth – On June 9th, the Senate Health, Human Services, and Senior Citizens Committee unanimously voted to advance Bill S4050, which would allow mental health resource and suicide prevention hotline operators to make follow-up calls and text messages to adolescents at risk of suicide without requiring parental consent. Under current New Jersey law, minors 16 years or older can consent to certain services, but are not explicitly permitted to receive follow-up communication from suicide prevention hotlines even if identified as “high-risk.” Supporters argued the bill would expand access to lifesaving support for teens and young adults, who may be unwilling or unable to confide in parents or guardians. Some advocates, such as the New Jersey Family Policy Center, expressed concerns that excluding parents from the process could increase risks. They urged lawmakers to amend the bill to include parental notification requirements. Suicide remains the second-leading cause of death among young people in the state. In 2024, 54 individuals aged 15 to 24 died by suicide, down from 79 the year before.
Public Administration
State Utilities Agree to Postpone Part of Summer Electric Bills – On June 18th, the state Board of Public Utilities approved a plan to ease consumer burdens amid rising energy costs by deferring $30 from electricity bills in July and August. Customers will repay the deferred amount in $10 monthly installments from September through February. New Jersey’s electric utilities also agreed to provide additional credits for low-income customers, extend shut-off protections, and waive reconnection fees. While Governor Phil Murphy praised the plan for alleviating consumer costs, Republican lawmakers criticized the measure for failing to address the root cause – the state’s limited power supply. Earlier this month, Murphy announced a separate relief plan for rising electricity rates, although details remain unclear.
Assembly Committee Advances State Voting Rights Bill – On June 12th, the Assembly Oversight, Reform, and Federal Relations Committee voted 4-1 to advance Bill A4083, serving as a state-level counterpart to the federal Voting Rights Act. The bill would create a new independent office within the Treasury to oversee elections and voting rights for racial and language minorities. It would also establish preclearance rules for jurisdictions with histories of voter suppression, expand language-access requirements for election materials, and increase state court authority to modify election rules that violate the bill’s provisions. Courts would also be permitted to redraw voting districts, reschedule election dates, and expand governing bodies when appropriate. Voting and civil rights groups, including the League of Women Voters of New Jersey and the New Jersey Alliance for Immigrant Justice, supported the measure, arguing it would strengthen voting rights in the state amid recent interventions from the federal government. Opponents, including the New Jersey Association of Election Officials and some county election officials, questioned the bill’s necessity and raised concerns about granting too much power to the courts at the expense of election administrators and the Legislature.
Lawmakers Advance Bills to Address Rising Energy Costs – On June 12th, multiple Assembly and Senate committees advanced a series of energy-related bills to address rising utility costs, expand clean energy, and prepare for new energy demands. Among the measures, lawmakers advanced bipartisan legislation to create a Nuclear Power Advisory Commission and a resolution urging federal regulators to reject recent electricity auction results that have driven up consumer electric bills. Additional bills would revise the state’s community solar program by raising capacity limits and development goals, establish regulations for large-scale data centers to limit consumer cost impacts, and require the Board of Public Utilities (BPU) to approve a wave and tidal energy pilot program and submit strategic reports outlining future ocean energy potential and generation goals.
Other measures included requiring transparency on public utility voting records at PJM meetings, mandating utilities redistribute excess profits to consumers, and updating consumer notification requirements for excessive utility usage. These measures come as the state faces growing concerns over energy affordability amid rising consumption, higher utility costs, and the potential loss of federal tax incentives for renewable energy.