May 19, 2025

Regulations Introduced to Protect New Jerseyans from Rising Utility Costs – NJ State Policy Updates

Education

Federal Mental Health Grant Cuts Threaten NJ School Services – Recent federal cuts of nearly $1 billion nationwide in school-based mental health grants will force New Jersey to prematurely end a statewide initiative focused on expanding access to mental health professionals in schools. The five-year, $15 million program provided services to over 40,000 students and hired 68 new school-based mental health professionals over the last two school years. Governor Murphy criticized the decision as extremely disappointing, particularly amid rising youth mental health challenges.

Public Administration

New Regulations Introduced to Protect New Jerseyans from Rising Electric Costs – On May 14, Governor Murphy signed several executive orders to help residents cope with an upcoming increase in electric rates. The measures include urging utility companies to extend shutoff protections into the summer months, suspend reconnection fees after peak summer usage, and explore funding options to stabilize utility bills. One utility, JCP&L, has already committed to expanding its program to prevent service disconnections. Additionally, the state will expedite new solar power development and accelerate the review of energy generation proposals. These actions follow a recent state law requiring utilities to notify customers about increases in daily energy usage.

Transportation

NJ Transit Rail Strike Ends with Tentative Wage Deal – On May 18th, Governor Murphy and NJ Transit CEO Kris Kolluri announced that NJ Transit and the Brotherhood of Locomotive Engineers and Trainmen reached a tentative agreement, ending a three-day rail strike that disrupted rail service. Murphy and Kolluri declined to divulge specific details, but said the agreement was beneficial and fair to union workers, NJ Transit riders, and the greater public. The agreement must still be ratified by the union’s 450 members and NJ Transit’s board, with a vote set for June 11. Unlike most major U.S. transit systems, NJ Transit lacks a dedicated funding source and instead relies on a combination of state subsidies and rising rider fares, which increased 15% in July 2024 and are slated to increase another 3% this year.