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7/17/2026
The New Jersey Transit board has adopted a $3.5 billion fiscal-year 2027 operating budget and approved FY27 capital funding of $1.7 billion for bus, heavy- and light-rail transportation services.
About 60% of the operating budget will go toward labor costs for NJ Transit's 12,900-employee workforce, according to an NJ Transit press release. Expenses including materials, fuel and power, utilities and outside services take about 22.8% of the budget, while contracted transportation services, such as Access Link, private carrier buses and Hudson-Bergen Light Rail operation and maintenance represent 9.5% of total operating costs.
Twenty-eight percent of the revenue in the FY27 operating budget comes from rider fares; the remaining amount comprises dedicated funding from the New Jersey Turnpike Authority of $485 million, $765.6 million from the corporate transit fee, and a combination of commercial revenue and state and federal resources.
The FY27 capital funding appropriation received $791.1 million from the Federal Transit Administration, $75 million in flexed funds from the Federal Highway Administration provided via the New Jersey Department of Transportation, $782 million from the New Jersey Transportation Trust Fund, and $84.5 million from casino revenue, local match and Turnpike Authority funds.
Additionally, the NJ Transit board approved funding for community transportation programs that help meet mobility needs not met by NJ Transit's operations. These programs include senior citizen and disabled resident transportation assistance, rural transportation access, training for small transit operators and commuter services that support employment opportunities.