The NJ TRANSIT board adopted the agency’s Fiscal Year 2027 (FY 2027) operating budget, local programs budget, and authorized capital funding.

The budgets continue investments in infrastructure and equipment to maintain the system in a state of good repair and enhance the overall customer experience.

“We accomplished a lot in Fiscal Year 2026 by continuing historic investments in new rail cars and buses to modernize the aging fleet,” said NJ TRANSIT President/CEO Kris Kolluri. “Governor Sherrill’s unprecedented level of state funding support for FY27 will allow us to build on this progress by continuing to invest in our transit system to ensure more reliable, efficient, and modern transportation for our customers.”

The Board adopted a $3.5 billion operating budget and $1.7 billion in capital funding for FY 2027.

NJ TRANSIT’s FY 2027 Operating Budget

28% of revenue in the FY 2027 operating budget comes from customer fares.

The remaining amount comes from dedicated funding from the New Jersey Turnpike Authority ($485 million in FY 2027), the corporate transit fee ($765.6 million), and a combination of commercial revenue and state and federal resources.

Approximately 60% of the operating budget is dedicated to labor costs supporting a workforce of approximately 12,900 employees. Expenses, including materials, fuel and power, utilities, and outside services, represent 22.8% of total operating expenses.

Meanwhile, contracted transportation services, such as Access Link, private carrier buses, and Hudson-Bergen Light Rail (HBLR) operation and maintenance, represent 9.5% of total operating expenses.

FY 2027 Capital Funding Appropriation and Local Programs

This year’s Fiscal Year 2027 Capital Funding Appropriation totals $1.733 billion. It represents an expected funding source that, along with other past and future annual appropriations, will provide the funds needed to advance critical capital projects.

The Capital Funding Appropriation is funded from several sources: $791.1 million from the Federal Transit Administration (FTA), $75 million in flexed funds from the Federal Highway Administration (FHWA) provided through the New Jersey Department of Transportation (DOT), $782 million from the New Jersey Transportation Trust Fund (TTF), and $84.5 million of Casino Revenue, Local Match, and Turnpike Authority funds.

NJ TRANSIT partners with all 21 New Jersey counties to fund community transportation programs, as well as those offered by a variety of private non-profit organizations, counties, municipalities, and county improvement authorities, in meeting the mobility needs of New Jerseyans who depend on public transportation.