The Garden State Initiative (GSI) released a new report, “NJ Transit: An Economic Analysis of Reliability, Funding, and Reform,” which found that while Amtrak-owned infrastructure contributes to service disruptions, New Jersey’s commuter rail system also faces significant internal operational and fleet management challenges that cannot be solved through additional funding alone.

Authored by GSI Contributor and  Seton Hall Associate Professor of Economics Danielle Zanzalari, the report analyzes NJ Transit performance data from 2020 through 2024. It concludes that the agency’s declining mechanical reliability has continued despite substantial increases in operating funding.

During the study period, NJ Transit’s operating budget grew by roughly 20%, and the recently adopted FY2027 budget reaches a record $3.5 billion — 46% higher than in 2020. Yet, mechanical reliability declined significantly over the same period.

“Public discussion often centers on Amtrak, and our research confirms that Amtrak-related disruptions certainly impact on-time performance,” said Zanzalari, author of the report. “But the data also show that NJ Transit faces a separate mechanical reliability challenge that cannot be explained by Amtrak alone. If New Jersey wants a more reliable transit system, policymakers should pair continued infrastructure investment with stronger operational management, better asset planning, and clear performance measures.”

Key Findings of the Report

Using original empirical analysis, the report identifies four major findings:

• Amtrak is part of the problem — but not the entire problem.
• Higher spending has not, by itself, produced more reliable service.
• Reliability depends on how transportation resources are managed, not simply how much is spent.
• New Jersey should adopt a more performance-based approach to transit investment and accountability.

Rather than recommending across-the-board spending increases, the report highlights reforms implemented by transit agencies in Boston, Virginia, and New York that prioritize preventive maintenance, objective performance metrics, and strategic asset management to improve reliability.

“Reliable public transportation is essential to New Jersey’s economy, and commuters deserve a system they can depend on,” said Audrey Lane, president of the Garden State Initiative. “This report demonstrates that improving reliability isn’t simply a question of spending more money. It requires directing investments where they will have the greatest impact, measuring results, and holding the system accountable for delivering dependable service to riders.”

The report concludes that New Jersey should distinguish between infrastructure challenges that require continued coordination with Amtrak and operational issues that fall within NJ Transit’s control. Doing so would let policymakers target investments more effectively while improving accountability for measurable reliability improvements.

The Garden State Initiative

GSI is an independent, nonpartisan 501(c)(3) research and educational organization dedicated to promoting a prosperous New Jersey through sound public policy.

The organization develops data-driven research and practical policy solutions that advance affordability, economic opportunity, and long-term fiscal sustainability for all New Jerseyans.