State & Local News
NJ Assembly Urges Transit Fee Repeal
March 12, 2026
Assemblymen Christopher DePhillips and Brian Rumpf have formally called on New Jersey Governor Mikie Sherrill to repeal the state's 2.5% corporate transit fee, which contributes to New Jersey's highest-in-the-nation 11.5% corporate tax rate. They argue this fee is driving businesses out of the state and increasing unemployment. The legislators also demand a comprehensive audit and restructuring of New Jersey Transit before any further fare increases are imposed on businesses or riders. This development signals potential shifts in state transit funding and taxation policies that procurement professionals and contractors should monitor closely.
- Why this matters: Changes to the corporate transit fee and NJ Transitโs financial management could impact state contracts, funding allocations, and procurement priorities.
- Procurement officials should anticipate possible restructuring of NJ Transit contracts and budget adjustments following any audit outcomes.
- Businesses and contractors operating in New Jersey may see changes in tax liabilities and transit-related costs affecting operational expenses.
- Organizations involved in transit services or infrastructure should evaluate how potential policy shifts might influence upcoming procurement opportunities or contract terms.
New Jersey Transit does not need more money extracted from businesses or riders who have no control over its budget, its operations, or its service levels. What the agency needs is accountability.
— Christopher DePhillips
Every dollar we tax out of a business is a dollar that isn t going into a paycheck, an expansion, or a job.
— Brian Rumpf
Agencies
New Jersey Transit, New Jersey Legislative Assembly, State of New Jersey