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NJ A5623

NJ A5623
Authorizes NJ Infrastructure Bank to expend certain sums to make loans for transportation infrastructure projects for FY2026; makes appropriation.

summary

Introduced
05/08/2025
In Committee
06/19/2025
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill authorizes the New Jersey Infrastructure Bank (NJIB) to expend up to $53,450,000 in Fiscal Year 2026 (FY2026) to provide low-interest loans to certain local government units that undertake one of 17 eligible transportation infrastructure projects set forth in the bill. The bill also authorizes the NJIB to make a maximum of $1 million in principal-forgiveness financing loans to project sponsors for planning and design costs. Under the bill, up to $100,000 of a loan, per borrower, is to be forgiven for a project where a principal amount of at least $250,000 is financed by the Transportation Infrastructure Financing Program through completion of the project's construction. Additionally, the bill permits the NJIB to use any loan repayments received to date, and the amounts for capitalized interest, interest accrued pursuant to a short-term or temporary loan made to a project sponsor pursuant to the Interim Transportation Financing Program, bond issuance expenses, and related amounts, to fund the FY2026 New Jersey Transportation Infrastructure Financing Program (NJTIB). The bill also authorizes the NJIB to utilize certain funds generated by the operation of the bank, including, but not limited to, proceeds from the sale of bonds, the revenues derived from investments, and loan repayments, to defray the NJIB's FY2026 operating expenses. Finally, the bill appropriates certain funds from the General Fund to the NJIB. Since its creation in 2018, the NJIB, in partnership with the Department of Transportation, has provided low-cost NJTIB loans for the construction of critical transportation infrastructure projects with the mission of reducing the cost of financing for New Jersey counties and municipalities and making possible responsible and sustainable economic development.

AI Summary

This bill authorizes the New Jersey Infrastructure Bank (NJIB) to provide low-interest loans for transportation infrastructure projects in Fiscal Year 2026, with several key provisions. The bank is allowed to expend up to $53,450,000 to make loans to local government units for 17 specific transportation projects across various New Jersey municipalities, including road improvements, bridge repairs, and street redesigns. The bill permits the bank to offer up to $1 million in principal-forgiveness financing for planning and design costs, with up to $100,000 forgiven per borrower for projects financing at least $250,000 through completion. The legislation enables the NJIB to use various funding sources, including bond proceeds, investment revenues, and loan repayments, to cover its operating expenses and support the Transportation Infrastructure Financing Program. Loans made under this bill must be repaid within 31 years and are subject to specific conditions, such as project eligibility and compliance with existing regulations. The bill is part of the NJIB's ongoing mission to reduce financing costs for New Jersey counties and municipalities and support sustainable economic development through critical infrastructure investments. The authorization for these loans will expire on July 1, 2026.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (6)

Last Action

Substituted by S4377 (on 06/30/2025)
(1 Companion Bills)

bill text

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bill summary

Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/A5623
Analysis - Statement AAP 6/19/25 https://pub.njleg.gov/Bills/2024/A6000/5623_S2.PDF
BillText https://pub.njleg.gov/Bills/2024/A6000/5623_I1.HTM
Analysis - Statement ATR 5/8/25 https://pub.njleg.gov/Bills/2024/A6000/5623_S1.PDF
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