When Governor Murphy signed the Corporate Transit Fee into law last year, it was pitched as a bold investment in New Jersey’s future. The message was clear: our largest, most profitable corporations would pay more to fund critical upgrades to NJ Transit — fixing tracks, modernizing stations, improving reliability, and keeping fares affordable for riders.
The business community vehemently opposed the Corporate Transit Fee as a tax that would make New Jersey economically less competitive. The positive aspect was that the money collected was supposed to be used to directly bolster our transit system – and New Jersey needs a world-class transit system to support our economy and our workforce. This is something the New Jersey Chamber of Commerce has long advocated for. However, what we did not sign up for was a massive portion of that $1 billion annual tax going towards a pay raise that would cost NJ Transit and taxpayers $1.36 billion over the next five years.
If approved, this could lead to a 27% increase to the Corporate Transit Fee, 17% fare hike for commuters, or sweeping cuts to service across the state. And in this economy, those options aren’t just bad policy — they’re dangerous. New Jersey businesses are already facing high operating costs, labor shortages, and uncertainty in the broader market.
Hiking the Corporate Transit Fee is simply not an option. It discourages growth and investment. At the same time, raising fares on working families — many of whom are already struggling with inflation and housing costs — would push people off the trains and deepen inequality.
Worse still, if service is interrupted, the impact will be immediate and devastating to our economy. Over 350,000 daily commuters and riders would be impacted. Bus and light rail systems don’t have the capacity to absorb the overflow. Traffic congestion would surge. Working families would suffer. Businesses would take a hit. And the state would bleed $4 million a day just to provide limited alternative service. Longer-term, this disruption could impact our planning for FIFA World Cup 26, which jeopardizes the $2 billion economic boost New Jersey business and residents should potentially realize.
This is not about denying workers fair compensation. It’s about balance, sustainability, and honoring the commitment made when the Corporate Transit Fee was created. That revenue must go toward rebuilding the system and nothing else.
– Tom Bracken, President & CEO, New Jersey Chamber of Commerce