SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
[Second Reprint]
ASSEMBLY, No. 5712
with committee amendments
STATE OF NEW JERSEY
DATED: DECEMBER 15, 2025
The Senate Budget and Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 5712 (2R).
As amended, this bill establishes the Air Traffic Controller Loan Redemption Program in the Higher Education Student Assistance Authority (HESAA) and a program in the Office of the Secretary of Higher Education to provide grants to public institutions of higher education for certain aviation and aircraft control related initiatives.
The bill establishes the Air Traffic Controller Loan Redemption Program. The program would provide for the redemption of a portion of the qualifying student loan amounts of a program participant for each period of service at an approved site, which is defined as an airport located within the State or operated by a multi-state agency serving the State or a Terminal Radar Approach Control, Air Route Control Center, or any other similar Federal Aviation Administration facility serving an airport located within the State or operated by a multi-state agency serving the State. The bill provides a $1 million supplemental appropriation for the loan redemption program, of which no more than five percent may be used by HESAA for administrative costs. To be eligible to participate in the program, an applicant is required to: be a resident of the State; and be employed as an air traffic controller at an approved site.
Under the program, the redemption of qualifying student loan amounts would amount to 16 percent of the program participant’s qualifying student loan amounts in return for one full year of service at an approved site, up to $16,000, an additional 26 percent for a second full year of service, up to $26,000, an additional 28 percent for a third full year of service, up to $28,000, and an additional 30 percent for a fourth full year of service, up to $30,000. The total amount of loan redemption under the program is not to exceed $100,000.
The bill also establishes a program in the Office of the Secretary of Higher Education, in consultation with the Department of Labor and Workforce Development and any other State agencies as deemed appropriate by the secretary, to provide grants to public institutions of higher education to: support an institution of higher education’s participation in the federal Unmanned Aircraft Systems Collegiate Training Initiative; support the establishment of a Center for the Study of Unidentified Aerial Phenomena; facilitate the establishment of non-engineering aviation degrees that include instruction in air traffic control and aviation administration; and encourage an institution of higher education to join the Federal Aviation Administration’s Air Traffic-Collegiate Training Initiatives Program.
A public institution of higher education seeking to participate in the program is required to submit an application to the secretary in a form and manner prescribed by the secretary. The application would include confirmation of the institution’s participation in, or planned participation in, the federal Unmanned Aircraft Systems Collegiate Training Initiative; the institution’s capacity to support a Center for the Study of Unidentified Aerial Phenomena; whether the institution offers non-engineering aviation degrees that include instruction in air traffic control and aviation administration, or has any plans to establish these degree programs; whether the institution participates in, or plans to participate in, the federal Aviation Administration’s Air Traffic-Collegiate Training Initiatives Program; and any other information the secretary deems necessary. After reviewing applications, the secretary would select one or more public institutions of higher education to participate in the program. The secretary is required to give preference to an institution of higher education located in a county of the first class. The bill provides a $2.5 million appropriation for the grant program.
As amended and reported by the committee, Assembly Bill No. 5712 (2R) is identical to Senate Bill No. 4432 (1R), which was also amended and reported by the committee on this date.
COMMITTEE AMENDMENTS:
The committee amended the bill to expand the definition of approved site to include a Terminal Radar Approach Control, Air Route Control Center, or any other similar Federal Aviation Administration facility serving an airport located within the State or operated by a multi-state agency serving the State.
FISCAL IMPACT:
The Office of Legislative Services concludes that this bill will result in a cost increase of up to $3.5 million in the first year of implementation due to the bill’s appropriation of $1.0 million for the Air Traffic Controller Loan Redemption Program and $2.5 million for an aviation grants program in the Office of the Secretary of Higher Education. If the full $3.5 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $3.5 million is exhausted.
According to information from the Federal Aviation Administration, there are three public institutions of higher education in New Jersey meeting the eligibility criteria for aviation grants established by the bill, namely: Atlantic Cape Community College; Warren Community College; and Kean University.