ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4377

STATE OF NEW JERSEY

DATED:  JUNE 19, 2025

      The Assembly Appropriations Committee reports favorably Senate Bill No. 4377.

As reported, this bill authorizes the New Jersey Infrastructure Bank (NJIB) to expend up to $53,450,000 in Fiscal Year 2026 (FY 2026) 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 New Jersey 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 FY 2026 New Jersey Transportation Infrastructure Financing Program.  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 FY 2026 operating expenses.  Finally, the bill appropriates certain funds from the General Fund to the NJIB.

      As reported by the committee, Senate Bill No. 4377 is identical to Assembly Bill No. 5623, which was also reported by the committee on this date.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.