LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 1839

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 16, 2026

 

 

SUMMARY

 

Synopsis:

Establishes "New Jersey Gold Star Family Annuity Program."

Type of Impact:

Annual State expenditure increase; potential State revenue increase.

Agencies Affected:

Department of Veterans Affairs.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1

Year 2

Year 3 & Thereafter

State Expenditure Increase

Up to $4.2 million

Up to $4.2 million

Up to $4.3 million

Potential State Revenue Increase

 

Indeterminate

 

 

·       The Office of Legislative Services (OLS) concludes that establishing a New Jersey Gold Star Family Annuity Program in the Department of Veterans Affairs to provide an annual annuity to a surviving Gold Star family member of a member of the United States Armed Forces or National Guard who died on active duty may increase annual State expenditures by up to $4.2 million in the program’s first and second years. 

·       The OLS anticipates a State expenditure increase of up to $4.3 million in the third year, given the average increase in federal compensation and pension benefits.

·       State revenues may also increase by an indeterminate amount for the duration of the program, as the bill permits the department to accept donations or grants for the purpose of disbursing annuity payments to beneficiaries.

 

BILL DESCRIPTION

 

      This bill establishes the New Jersey Gold Star Family Annuity Program in the Department of Veterans Affairs to provide an annual annuity to a surviving Gold Star family member of a member of the United States Armed Forces or National Guard who died on active duty.

      The bill defines a Gold Star family member as an individual who is a New Jersey resident and is the surviving spouse, domestic partner, partner in a civil union, parent, brother, sister, child, legal guardian, or other legal custodian, whether of the whole blood or the half blood, or by adoption, of a member of the Armed Forces of the United States or the National Guard who died while on active duty for the United States.

      Under the bill, the annuity will be paid January 1 of each year in the amount of $600.  Starting two years after the bill’s effective date, the amount of the annual annuity may be increased by an amount equal to the increase in compensation and pension benefits administered by the United States Department of Veterans Affairs in the previous year, provided that any such adjustment may not be less than one percent nor more than four percent.

      The bill requires program applicants to submit applications for annuity benefits to the department.  Any complete application is required to demonstrate the applicant’s relationship to the deceased service member, confirm that the deceased service member died while on active duty for the United States, and provide proof of New Jersey residency.

      The bill limits the payment of the annuity to State residents and requires applicants to provide proof of residency to the department annually.

      The bill provides that the department may accept donations or grants for the purpose of disbursing annuity payments to beneficiaries.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that establishing a New Jersey Gold Star Family Annuity Program in the Department of Veterans Affairs to provide an annual annuity to a surviving Gold Star family member of a member of the United States Armed Forces or National Guard who died on active duty may increase annual State expenditures by up to $4.2 million in the program’s first and second years, based on the $600 annuity specified in the bill and the estimated number of Gold Star family members in New Jersey. 

      The OLS anticipates a State expenditure increase of up to $4.3 million in the third year, given the average increase in federal compensation and pension benefits.     

      If the number of Gold Star family members approved for the program changes, the cost increase to the State will also change.

      State revenues may also increase by an indeterminate amount for the duration of the program as the bill permits the department to accept donations or grants for the purpose of disbursing annuity payments to beneficiaries.

 

Section:

State Government

Analyst:

Anna Harris

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).