LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3387
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 9, 2026
SUMMARY
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Synopsis: |
Permits member of New Jersey National Guard to transfer 50 percent of certain tuition benefit to dependent child or 100 percent of certain tuition benefit to spouse. |
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Type of Impact: |
Annual revenue reduction to public institutions of higher education. Potential State expenditure increase; potential revenue increase to public institutions of higher education. |
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Agencies Affected: |
Public institutions of higher education. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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Revenue Decrease for Public Institutions of Higher Education |
Up to $4.5 million |
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Potential State Expenditure Increase |
Up to $4.5 million |
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Potential Revenue Increase for Public Institutions of Higher Education |
Up to $4.5 million |
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· The Office of Legislative Services (OLS) concludes that this bill may result in a revenue loss to public institutions of higher education in the State stemming from the bill’s expansion of the New Jersey National Guard tuition benefit eligibility to qualifying spouses and dependent children, to the extent that the expanded eligibility results in increased participation in the program. Based on the enactment of a substantially similar law in Michigan in 2023, the OLS estimates that the annual revenue loss to public institutions of higher education would be no more than $4.5 million.
· To the extent that the State appropriates additional funds to cover the program expansion provided by the bill, the public institutions of higher education may experience an offsetting revenue increase.
BILL DESCRIPTION
This bill permits a member of the New Jersey National Guard to transfer certain tuition benefits to the member’s spouse or child.
Under current law, members of the New Jersey National Guard meeting certain criteria are eligible to receive up to 16 credits per semester tuition-free, after application of all other available forms of student financial aid and federal tuition benefits available through the United States Department of Veterans Affairs.
The bill permits any member of the New Jersey National Guard, who is eligible for the tuition benefit available under current law, to transfer the benefit to a spouse or dependent child. Under the bill, a spouse receiving a transferred tuition benefit is eligible to receive up to 16 credits per semester tuition-free at a public institution of higher education. Meanwhile, a dependent child receiving a transferred tuition benefit is eligible to receive up to eight credits per semester tuition-free.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that this bill may result in a revenue loss to public institutions of higher education in the State stemming from the bill’s expansion of the New Jersey National Guard tuition benefit eligibility to qualifying spouses and dependent children. The OLS notes that the bill appears to allow for the transfer of benefits from active members of the New Jersey National Guard to eligible spouses or dependents, rather than increasing benefits coverage to active members, spouses, and dependents. Consequently, any fiscal impact of the bill would be to the extent that the transfer of benefits results in increased participation in the program.
The OLS estimates that the annual revenue loss to public institutions of higher education would be no more than $4.5 million. While the OLS does not have access to sufficient information to accurately project the number of spouses and dependent children who would take advantage of the bill’s tuition benefits, the estimate is based on the projected costs associated with similar legislation enacted in Michigan. In 2023, that state enacted a law that extended its National Guard Tuition Assistance Program to allow a spouse or other specified dependent to use 100 percent of the National Guard member’s tuition benefit. The estimated costs associated with Michigan’s program expansion was $5.0 million, according to that state’s Department of Military and Veterans Affairs.
The OLS notes that Michigan appears to be a generally reasonable comparison point for New Jersey. According to statistics concerning the number of military and civilian personnel published by the Defense Manpower Data Center in December 2025, New Jersey had a total of 8,810 members in the Army National Guard and Air National Guard, while Michigan had a total of 9,968 members. Given New Jersey’s lower number of National Guard members and the fact that this bill provides a reduced tuition benefit for dependent children, the OLS adjusts Michigan’s $5.0 million estimate downwards to $4.5 million.
To the extent that the State appropriates additional funds to cover the program expansion provided by the bill, the public institutions of higher education may experience an offsetting revenue increase.
While the bill requires the State to reimburse public institutions of higher education for the covered tuition costs of eligible dependents and spouses, enactment of the bill may not necessarily lead to increases in State expenditures. State costs would only increase to the extent that additional funds are appropriated for institutional or operational costs support to the four-year public institutions of higher education and the county colleges. The OLS notes that recurring budget language requires public institutions of higher education to use a portion of State funds generally allocated for institutional or operational costs support, to provide reimbursement to cover tuition costs of New Jersey National Guard members under current law.
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Section: |
Education |
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Analyst: |
Section Chief |
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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.).