Covering a service area of 5,325 square miles, NJT is the nation’s third largest provider of bus, commuter rail and light rail transit, linking major points in New Jersey, New York, and Philadelphia, Pa. (see rail system map above). The agency operates an active fleet of 2,221 buses, 1,231 railcars, and 93 LRVs. NJT—which on July 17 celebrated its 46th year of service—provides nearly 270 million passenger trips each year via 253 bus routes and 12 rail lines statewide.
For the FY26 operating budget, 31% of the revenue comes from rider fares, with the remainder from New Jersey Turnpike Authority dedicated funding, which is $470 million in FY26, $789 million from the corporate transit fee, and a combination of commercial revenue and state and federal resources, according to NJT.
Approximately 60% of the operating budget is said to be dedicated to costs associated with labor that supports a workforce of approximately 12,000 employees. Expenses including materials, fuel and power, utilities, and outside services represent 22% of total operating expenses. Contracted transportation services, such as Access Link, private carrier buses, and Hudson-Bergen Light Rail (HBLR) and River LINE operation and maintenance, represent 10.6% of total operating expenses.
The FY26 Capital Funding Appropriation totals $1.684 billion, which NJT said represents an expected funding source that will provide, along with other past and future annual appropriations, the funds needed to advance critical capital projects.
According to NJT, the Capital Funding Appropriation is funded from a number of sources: $768 million from the Federal Transit Administration (FTA); $75 million in flexed funds from the Federal Highway Administration (FHWA) provided through the New Jersey Department of Transportation (NJDOT); $767 million from the New Jersey Transportation Trust Fund (TTF); and $74 million of Casino Revenue, Local Match, and Turnpike Authority funds.
NJT noted that it partners with all 21 New Jersey counties to fund community transportation programs, as well as those offered by private non-profit organizations, counties, municipalities, and county improvement authorities, “in meeting the mobility needs of New Jerseyans who depend on public transportation.”
These programs include the following:
- $46.1 million from the New Jersey Casino Revenue Fund to operate the statewide Senior Citizen and Disabled Resident Transportation Assistance Program (SCDRTAP).
- $13.9 million for FTA Section 5310 “Enhanced Mobility of Seniors and Individuals with Disabilities” programs, which provide federal funds for operating expenses as well as the purchase of vehicles and related equipment by private, non-profit agencies, and designated public entities. This includes $2.8 million in state funding to support local matching fund requirements.
- $7.8 million for FTA Section 5311 “Formula Grants for Rural Areas” programs, which provide federal funds for capital, administrative, and operating assistance for public transportation services in and between small urban and rural areas of New Jersey. This includes $2 million in state funding to support local matching fund requirements.
- $175,240 in federal funding for the FTA Section 5311(b)(3) Rural Transit Assistance Program, which provides training and technical assistance for small transit operators receiving funding through NJT’s Local Programs.
- $1.02 million for FTA Section 5311 Rural Intercity Bus Transportation Program.
- $5.5 million for the New Jersey Jobs Access and Reverse Commute (NJ-JARC) Program under which counties and localities provide public transportation services to help residents obtain community transportation to employment opportunities.
- $6 million in other funds passed through to sub-recipients.
“Thanks to [New Jersey] Gov. [Phil] Murphy’s support, NJT has the funding it needs to maintain its critical transportation services,” NJDOT Commissioner and NJT Board Chair Fran O’Connor said. “These services drive the economy and promote sustainable transportation throughout the region.”
“Together, the operating and capital budgets allow us to deliver safe, reliable service today while investing in the infrastructure that will shape a better customer experience tomorrow,” NJT President and CEO Kris Kolluri said. “Every element of this funding supports our mission to make public transit more reliable, accessible, and responsive to the needs of our riders.”
Join Kris Kolluri at Railway Age’s Next-Gen Rail Systems conference (formerly Next-Gen Train Control) on Oct. 30-31 in Jersey City, N.J. He will be a featured speaker at the 30th annual conference, which has been expanded to encompass the entire system, examining how signaling and train control technologies are modified and improved by telematics, artificial intelligence, deep data analysis, cybersecurity measures, and more.
