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TSTC Testimony: Distribution of American Rescue Plan Funding in New Jersey

Tri-State Transportation Campaign appreciates the administration’s effort to conduct outreach and receive public input on the state’s use of the American Rescue Plan funding. Thank you for the opportunity to provide written comments.

First, we urge a swift resolution regarding the federal American Rescue Plan funding dispute between New Jersey, New York, and Connecticut which is currently holding up the disbursement of funds. These funds must be disbursed as intended and in accordance with the funding formula agreed upon and utilized by the other 49 states. NY remains an unreasonable outlier in this respect. This dispute has made it impossible for NJ Transit to approve its FY22 operating budget and puts into question the availability of vital funding for an agency already running on a shoestring budget.

We understand and appreciate how critical the emergency federal funding is for all states, as no one was spared the impacts of COVID-19. Our federal delegation has fought hard for the proper funding to bring back to our state. NJ Transit’s riders, especially those who are transit-dependent, remain vulnerable to service cuts or fare increases as this dispute lingers. This past year has changed the way we live, work, and travel: while some have been able to adopt a remote work model, essential workers and transit-dependent residents continued to lean on NJ Transit to get to their jobs, stores, and essential health services. We must prioritize our residents who rely on public transportation, especially intracity bus riders, to ensure that their way of getting places is dependable and respectable.

Additionally, receiving this federal funding doesn’t absolve the state from funding transit–NJ Transit needs stable and dedicated revenue for operating so that it can meet its capital needs, especially those projects identified in the agency’s 5-year capital program. The influx of emergency federal funding solves our immediate challenges, but does not address the overall funding issues that have plagued the agency for decades. The most debilitating funding practice, the capital to operating transfers, must be ended.

Thank you for your time and consideration. I’m looking forward to working with NJ riders, NJ Transit and the Administration to make our public transit system, equitable, reliable, affordable, and resilient.

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