NJDOT/NJ TRANSIT
Capital Program

The New Jersey Department of Transportation (NJDOT) and NJ TRANSIT prepare a Transportation Capital Program annually which lists all projects that can be funded from the Special Transportation Fund (more commonly known as the Transportation Trust Fund). This project list is submitted each year on March 1 to the Legislature for review and approval. The Legislature makes any necessary changes and provides its final decisions in the Appropriation Act which takes effect July 1 each year.

From FY 2012 through FY 2016, the State's Capital Program was supplemented with $1.8 billion from the Port Authority of New York and New Jersey (PANYNJ), primarily to reconstruct the Lincoln Tunnel Access Project (i.e. Pulaski Skyway and Wittpenn Bridge). The PANYNJ funding, outlined in a formal agreement between NJDOT and the PANYNJ, was provided to NJDOT on a reimbursement basis. Together, the TTF and PANYNJ supported the New Jersey Transportation Capital Plan authorizing a total of $1.6 billion in new projects each year, and that level of spending was also authorized in the FY 2017 Appropriations Act. A supplemental appropriation authorized a total FY 2017 TTF program of $2 billion.

The 2016 TTF Re-authorization provided a new "pay-as-you-go" funding source in support of statewide transportation capital projects with the establishment of the Transportation Trust Fund Sub-Account for Capital Reserves, funded from excess constitutionally dedicated Petroleum Products Gross Receipts tax revenues not needed to satisfy current year debt service obligations. It is anticipated that the Sub-Account for Capital Reserves will provide an estimated $1.3 billion in new "pay-as-you-go" funding thru fiscal year 2024.

The FY 2017, FY 2018, FY 2020, and FY22 appropriations authorized TTF programs of $2 billion annually. The FY 2019 appropriation authorized a TTF program of $2 billion, plus a supplemental appropriation of $50 million to NJ Transit for eligible Preventative Maintenance, Capital Maintenance, and Capital Program Implementation costs from revenues and other funds of the TTFA and from amounts on deposit in the TTF Subaccount for Capital Reserves. The FY 2021 Adjusted Appropriation authorized a TTF program of $2.6 billion, which includes an additional $600 million for the advancement of transportation projects statewide.

The respective TTF and PANYNJ portions of the programs are outlined below:

The October 14, 2016 revisions to the TTFA Act provided for $12 billion in total bonding authorization to finance transportation projects from FY 2017 through FY 2024. In addition, the TTFA issued $3.2 billion of Indirect GARVEE Notes (see GARVEE section of this website) on October 26, 2016. Those resources were sufficient to pay project expenses in FY 2017, FY 2018, and a portion of FY 2019.

Capital resources from the TTF that are made available in the Special Transportation Fund are allocated to various NJDOT, NJ Transit, and Local Aid projects.

Capital Program History

A review of the NJDOT/NJ TRANSIT Capital Program Appropriation History shows how funds have been distributed between NJDOT, NJ TRANSIT, and Local Aid since 1985 and reveals that the annual program has increased from only $249 million at the inception of the Trust Fund to $2.0 billion currently.

NJDOT and NJ TRANSIT must also prepare a State Transportation Improvement Program (STIP) each year for approval by the three Federal Metropolitan Planning Organizations (MPOs) that cover the State of New Jersey. The STIP provides a list of all federal and state funded projects planned for the next three FYs within expected Federal and State resource levels.

The MPOs must specifically approve projects programmed for Federal funds in order for the projects to be authorized for advancement by the Federal Highway Administration.

The TTF’s annual spending authorization (e.g., $2 billion in FY 2022) that supports NJDOT, NJ TRANSIT, and Local Aid projects is separate and distinct from the Legislature's appropriation of transportation revenues (e.g., motor fuels tax, good driver surcharges, etc.) to the Transportation Trust Fund Authority. The annual spending authorization enables NJDOT and NJ TRANSIT to issue contracts and purchase orders for projects. The revenue appropriation to the Authority is the funding source for debt service payments and pay-as-you-go appropriations.

As invoices are submitted, the Authority pays project vendors from its appropriations and bond proceeds. Since most major projects take several years to complete, the Authority must translate the contract values reflected in the capital project lists to actual cash flow payments to the vendors.

NJDOT/NJ TRANSIT Capital Program
Appropriation History

*From FY2012 through 2016, NJDOT’s capital plan also included $1.8 billion in resources from the Port Authority of New York and New Jersey for the Lincoln Tunnel Access Projects (i.e., Pulaski Skyway.)

(a) October 2016 Reauthorization $1.6B plus $400M supplemental appropriation.

(b) FY 2019 Capital Appropriation of $2 billion plus $50 million supplemental appropriation for New Jersey Transit

(c) The FY 2021 Adjusted Appropriation includes an additional $600 million for the advancement of Department of Transportation projects.