TRENTON, NJ, July 1, 2026—New Jersey Future today acknowledged the signing of New Jersey’s Fiscal Year 2027 State Budget, highlighting important progress in protecting public health while urging continued investment in housing, active transportation, and water infrastructure systems essential to creating healthy, resilient communities.

The budget includes several meaningful investments, including the state’s first-ever Drinking Water Filter Grant Program, but falls short of restoring funding for key transportation programs and does not fully address New Jersey’s growing water infrastructure needs, said Peter Kasabach, Executive Director.

First State Investment in Interim Lead Protection

New Jersey Future applauded the Legislature’s inclusion of $500,000 to establish the state’s first Drinking Water Filter Grant Program through the New Jersey Department of Environmental Protection.

The program will provide grants to distribute NSF/ANSI Standard 53-certified point-of-use drinking water filters to households with known or suspected elevated lead levels while lead service lines continue to be replaced.

New Jersey law requires all lead service lines to be replaced by 2031, but many residents remain exposed to lead due to implementation challenges, funding constraints, and barriers facing renters and lower-income households.

“There is no safe level of lead exposure,” said Deandrah Cameron, Lead in Drinking Water Policy Manager at New Jersey Future. “This funding creates an important bridge for families who cannot wait years for permanent infrastructure improvements. We look forward to working with DEP to ensure these resources reach the communities facing the greatest risks.”

Water Infrastructure Funding Remains a Long-Term Challenge

The Clean Water, Healthy Families, and Good Jobs campaign, which New Jersey Future chairs, also noted that while the budget increased state funding for the Drinking Water and Clean Water State Revolving Funds by approximately $5 million over the previous fiscal year, the investment remains well below what is needed to address New Jersey’s aging drinking water and wastewater infrastructure.

Over the next twenty years, New Jersey is projected to require approximately $77 billion in water infrastructure investment, roughly $3.8 billion annually, to maintain systems in a state of good repair.

The campaign emphasized that state investment will become even more important as federal funding provided through the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, nears the end of its authorization period. While the law delivered historic investments that accelerated lead service line replacement and other critical water infrastructure projects nationwide, those funding levels are not guaranteed beyond the current authorization period.

“Federal investments have helped communities make meaningful progress, but they have never covered the full scope of New Jersey’s infrastructure needs,” said Diane Schrauth, Clean Water, Healthy Families and Good Jobs campaign Chair. “As we approach the federal funding cliff, sustained state investment will be essential to protecting public health, maintaining affordability, and ensuring communities can continue modernizing critical water systems.”

Transportation Programs Continue at Reduced Funding Levels

New Jersey Future also expressed concern that the budget maintains the Governor’s proposal to eliminate the Department of Transportation’s Local Aid & Economic Development Grant line item. While the budget continues to provide $1 million each through the Transportation Trust Fund for the Bikeways, Safe Streets to Transit, and Transit Village programs, overall funding remains significantly below previous levels.

These programs help municipalities improve pedestrian and bicycle safety, strengthen transit access, and support compact, walkable, transit-oriented communities.

“We appreciate that these programs continue to receive funding, but the reduced level of dedicated investment will limit opportunities for communities working to improve safety and expand transportation choices,” said Zeke Weston, Policy Coordinator. “New Jersey Future remains committed to working with NJDOT, legislators, and local partners to prioritize funding opportunities that help communities build safer, healthier, and more connected neighborhoods.”

New Jersey Future will continue working with state leaders and partners to advance policies and investments that strengthen infrastructure, improve public health, expand transportation choice, and support equitable, sustainable communities across New Jersey.