Unpacking the NJ State FY26 Budget on New Jersey’s Kids and Families

The State Fiscal Year 2026 Budget was approved by the Legislature and signed into law by Governor Murphy before the June 30th deadline, with total appropriations of $58.8 billion and a projected surplus of $6.7 billion. The budget allocates resources, programs, and services that will benefit New Jersey residents in the upcoming year.

Advocates for Children of New Jersey (ACNJ) engaged throughout the process, advocating for critical investments that support children and families. Below are key highlights.

Child Care

• $565.8 million in the NJ Child Care Assistance Program to help low-income families cover the cost of child care for children ages 0 - 13.

Public Preschool Expansion

• $34.6 million in new funding to expand free, universal pre-K across New Jersey communities.
• $10 million specifically to help launch new preschool programs.

K-12 Education

• Fully funds New Jersey’s schools under the School Funding Reform Act (SFRA) for the second year in a row, with an additional $386 million in aid for FY 2026—the largest school aid contribution in state history.
• $3 million in incentive grants to help school districts transition to phone-free learning environments, supporting academic success and student well-being.
• $7.5 million in new grant funding for school districts to provide high-impact tutoring for students needing extra academic support.

Hunger and Food Insecurity

• $30 million to maintain a minimum monthly $95 in SNAP benefits for approximately 40,000 households.
• $85 million in aid for the state’s food banks and emergency feeding organizations.

Maternal Health

• $10 million to ensure State employees can take parental leave at full pay to care for a newborn.
• Nearly $36 million to expand Family Connects NJ, offering free home visitations for postpartum mothers and newborns.
• Over $50 million—the single largest investment in New Jersey history—for women’s health care programs beyond state-sponsored insurance. This will provide safety-net family planning services, upgrade family planning facilities, and grow the reproductive health care workforce.
• $5.2 million for the newly created Maternal and Infant Health Innovation Authority.

Child Health

• Continued funding for Cover All Kids and NJ FamilyCare, projected to provide free health insurance coverage to up to 867,000 children.

Mental Health

• Building a statewide system of mental health resources with $43 million for the NJ Statewide Student Support Services (NJ4S) Network.

Positive Youth Development and Other Supports

• Approximately $20 million to maintain the Alternative Responses to Reduce Instances of Violence and Escalation (ARRIVE) Together program, which pairs police officers with mental health professionals when responding to mental health crises.

ACNJ will continue to provide post-budget updates as additional information becomes available. Stay tuned!