Last week, Tim Sullivan, CEO of the New Jersey Economic Development Authority (NJEDA), and Christine Guhl-Sadovy, president of the New Jersey Board of Public Utilities (BPU), presented their fiscal year (FY) 2026 budget proposals to the New Jersey Legislature. Their testimonies highlighted the ongoing efforts to support economic development, innovation, and clean energy initiatives throughout the state.
NJEDA: Innovation and Economic Growth
In FY 2025, the NJEDA received more than $250 million in state appropriations to support programs aimed at advancing New Jersey’s economy. Building on last year’s momentum, the NJEDA continues to invest in key growth sectors, such as film and digital media, artificial intelligence, clean energy, pharmaceuticals, life sciences, and financial technology. Sullivan identified six strategic priorities for the Authority, including bolstering the state’s innovation economy, promoting economic security, and fostering sectoral diversification.
Strategic Innovation Centers
A central element of the NJEDA’s innovation agenda is the expansion of Strategic Innovation Centers, with over $110 million committed to transformative projects statewide. These centers aim to catalyze high-growth sectors and anchor long-term economic development. Notable initiatives include:
- HAX in Newark
- HELIX in New Brunswick
- SciTech Scity’s Edge Works in Jersey City
- Princeton AI Hub, a Microsoft and CoreWeave AI collaboration
- NJ FAST Fintech Accelerator at Stevens Institute of Technology
- Aerospace Innovation Center in Atlantic County
- NJII Venture Studio in Newark
Aspire Program
From commercial and residential real estate projects, to transformative studio production campuses, the Aspire Program has supported dozens of significant projects across the state in recent years. The program focuses on large-scale real estate projects that would not proceed without state assistance. Earlier this year, Governor Phil Murphy expanded the program, emphasizing the administration’s commitment to moving redevelopment projects forward. The changes increased the per-project award amounts for certain municipalities (Camden, East Orange, New Brunswick, Atlantic City, Paterson, and Trenton) and allowed tax credit purchasers to carry forward tax credits for up to five years. Since then, legislation has been introduced and reported favorably from committee that would require the buyback of unused tax credits awarded under the Aspire Program in an amount equal to 85% of the value of the tax credit under certain conditions. This bill awaits a full vote before the senate and assembly.
Clean Energy Investments
The NJEDA is also advancing clean energy initiatives through several financing programs:
- New Jersey Green Bank—secured $191 million in initial capital from state, federal, and New Jersey’s Regional Greenhouse Gas Initiative sources
- Garden State C-PACE program—unlocked private capital for building decarbonization
- Solar access loans—$10.5 million issued to broaden access to renewable energy
- NJ Cool Program—expanded to support industrial and institutional energy efficiency upgrades
Wind Port Project
The offshore wind sector in New Jersey faces significant challenges due to federal policy shifts and corporate pullbacks. The New Jersey Wind Port project was originally projected to support 11 gigawatts of capacity over 20 years. The project’s recent pause marks a challenge for the sector and casts slight uncertainty on the future of the industry. Although the state remains committed to its 11,000-megawatt offshore wind goal by 2040, recent executive orders by President Trump halting new offshore wind leases and permits led the BPU to suspend the latest round of offshore wind project solicitations.
Solar Milestone and Utility Cost Concerns
New Jersey has surpassed 5 gigawatts of installed solar capacity—more than doubling capacity since 2017. An additional gigawatt is in the pipeline. This expansion has generated tangible benefits, including lower electricity bills for many residential and community solar participants.
However, legislators and consumers have voiced concerns over rising energy utility prices. Lawmakers and advocates urged the BPU to increase oversight and transparency in utility rate-setting to protect ratepayers and households across New Jersey. The PJM Interconnection, which serves New Jersey and 12 other states, is struggling to keep pace with rising electricity demand and has more than 3,000 proposed energy projects in the queue. This backlog is contributing to supply shortages and driving record-high capacity auction prices—roughly 10 times higher than last year—resulting in increased electricity bills for consumers.
Broadband Expansion
In a major step toward digital equity, the BPU is supporting critical broadband expansion efforts across the state through the federal Broadband Equity, Access, and Deployment (BEAD) Program and the NJ Broadband Infrastructure Deployment Equity (NJBIDE) Pilot Program. Both initiatives aim to provide affordable, universal access to reliable broadband services.
Earlier this year, the United States Department of Commerce announced it was launching a review of BEAD. According to the release, the Trump administration intends to revamp BEAD to adopt a tech-neutral, outcome-driven approach. The federal government is also exploring ways to accelerate broadband infrastructure construction. According to the BPU, New Jersey is currently awaiting a final determination from the National Telecommunications and Information Administration (NTIA) on its BEAD challenge process. At this time, the NTIA has not provided a definitive timeline for when its review will be completed or when a final approval decision can be expected. The state’s initial BEAD proposal was approved by the NTIA last month; however, submission of the final proposal is expected later in 2025.
The BPU assured legislators that the ongoing federal review of New Jersey’s BEAD program has not directly delayed or halted the NJBIDE Pilot Program. While the two are conceptually linked, with NJBIDE designed to inform BEAD implementation, last month the BPU announced five NJBIDE grant awardees that will receive accelerated broadband connectivity investment. $10 million remains in program funding, with no publicly announced plan from the BPU on specific allocations.
For more information or questions about these developments, please contact our McCarter & English Government Affairs team.