Yesterday, Governor Phil Murphy delivered his annual State of the State Address, outlining an ambitious agenda aimed at securing economic opportunity and strengthening New Jersey’s future.
Murphy is in his final year of office after serving two consecutive terms. The Governor expressed confidence in New Jersey’s path forward while acknowledging the challenges of transitioning to a new federal administration, stressing that his administration will not waver from its core values.
Here are some key takeaways from the 2025 State of the State Address:
Economic Security and Opportunity
Governor Murphy stated that the top priority remains economic security for all New Jerseyans. He highlighted his administration’s progress in raising wages, with the state’s minimum wage nearly doubling since he took office. He also unveiled the Retire Ready NJ initiative, a public investment program aimed at supporting working families. Additionally, the Governor reiterated his commitment to lowering property taxes, stating that his administration and the Legislature have worked collaboratively to offer historic relief.
Education and Youth Mental Health
The Governor placed a strong emphasis on public education, reaffirming the administration’s commitment to fully funding New Jersey’s school funding formula and directing more resources to school districts than ever before. He also pushed for universal pre-K expansion and called on school districts to provide full-day kindergarten. Acknowledging the growing youth mental health crisis, Governor Murphy proposed new measures to support student well-being.
Significantly, the Governor called on the Legislature to pass measures to ban cell phones in K-12 schools, citing concerns over distractions, cyberbullying, and the negative impact of excessive screen time on learning.
Affordable Housing and Zoning Reform
Housing affordability remains a priority for the Governor. His speech outlined plans to lower housing costs and reform New Jersey’s zoning and permitting laws to make it easier to build new housing, particularly in communities that need it the most. This comes as part of a broader push to address the state’s housing crisis.
Infrastructure and Transportation
Governor Murphy also highlighted a historic undertaking to rebuild and reform New Jersey’s transportation infrastructure. The state is moving forward with the much-anticipated Hudson River Tunnel Project, which is expected to improve transportation connectivity while creating thousands of jobs. The Governor emphasized safety with new driver education programs focused on cyclists and pedestrian safety.
Innovation and Technology
New Jersey continues to position itself as a leader in innovation with the creation of strategic innovation centers, including the AI Hub at Princeton University and several fintech and technology hubs at institutions like Stevens Institute of Technology and Rutgers University.
Criminal Justice and Public Safety
Governor Murphy touched on the administration’s ongoing efforts to reform the criminal justice system, including a clemency initiative. New Jersey’s record-low gun violence rates were highlighted as a key success. The Governor also emphasized the importance of parole reform and he plans to grant more commendations in addition to the 33 individuals he has already pardoned. The Governor called on the Legislature to pass a bill to reform penalties on technicalities for basic parole violations to uphold trust in our criminal justice system and strengthen public safety.
Climate Change and Clean Energy
Governor Murphy reiterated his commitment to addressing climate change and securing a cleaner, more sustainable future for New Jersey. He reaffirmed his administration’s goal to achieve 100% clean energy by 2035 and called for codifying this clean energy standard into law in order to secure New Jersey energy independence and green jobs.
Tax Reform and Fiscal Responsibility
The Governor called on the Legislature to reform New Jersey’s farmland assessment system, recognizing the need to ensure that the state’s tax policies are aligned with the needs and expectations of its residents. Governor Murphy also took pride in his administration’s fiscal responsibility, marking four consecutive years of full payments into the state pension system.
Democratic leadership applauded the state’s progress, while Republicans criticized increasing affordability concerns. In six weeks, Governor Murphy will deliver his state budget address.
McCarter’s Government Affairs team has an intimate knowledge of New Jersey government and deep relationships with political and industry leaders in the state. Please contact a member of our team with any questions or to learn more about the State of the State Address.