TRENTON, NJ – Governor Phil Murphy has signed two major bills overhauling the state’s 30-year-old Charter School Program Act, enacting sweeping reforms to strengthen transparency, governance, and financial accountability for charter schools operating in New Jersey.
The new laws, A5935/S4716 and A5936/S4713, modernize the 1995 statute by increasing state oversight, establishing new public reporting requirements, and prohibiting for-profit entities from operating charter schools. Together, they represent the most significant update to New Jersey’s charter school framework since its creation.
“Every child in New Jersey deserves to receive a high-quality education, and taxpayers deserve to know how public funds are being used,” said Governor Murphy. “Stronger oversight is necessary to ensure public funds are used responsibly and that students – not private interests – are the top priority. With today’s bill signings, we are setting a higher standard for charter schools operating in New Jersey and giving the State greater authority to hold them accountable to the communities they serve.”
Under the new measures, charter schools will face expanded reporting requirements for admissions, enrollment, and student exits, while being prohibited from counseling students to withdraw. Schools will also be required to designate student placement liaisons to coordinate enrollment and transitions, and to submit annual non-identifiable student exit data to the Commissioner of Education.
Charter schools that operate athletic programs will now have to join a voluntary athletics association and follow established eligibility rules for student athletes, including those who live outside district boundaries.
A5936/S4713 further enhances state authority over charter school governance, mandating public access for applications, renewals, and major operational decisions. Schools must now publicly disclose budgets, contracts, and leadership salaries while adhering to strengthened Open Public Meetings standards. The law also empowers the Commissioner of Education to review, place on probation, or revoke a school’s charter when necessary.
“These bills strengthen the framework governing charter school operations, enhance accountability and transparency, while maintaining the innovative model that has long characterized New Jersey’s charter school communities,” said New Jersey Department of Education Commissioner Kevin Dehmer.
The legislation was sponsored by Senators Vin Gopal and Linda Greenstein, along with Assembly Members Luanne Peterpaul, Verlina Reynolds-Jackson, and Sterley Stanley.
Senator Gopal said the reforms directly address long-standing issues of mismanagement. “These bills add new and necessary requirements for increased transparency, accountability, and oversight in response to excessive executive compensation and financial mismanagement,” he said.
Senator Greenstein added that the laws “close gaps that have allowed for financial abuse” and will ensure that “charter schools are publicly accountable to the communities they serve.”
Assemblywoman Peterpaul emphasized the bipartisan nature of the effort, noting that the bills “reward high-performing charter schools with extended renewals while enhancing oversight of problematic actors.”
Assemblywoman Reynolds-Jackson said the new laws “give the State the tools it needs to ensure public dollars are well spent,” while Assemblyman Stanley noted they bring “parity in oversight” between charter schools and traditional public schools.
The legislation drew wide support from education stakeholders, including the New Jersey Education Association, which called the bills a “smart new approach to charter school transparency and accountability.” NJEA President Steve Beatty credited the success to “conversation, collaboration and common sense.”
Harry Lee, president and CEO of the New Jersey Public Charter Schools Association, said the measures strike the right balance between oversight and flexibility. “This legislation acknowledges the powerful impact charter schools have within our public education system,” he said. “It thoughtfully balances stronger transparency and accountability with protecting the flexibility that drives charter success.”
Other education leaders, including the Garden State Coalition of Schools, AFT New Jersey, and the New Jersey Principals and Supervisors Association, praised the reforms as overdue updates that ensure fiscal integrity and fairness across all public schools.
Governor Murphy’s signing of the charter school modernization bills marks a new chapter in state oversight, setting clear standards for transparency, fiscal responsibility, and student-centered governance in New Jersey’s charter school system.
Governor Murphy signs two bills overhauling charter school oversight, expanding transparency, and strengthening state authority over New Jersey’s charter schools.
