TRENTON, N.J. – A new bill introduced in the New Jersey Senate seeks to prevent money raised from the state’s 2016 gas tax increase from being used to fund passenger or freight rail projects, restricting those dollars strictly to road and highway infrastructure.
Senate Bill 475, sponsored by Senator James W. Holzapfel of the 10th Legislative District, would amend current law governing the Special Transportation Fund to specify that revenues from the petroleum products gross receipts tax increase enacted under P.L.2016, c.57 cannot be allocated to any project related to passenger or freight rail service.
The measure also eliminates a provision in existing law requiring the state to allocate a minimum of $25 million annually for the design, construction, and rehabilitation of freight rail projects. Those funds have traditionally supported infrastructure improvements tied to port commerce connectivity, freight line upgrades, and rail safety initiatives across New Jersey.
Under the bill, the New Jersey Department of Transportation would continue to administer funds from the Special Transportation Fund for projects approved through the annual appropriations process, but rail initiatives would no longer qualify for financing through revenues derived from the 2016 gas tax increase.
Holzapfel, whose district includes portions of Monmouth and Ocean counties, has long advocated for directing transportation tax dollars primarily toward road and bridge improvements that benefit motorists statewide.
The proposed legislation would take effect immediately upon enactment.