Phil murphy budgets $1 million to fund new jersey's fight against trump , raises taxes

Phil Murphy Budgets $1 Million to Fund New Jersey’s Fight Against Trump , Raises Taxes

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January 14, 2026

TRENTON, N.J. – Gov. Phil Murphy has released his proposed fiscal year 2026 budget for New Jersey, outlining $58.1 billion in spending, an increase of roughly $2 billion from the previous year. The plan includes new tax measures, funding allocations for legal initiatives, and adjustments to education and public programs.

According to budget documents, the proposal includes $1 million to fund legal efforts related to federal policy disputes against President Donald Trump. The funds would allow the state to retain outside counsel to address issues involving education and immigration policy.

The budget also proposes several tax changes. Alcohol taxes would increase by 10%, while internet gaming and sports betting taxes would rise from 15% and 13% respectively to 25%. The real estate transfer tax would also see an increase. The administration said these measures are designed to strengthen revenue streams and support ongoing state programs.

Among new spending items, the proposal includes $3 million to expand the use of cell phone pouches in schools and $20 million in reductions to community college funding compared with the prior year. It also removes the state sales tax on baby products, aligning with legislative proposals in the Assembly and Senate.

The governor’s office described the budget as an effort to maintain fiscal stability while advancing affordability and education priorities. The Office of Legislative Services has projected the state’s structural deficit at $1.8 billion under the new plan.

Phil Stilton

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