The basics:

• Jersey City $120M stabilization package includes $15M aid, $105M loan
• Funding closes gap on projected $255M budget deficit
• Helps avert up to 31% tax increase, potential layoffs
• State budget advances to final votes; city action set for Wednesday

Jersey City secured a major financial lifeline Sunday night after state lawmakers unveiled a $120 million stabilization package as part of New Jersey’s fiscal year 2027 budget. The move provides critical support that city officials say will help avert the steepest tax increases and deepest service cuts as the municipality works through an unprecedented budget crisis.

The package includes $15 million in direct state aid and a $105 million loan, matching the amount city officials had requested as they work to close a projected $255 million budget deficit. The funding was included in the state budget unveiled during the rare Sunday night budget committee meetings. The budget bill advanced and now heads to final votes in both chambers Tuesday.

Mayor James Solomon welcomed the news Monday morning, just hours after hosting a June 28 community meeting on the city’s fiscal challenges.

“I finished our community meeting last night, and woke up this morning to some good news,” Solomon said in a video posted to social media. “The state advanced out of its committees for final vote on Tuesday our full aid package, the full $120 million we’ve been asking for, that is really going to help.”

The state assistance comes less than two weeks after Solomon unveiled a fiscal stabilization plan that included a proposed 20% municipal tax increase to address years of structural budget issues, inherited obligations and unpaid bills. Facing pushback from residents, the administration later postponed a City Council vote on the proposal, as NJBIZ reported, while searching for additional spending cuts and continuing to pursue state assistance.

Avoiding ‘worst-case awful scenarios’

According to Solomon, the funding will significantly reduce the need for some of the most severe measures previously under consideration.

“That’s going to avoid these worst-case awful scenarios, 31% tax increase, mass public safety layoffs,” said Solomon. “It’s going to help us get through this historic budget crisis.”

He thanked Gov. Mikie Sherrill; Senate President Nick Scutari, D-22nd District; Assembly Speaker Craig Coughlin, D-19th District; Hudson County Executive Craig Guy and the Hudson County legislative delegation for helping secure the assistance.

Good news: The State of New Jersey will provide Jersey City with $120 million in financial help, $105 million of which is a loan. It’s our job now to continue being responsible and making the tough but necessary decisions to ensure this crisis never happens again. pic.twitter.com/zw5oW3aKpq

— City of Jersey City (@JerseyCity) June 29, 2026

Not a long-term solution

Still, he cautioned that the package does not eliminate the city’s long-term financial challenges. He noted that the bulk of the assistance comes in the form of a repayable loan.

“The state is going to expect us to do our part,” Solomon stressed. “They are giving a huge portion of this $105 million in a loan, paid back over a long period of time. They still expect us to address our structural deficit through both tax increases and service cuts. So, those are things we are moving forward on. We are finding ways to try to do this as responsibly as possible.”

The state is going to expect us to do our part.
– James Solomon, Jersey City mayor

Ahead of a special City Council meeting Wednesday, the mayor said the administration will continue to refine its fiscal recovery plan while incorporating feedback received during Sunday’s community meeting.

“We’re continuing to listen to your ideas, your suggestions, your concerns,” Solomon said. “So, there’s more to come as we move forward with a vote on Wednesday, and then the full budget in two weeks.”

Solomon described the state assistance as unprecedented for a New Jersey municipality.

“We really appreciate this support. It really does help. It’s historic. It’s more than any city has ever received in New Jersey’s history, and it’s going to help us get through our toughest financial challenge in our history.”