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NJ Transit board members voted unanimously April 10 to raise fares by 15%, effective on July 1, along with 3% annual increases beginning in 2025.

The vote followed a morning of spirited public comments as attendees urged the board to reject the increase – with those in opposition ranging from Hoboken Mayor Ravi Bhalla to members of advocacy groups and everyday riders.

Transit funding has been at the center of public debate for much of 2024 – between this proposed rate hike, which drew immediate and sustained backlash and the proposal by Gov. Phil Murphy of a new corporate transit fee to provide a dedicated funding source for NJ Transit moving forward. The business community opposes the fee.

NJ Transit is facing a fiscal cliff of more than $100 million for FY 2025, a figure that jumps to nearly $1 billion in FY 2026. Proponents argue that the fare hike, the first since 2015, is needed to plug that deficit as the agency incurs higher expenses from inflation, operations, contracted services, contractual annual wage increases and health care costs. At the same time, federal funds are drying up and ridership remains at depressed levels since the pandemic.

While NJ Transit was able to strengthen its bottom line through a combination of cost reductions and revenue enhancements, it says more help was needed – setting the stage for this fare hike.

“While a fare increase is always an option of last resort, we recognize the impact an increase of any size has on all our customers – and remain strongly committed to ensure that the overall service levels are not reduced through FY25,” said Kevin Corbett, NJ Transit president and CEO.

The agency said that even with the proposed CTF – which requires Legislative approval – this rate increase is necessary and will:

• maintain current overall service levels;
• close the operating budget gap when combined with other efforts;
• preserve discounts for seniors, people with disabilities, military personnel and students;
• and preserve current travel flexibility features.

Residents weigh in

Last month, 10 public hearings and a public comment session were held – drawing 1,151 total comments (1,030 via email and online and 121 at the public hearings), including 921 complaints that the 15% increase is too much.

That sentiment persisted at the board meeting as the public had one more opportunity to speak out before the vote – urging members to not be a rubberstamp and to consider how this hike will affect riders, especially at a time when they also face increased costs.

“This fare increase is, in my view, essentially a backdoor tax on working families,” said Bhalla, a Democratic candidate for Congress in District 8. “It’s not right. It’s unconscionable – and I want you to vote your conscience. There are a lot of good things about NJ Transit – and a lot of times where I publicly praise NJ Transit. The Hoboken Connect Project is one of those areas where we work cooperatively, and we work together – but this is an exception. This 15% tax increase is completely unconscionable because you are doing it on the backs of working families in Hoboken and throughout New Jersey.”

Before the vote, board member Richard Maroko echoed Corbett by stressing that a fare increase is always the last resort. “Which is the reason that the agency hasn’t increased fares in almost a decade,” he said. “And I think the alternative to filling that budget gap is cutting services. And I think cutting services really does a disservice to working families in New Jersey. I do agree that there needs to be additional funding going forward. I think we all acknowledge that. And I applaud Gov. Murphy for his proposal on corporate transit fee, which I think is necessary. And I would encourage the Legislature and the governor to find additional sources of funding to ensure that, in the future, NJ Transit does not have to cut services. And if there are any ways to help relieve the burden on working families and low-income families in other communities that are particularly vulnerable – I would encourage the Legislature and governor to look at that as well.”

“A number of people have asked us if we’re rubberstamps for the governor,” said board member Shanti Narra. “I’m not going to speak for anybody else here, but for myself, I will tell you – I am not. And I will also be very frank and tell you all that this vote pains me very, very much. I’m going to be voting yes – and my explanation for that is that as a member of this board, we have a fiduciary duty to the agency. And the alternative right now, without anything happening with the Legislature or the governor later on this year, is service cuts and job losses. In terms of job losses, that’s going to be devastating to our fellow citizens who work very hard for this agency. But the service cuts are the things that really are the biggest concern.”

‘Price gouging’ transit riders

Senate Republican Leader Anthony Bucco, R-25^th District, blasted the fare hike – describing it as an affront to every New Jerseyan struggling to make ends meet.

“While Governor Murphy preaches affordability, unfortunately his actions don’t match his words. From escalating gas taxes and increasing highway tolls, to raising taxes on employers and cutting funds to certain school districts, Governor Murphy and Trenton Democrats have relentlessly betrayed their promises to make New Jersey more affordable – and if that wasn’t bad enough, now they’re price gouging public transit riders,” said Bucco. “If we truly want New Jersey to be a great place to live, work, and raise a family, Republicans need to be given a seat at the table to properly address our affordability crisis.”

The adjusted fare schedule can be found here.