For 17th Straight Year, NJ Govt Diverts Funding For Energy Efficiency & Renewables ($190 Million)
For the 17th year in a row, the New Jersey Legislature diverted tens of millions of dollars meant for clean energy investments to plug shortfalls in their general state budget.
On Monday, Gov. Phil Murphy signed into law the fiscal year 2026 budget totaling around $58.8 billion, the largest in New Jersey’s history. Tucked in the law is the reallotment of the state’s Clean Energy Fund (CEF), a climate investment effort meant to get clean energy projects like wind farms, solar arrays and transportation electrification off the ground.
Lawmakers diverted a total of $190 million from the CEF, with $140 million going to the New Jersey Transit budget and $50 million to the general state budget. It is the second-largest CEF diversion in the state’s history, behind only a $255 million transfer under former Gov. Chris Christie in 2014.
Started in 1999, the CEF is a dedicated pool of money collected from utility ratepayers through a societal benefits charge on their energy bills. It is used to support statewide programs that promote energy efficiency, renewable energy and emissions reductions. But money has frequently been pulled out of it to plug unrelated budget gaps, like state building utility costs or park maintenance.
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https://insideclimatenews.org/news/02072025/new-jersey-budget-strips-clean-energy-fund/