(TRENTON) – With the goal to make it easier for local governments to finance infrastructure projects through the New Jersey Infrastructure Bank (NJIB), Governor Phil Murphy on Tuesday signed legislation removing the requirement that a local government appropriate five percent of the obligation for a project financed through the NJIB.
By amending local bond law, the new law (formerly bill A-4552) makes it simpler for local governments to seek financing for projects through the NJIB. A five percent obligation was previously required for transportation projects, but not for environmental projects.
The measure was approved by full Assembly in March 72-1 and by the Senate in January 34-0.
The sponsors of the law, Assembly Democrats Eric Houghtaling (D-Monmouth), Daniel Benson (D-Mercer, Middlesex) and Chris Tully (D-Bergen) released the following joint statement:
“The New Jersey Infrastructure Bank plays a critical role in helping municipalities finance vital investments in our communities, including improving roads and bridges to ensure pedestrian safety. This law eliminates an unnecessary financial barrier for municipalities pursuing projects through the NJIB and makes requirements consistent with environmental initiatives. As we look to rebuild our economy post-COVID-19, it’s imperative that we expand opportunities to create jobs and strengthen our infrastructure.”