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S4308
SENATE, No. 4308
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 18, 2026
Sponsored by:
Senator� PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator� RAJ MUKHERJI
District 32 (Hudson)
Co-Sponsored by:
Senators Holzapfel, Corrado, O'Scanlon, A.M.Bucco, Henry,
Wimberly and McKnight
SYNOPSIS
���� Authorizes NJ Infrastructure Bank to expend certain
sums to make loans for transportation infrastructure projects for FY2027; makes
appropriation.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
authorizing the expenditure of funds by the New
Jersey Infrastructure Bank for the purpose of making loans to eligible project
sponsors to finance the cost to construct transportation infrastructure
projects and making an appropriation.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in this act:�
���� �Bank� means the New Jersey
Infrastructure Bank, established pursuant to section 4 of P.L.1985, c.334
(C.58:11B-4).
���� �Capitalized interest� means
an amount equal to the interest paid on bank transportation bonds that is
funded with bank transportation bond proceeds and the earnings thereon.
���� �Debt service reserve fund
expenses� means the debt service reserve fund costs associated with reserve
capacity expenses.
���� �Issuance expenses� means any
costs related to the issuance of bank transportation bonds and includes, but is
not limited to, the costs of financial document printing, bond insurance
premiums or other credit enhancement, underwriters� discount, verification of
financial calculations, the services of bond rating agencies and trustees, and
the employment of accountants, attorneys, financial advisors, loan servicing
agents, registrars, and paying agents.
���� �Loan origination fee� means
the fee charged by the bank to pay a portion of the costs incurred by the bank
and the Department of Transportation in the implementation of the New Jersey
Transportation Infrastructure Financing Program.
���� �Project sponsor� means a
local government unit receiving a loan from the bank pursuant to this act.
���� �Reserve capacity expenses�
means those project costs for reserve capacity that are eligible for loans from
the bank in accordance with the requirements of subsection g. of section 9 of
P.L.1985, c.334 (C.58:11B-9) and any policy statements relating to the
Transportation Infrastructure Financing Program to be set forth in the State
Fiscal Year 2027 Transportation Infrastructure Financing Program Financial
Plan.
���� 2.��� a.� The New Jersey
Infrastructure Bank is authorized to expend the aggregate sum of $65,550,000 or
such amounts as can be supported through balances in the State Transportation
Infrastructure Bank Fund, established pursuant to section 34 of P.L.2016, c.56
(C.58:11B-10.4), and via direct appropriation through the State transportation
capital program for the purpose of making loans to, or on behalf of, local
government units to finance all or a portion of the cost of construction of
transportation infrastructure projects listed in section 4 of this act.
���� b.��� The bank is authorized
to make a maximum of $1,000,000 in principal-forgiveness financing loans to
project sponsors for planning and design costs.� Up to $100,000 of a loan
authorized by this subsection, per borrower, shall be forgiven for a project
where a principal amount of at least $250,000 is financed by the Transportation
Infrastructure Financing Program through completion of the project�s
construction.
���� c.���� The bank is authorized
to increase the aggregate sums specified in subsection a. of this section for
the bank�s costs to acquire lending capital, including:�
���� (1)�� the amounts of
capitalized interest, interest accrued pursuant to a short-term or temporary
loan made to a project sponsor pursuant to the Interim Transportation Financing
Program, and the bond issuance expenses, as provided in subsection b. of
section 7 of this act;
���� (2)�� the amounts of reserve
capacity expenses and debt service reserve fund requirements, as provided in
subsection c. of section 7 of this act;
���� (3)�� the amounts of the loan
origination fee, as provided in subsection d. of section 7 of this act; and
���� (4)�� the amounts of the debt
service reserve or guarantees provided to local government units from the
Economic Development and Infrastructure Improvement Revolving Fund, as provided
in subsection e. of section 7 of this act.
���� 3.��� The New Jersey
Infrastructure Bank is authorized to make loans to, or on behalf of, the
project sponsors for the transportation projects listed in subsection a. of
section 4 of this act up to the individual amounts indicated and in the
priority stated, except that any such amount may be reduced by the bank
pursuant to subsection a. of section 7 of this act, or if a project fails to
meet the requirements of section 6 of this act.� The bank is authorized to
increase any such amount pursuant to subsection b. through subsection d. of
section 7 of this act or section 8 of this act.
���� 4.��� a. The following
transportation infrastructure projects shall be known and may be cited as the �State
Fiscal Year 2027 Transportation Financing Program Project Eligibility List�:�
Applicant, Project No.
Project Description
Estimated Total
Allowable State Loan Amount
Estimated Total
Allowable Loan Amount
Bayonne City, TB0901-001
E. 25th Street
Pedestrian Bridge Replacement
$2,000,000
$4,000,000
Bayonne City,
TB0901-001R
E. 25th Street
Pedestrian Bridge Replacement
$450,000
$900,000
Essex County, TB0700-004
Priority Repairs to
County Bridges - Harrison, East Newark and Newark
$2,675,000
$5,350,000
Hoboken City, TB0905-001
Sinatra Drive Redesign
Project
$4,225,000
$8,450,000
Princeton,
TB1110-001
Improvement of
Witherspoon Street Phases 2 and 3
$4,225,000
$8,450,000
Robbinsville Township,
TB1112-002
Country Meadows,
Brookshire Estate, and Meadowbrook Road
$1,700,000
$3,400,000
Bayonne City, TB0901-003
Improvements to
Broadway and Avenue E
$875,000
$1,750,000
Hoboken City, STB0905-003
WIU Phase 2 - Complete
Streets Improvements
$1,875,000
$3,750,000
Plumsted Township,
TB1523-001
Plumsted Road and
Drainage Projects 2021
$700,000
$1,400,000
Little Ferry Borough, TB0230-002
2024 Road Improvement
Program
$925,000
$1,850,000
Willingboro Township,
TB0338-001
2023 Segment Rating 4
Roadway Project
$1,850,000
$3,700,000
Hawthorne Borough, TB1604-001
2024-2026 Road Project
$3,275,000
$6,550,000
Mendham Township, TB1419-002
2024 Road Improvements
$1,150,000
$2,300,000
Marlboro Township, TB1328-003
2024 Road Improvement
Program (060-4, 060-7)
$575,000
$1,150,000
Seaside Park Borough,
TB1527-001
Seaside Park Boardwalk
Reconstruction
$6,275,000
$12,550,000
Total Projects: 15
$32,775,000
$65,550,000
���� b.��� The bank is authorized
to adjust the allowable loan amount and estimated total allowable loan amount
for each project authorized in this section as appropriate, as long as the
total amount of the loan issuance remains within available funds, and each loan
is issued pursuant to the terms and conditions of the financing program from
the year in which each construction contract for a project was certified if
subject to an interim financing program loan or, in the absence of an interim
financing program loan, the terms and conditions of the State Fiscal Year 2027
Transportation Infrastructure Financing Program.
���� c.���� The bank is authorized
to increase the loan amount of projects authorized pursuant to this section in
the future to compensate for a refunding of the issue, where adequate savings
are achieved, for the loans issued pursuant to this act.
���� 5.��� In accordance with and
subject to the provisions of sections 5, 6, and 23 of P.L.1985, c.334
(C.58:11B-5, C.58:11B-6, and C.58:11B-23), and as set forth in the financial
plan required pursuant to section 37 of P.L.2016, c.56 (C.58:11B-22.3), any
proceeds from bonds issued by the bank to make loans for priority
transportation infrastructure projects listed in section 4 of this act that are
not expended for that purpose may be applied for the payment of all or any part
of the principal of, or interest and premium on, the bank transportation bonds
whether due at stated maturity, the interest payment dates, or earlier upon
redemption.� A portion of the proceeds from bonds issued by the bank to make
loans for priority transportation infrastructure projects pursuant to this act
may be applied for the payment of capitalized interest and for the payment of
any issuance expenses; for the payment of reserve capacity expenses; for the
payment of debt service reserve fund expenses; for the payment of the loan
origination fees; and for the payment of increased costs, as defined and
determined in accordance with the rules and regulations adopted by the bank,
pursuant to section 27 of P.L.1985, c.334 (C.58:11B-27), and the requirements
of subsection g. of section 9 of P.L.1985, c.334 (C.58:11B-9), and any policy
statements relating to the Transportation Infrastructure Financing Program to
be set forth in the State Fiscal Year 2027 Transportation Infrastructure
Financing Program Financial Plan.
���� 6.��� Any loan made by the New
Jersey Infrastructure Bank pursuant to this act shall be subject to the
following requirements:�
���� a.���� the chairperson,
vice-chairperson, or secretary of the bank shall certify that the project
complies with the applicable provisions of P.L.1984, c.73, P.L.1985, c.334,
P.L.2016, c.56, and any amendatory and supplementary acts thereto, and any
rules and regulations adopted pursuant thereto, as applicable, and satisfies
the requirements of subsection g. of section 9 of P.L.1985, c.334 (C.58:11B-9),
and any policy statements relating to the Transportation Infrastructure
Financing Program set forth in the State Fiscal Year 2027 Transportation
Infrastructure Financing Program Financial Plan.� In making this certification,
the chairperson, vice-chairperson, or secretary may conclusively rely on the
project review conducted by the Department of Transportation without any
independent review thereof by the bank;
���� b.��� the loan shall be
conditioned upon the inclusion of the project on a project eligibility list
approved pursuant to section 36 of P.L.2016, c.56 (C.58:11B-20.2);
���� c.���� the loan shall be
repaid within a period not to exceed 31 years of the making of the loan or, for
loans funded pursuant to the �Transportation Infrastructure Finance and
Innovation Act� (TIFIA), 23 U.S.C. s.601 et seq., as amended and superseded,
not later than the maximum time period allowed by the TIFIA;
���� d.��� the loan shall not
exceed the allowable project cost of the transportation infrastructure project,
exclusive of capitalized interest, administrative expenses associated with
federal funding programs, if applicable, and issuance expenses, as provided in
subsection b. of section 7 of this act, reserve capacity expenses and the debt
service reserve fund expenses, as provided in subsection c. of section 7 of
this act, the amounts of the loan origination fee as provided in subsection d.
of section 7 of this act, refunding increases as provided in section 8 of this
act, and increased costs as defined and determined in accordance with the rules
and regulations adopted by the bank, pursuant to section 27 of P.L.1985, c.334
(C.58:11B-27), and the requirements of subsection g. of section 9 of P.L.1985,
c.334 (C.58:11B-9), and any policy statements relating to the Transportation
Infrastructure Financing Program to be set forth in the State Fiscal Year 2027
Transportation Infrastructure Financing Program Financial Plan;
���� e.���� the loan shall bear
interest, exclusive of any cost of issuance charges, late charges, or
administrative fees payable to the bank, pursuant to subsection o. of section 5
of P.L.1985, c.334 (C.58:11B-5), by the project sponsors receiving bank
transportation loans, at or below the interest rate paid by the bank on the
bonds issued to make or refund the loans authorized by this act, adjusted for
underwriting discount and original issue discount or premium, in accordance
with the terms and conditions set forth in the financial plan required pursuant
to section 37 of P.L.2016, c.56 (C.58:11B-22.3); and
���� f.���� the loan shall be
subject to all other terms and conditions, as the bank shall determine to be
consistent with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), and any
rules and regulations adopted pursuant thereto, the requirements of subsection g.
of section 9 of P.L.1985, c.334 (C.58:11B-9), and any policy statements
relating to the Transportation Infrastructure Financing Program and the
financial plan required by section 37 of P.L.2016, c.56 (C.58:11B-22.3).� The
eligibility lists and authorization for the making of loans pursuant to this
act shall expire on July 1, 2027, and any project sponsor who has not executed
and delivered a loan agreement with the bank for a loan authorized in this act
shall no longer be entitled to that loan.
���� 7.��� a.� The New Jersey
Infrastructure Bank is authorized to reduce the individual amount of loan funds
made available to, or on behalf of, project sponsors pursuant to section 4 of
this act based upon final building costs, as defined and determined in accordance
with rules and regulations adopted by the bank pursuant to section 27 of
P.L.1985, c.334 (C.58:11B-27), and the requirements of subsection g. of section
9 of P.L.1985, c.334 (C.58:11B-9), and any policy statements relating to the
Transportation Infrastructure Financing Program to be set forth in the State
Fiscal Year 2027 Transportation Infrastructure Financing Program Financial
Plan.� The bank is authorized to use any such reduction in the loan amount made
available to a project sponsor to cover that project sponsor�s increased costs
due to differing site conditions or other allowable expenses, as defined and
determined in accordance with the rules and regulations adopted by the bank,
pursuant to section 27 of P.L.1985, c.334 (C.58:11B-27), and the requirements
of subsection g. of section 9 of P.L.1985, c.334 (C.58:11B-9), and any policy
statements relating to the Transportation Infrastructure Financing Program to
be set forth in the State Fiscal Year 2027 Transportation Infrastructure
Financing Program Financial Plan.
���� b.��� The bank is authorized
to increase each loan amount authorized in section 4 of this act by the amount
of capitalized interest, interest accrued pursuant to a short-term or temporary
loan made to a project sponsor pursuant to the Interim Transportation Financing
Program, issuance expenses, and administrative expenses associated with federal
funding programs allocable to each loan made by the bank pursuant to this act.
���� c.���� The bank is authorized
to increase each loan amount authorized in section 4 of this act by the amount
of reserve capacity expenses and the debt service reserve fund expenses
associated with the costs identified in subsection c. of section 2 of this act.
���� d.��� The bank is authorized
to increase each loan amount authorized in section 4 of this act by the loan
origination fee.
���� e.���� The bank is authorized
to utilize the funds appropriated to the bank for deposit into the Economic
Development and Infrastructure Improvement Revolving Fund for the provision of
debt service reserves and guarantees to local government units that finance a
transportation project or redevelopment project, which debt service reserves
and guarantees shall be used to satisfy any applicable creditworthiness
requirements of the local government unit.
���� 8.��� The New Jersey
Infrastructure Bank is authorized to utilize the proceeds from the refunding of
bank transportation bonds to increase the individual amount of loan funds made
available to project sponsors by the bank, pursuant to this act, as long as the
amount of the increase is limited to the amount of savings achieved by the
refunding of bank transportation bonds issued to make loans authorized by this
act.� The expenditure of funds authorized pursuant to this act is subject to
the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), as amended and
supplemented by P.L.2016, c.56, and the requirements of subsection g. of
section 9 of P.L.1985, c.334 (C.58:11B-9), and any policy statements relating
to the Transportation Infrastructure Financing Program to be set forth in the
State Fiscal Year 2027 Transportation Infrastructure Financing Program
Financial Plan, as appropriate.
���� 9.��� Notwithstanding any
provision of law or regulation to the contrary, including, but not limited to,
the provisions of subsection b. of section 23 of P.L.1985, c.334 (C.58:11B-23),
the New Jersey Infrastructure Bank is authorized to utilize the following funds
generated by the operation of the bank to defray the annual operating expenses
of the bank:�
���� a.���� the proceeds from the
sale of the bank�s bonds, notes, or other obligations;
���� b.��� the revenues derived
from investments by the bank;
���� c.���� any loan repayments
paid to the bank, including interest from local government units;
���� d.��� the proceeds of any fees
and charges levied by the bank;
���� e.���� any funds received from
the federal government that are permitted by the federal government to be used
for the operating expenses of the bank; and
���� f.���� any funds otherwise
permitted to be used for the operating expenses of the bank.
���� 10.� a.� There is appropriated
to the New Jersey Infrastructure Bank from the General Fund, for deposit in the
transportation subaccount of the special fund created and established by the
bank for the short-term or temporary loan financing or refinancing under the
Disaster Relief Emergency Financing Program, authorized pursuant to subsection
a. of section 1 of P.L.2013, c.93 (C.58:11B-9.5), such sums as are needed
consisting of:�
���� (1)�� sums from the Interim
Transportation Financing Program Fund, as needed by the bank to make short-term
or temporary loans pursuant to the Disaster Relief Emergency Financing Program
to any one or more of the project sponsors, for the respective projects thereof;
and
���� (2)�� such other amounts to be
deposited in the Disaster Relief Emergency Financing Program Fund, established
pursuant to subsection a. of section 1 of P.L.2013, c.93 (C.58:11B-9.5), as
long as the amount so appropriated to the bank for deposit in the Disaster
Relief Emergency Financing Program Fund shall be utilized by the bank to make
short-term or temporary loans pursuant to the Disaster Relief Emergency
Financing Program to any one or more of the project sponsors, for the
respective projects thereof.� Any transportation projects funded by the
Disaster Relief Emergency Financing Program shall be subject to the approval of
the Commissioner of Transportation.
���� b.��� The Transportation
Disaster Relief Emergency Financing Program Project Priority List shall be
submitted to the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), at least once in each fiscal year.� Any transportation
infrastructure project or the project sponsor thereof not identified in the
Transportation Disaster Relief Emergency Financing Program Project Priority
List shall not be eligible for a short-term or temporary loan from the
Transportation Disaster Relief Emergency Financing Program Fund.
���� 11.� Notwithstanding the
provisions of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.), to the contrary, the bank shall not be required to adopt rules and
regulations governing the issuance of loans under the �Disaster Relief Emergency
Financing Program.�
���� 12.� This act shall take
effect immediately and shall expire on July 1, 2027.
STATEMENT
���� This bill authorizes the New
Jersey Infrastructure Bank (NJIB) to expend up to $65,550,000 in Fiscal Year
2027 (FY2027) to provide low-interest loans to certain local government units
that undertake one of 15 eligible transportation infrastructure projects set
forth in the bill.� The bill also authorizes the NJIB to make a maximum of $1
million in principal-forgiveness financing loans to project sponsors for
planning and design costs.� Under the bill, up to $100,000 of a loan, per
borrower, is to be forgiven for a project where a principal amount of at least
$250,000 is financed by the Transportation Infrastructure Financing Program
through completion of the project�s construction.
���� Additionally, the bill permits
the NJIB to use any loan repayments received to date, and the amounts for
capitalized interest, interest accrued pursuant to a short-term or temporary
loan made to a project sponsor pursuant to the Interim Transportation Financing
Program, bond issuance expenses, and related amounts, to fund the FY2027 New
Jersey Transportation Infrastructure Financing Program (NJTIB).� The bill also
authorizes the NJIB to utilize certain funds generated by the operation of the
bank, including, but not limited to, proceeds from the sale of bonds, the
revenues derived from investments, and loan repayments, to defray the NJIB�s
FY2027 operating expenses.� Finally, the bill appropriates certain funds from
the General Fund to the NJIB.
���� Since its creation in 2018,
the NJIB, in partnership with the Department of Transportation, has provided
low-cost NJTIB loans for the construction of critical transportation
infrastructure projects with the mission of reducing the cost of financing for
New Jersey counties and municipalities and making possible responsible and
sustainable economic development.