Governor Sherrill’s First Budget: Recommitments to Energy Affordability, Holding Big Tech Accountable, Funding NJ Transit

Trenton, NJ - Today, Governor Sherrill presented her first budget address to the Legislature for fiscal year 2027 (FY27). New Jersey is facing a roughly $3 billion structural deficit heading into the year. The overall budget proposes a record $60.7 billion in funding.

In the address, the state dedicated funds to energy affordability through new clean energy generation, ensuring NJ Transit works for all, and committed to holding Big Tech and our grid operator, PJM, accountable.

Anjuli Ramos-Busot, Director of the New Jersey Sierra Club, issued the following statement:

“The New Jersey Sierra Club commends Governor Sherrill for a successful first budget address and clear commitment to affordability. The budget was strong on tackling skyrocketing energy prices and utility rates by increasing solar and battery procurement. It also recognizes the need to fund NJ Transit and modernize our rail and bus fleet.

“Governor Sherrill rightly called out our regional grid operator, PJM, for their serious mismanagement of our grid and interconnection queue that has left New Jerseyans and families across the region struggling to meet new energy demand coming from power-hungry data centers.

“As we continue to see electricity rates rise, we need to be deploying affordable clean energy more than ever, rather than increasing our reliance on expensive fossil fuels. We strongly support the administration's goals to expand community solar, energy storage, grid modernization, and more. As we saw in the recent winter storm, clean energy sources held up well in extreme weather and can help offset spiking gas prices. This is the right move to be making.

“We support the Governor’s move to close corporate tax loopholes to generate an estimated $750 million in new revenue. These funds are necessary to ensure that environmental protection and climate mitigation programs remain fully funded as we move toward a balanced budget in 2028.

“In this budget, Sherrill committed to finding long-term solutions instead of ‘plugging new holes every year.’ However, she is still redirecting $140 million from the Clean Energy Fund for NJ Transit, which is a band-aid solution to fill such holes and undercuts our investments in clean energy. Meeting Governor Sherrill’s goals to expand clean energy procurement requires a dedicated source of funding for necessary infrastructure and relies on these initiatives for a more resilient, affordable energy system.

“We will continue to work with the Sherrill Administration and the Legislature to ensure that 'tough choices' do not result in raiding the Clean Energy Fund or slowing our transition away from fossil fuels. We look forward to finding more long-term affordability solutions, like responsibly developed offshore wind. We must remain laser-focused on protecting our drinking water, mitigating flooding, and ensuring an equitable clean energy transition for all New Jerseyans.”

Chapter Chair, Joe Testa, made the following statement:

“Although we are pleased with many aspects of Governor Sherrill’s budget address, we would like to hear more about conservation, preserving open space, and ensuring we build smart in New Jersey. While we appreciate her commitment to protecting the Affordable Housing Trust Fund, we need the same commitment to the Clean Energy Fund to make living truly affordable.

“We applaud that Governor Sherrill has committed to continuing the Gateway Tunnel Project, which will improve transportation options for New Jersey residents.”

###

About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information about our work in New Jersey, visit www.sierraclub.org/new-jersey.