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The Commissioner's Report


$8 billion through FY2009

New federal law adds 30 percent to NJDOT capital program

The long-awaited Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) was signed into law in August.

It provides $286.4 billion in guaranteed funding ending in fiscal year 2009 and marks the largest ever Congressional investment in our nation’s transportation infrastructure.

New Jersey will receive approximately $8 billion over the life of the law for highway and transit projects. Most of the increase in funding will be seen in fiscal years 2007-2009; FY05 and FY06 funding levels will remain intact. The funding represents an overall increase of approximately 30 percent compared to the previous surface transportation bill that was known as TEA-21.

The increased federal funding enables the New Jersey Department of Transportation (NJDOT) to make improvements to New Jersey’s transportation infrastructure that will reduce congestion, support safety, promote mass transit, protect the environment and improve overall efficiency in freight movement. It provides for increased investment in research and development. It will also create jobs.

A critical aspect of the SAFETEA-LU law gives more flexibility to state and local transportation decision-makers to solve transportation problems in their own communities.

SAFETEA-LU also addresses needs specific to donor states such as New Jersey that send more tax revenue to the federal Highway Trust Fund than they receive. The law’s Equity Bonus program ensures that donor states receive a return on their share of tax contributions that is equivalent to at least 90.5 percent. The measure preserves funding guarantees and assures that if additional receipts become available, they can be used for highway programs.

This important legislation will help NJDOT improve mobility for the motorists and residents of New Jersey.

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  Department of Transportation
  P.O. Box 600
  Trenton, NJ 08625-0600
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  Last Updated:  October 19, 2005