Thousands of seniors could lose Stay NJ tax breaks

🏠 A budget deal reportedly restores $100 million to Stay NJ, softening — but not eliminating — cuts proposed by Gov. Mikie Sherrill.
💸 Seniors earning between $250,000 and $500,000 could lose eligibility entirely under the reported agreement.
⚖️ The compromise helped break a budget standoff and clears the way for lawmakers to avoid a state government shutdown before July 1.

Budget deal preserves Stay NJ, but some seniors will get less tax relief

New Jersey lawmakers appear to have reached a last-minute budget compromise that preserves the Stay NJ property tax relief program, but not without significant changes that could reduce or eliminate benefits for thousands of senior homeowners.

According to NJ.com, which cited sources familiar with the negotiations, Gov. Mikie Sherrill and Democratic legislative leaders have agreed to a budget framework that restores some funding to Stay NJ while scaling back cuts that were part of the governor's original spending plan. The agreement comes just days before the June 30 budget deadline and appears to have averted the possibility of a state government shutdown.

NJ Gov. Mikie Sherrill's first budget keeps spending at historic highs as Stay NJ gets a last-minute boost. (NJ Legislature/Getty Images/TSQ illustration)

What Gov. Sherrill originally proposed for Stay NJ

When Sherrill unveiled her first state budget in March, she targeted the expensive property tax relief program as part of an effort to reduce long-term spending pressures.

Under her proposal, the maximum Stay NJ benefit would have been reduced from $6,500 to $4,000, and eligibility would have been limited to seniors with annual incomes of $250,000 or less. Current law allows seniors earning up to $500,000 to qualify.

The administration argued the changes were necessary to focus relief on middle-class seniors while helping address the state's structural budget challenges.

Reported budget compromise restores funding

Legislative leaders pushed back against the governor's proposed reductions and sought to preserve more of the program's original promise.

NJ Globe was first to report the final budget agreement adds roughly $100 million back into Stay NJ. The compromise reportedly allows more money to flow into the program than Sherrill initially proposed, though it stops short of fully restoring benefits envisioned under the original law.

The reported deal reflects months of tension between the governor and legislative leaders over how much New Jersey can afford to spend on senior property tax relief.

NJ property tax relief on the chopping block amid $4B deficit warning. (AP/Gov Mikie Sherrill via Facebook/Canva/Townsquare Media illustration)

Who could lose benefits under the new rules?

While the additional funding is good news for many seniors, not everyone comes out ahead.

According to NJ.com's sources, seniors with incomes above $250,000 are expected to see the biggest impact. Many of those homeowners who would have qualified under the original Stay NJ law could become ineligible for benefits altogether if the reported agreement's income limits remain in place.

Other seniors who remain eligible could still receive smaller benefits than originally promised under the program's design, depending on income levels and how the final calculations are implemented.

Details still being worked out

Gov. Sherrill, Assembly Speaker Coughlin, and Senate President Nicholas Scutari issued a statement Tuesday confirming a budget deal had been reached, but refused to confirm any details.

"The $60.7 billion budget provides tax relief to New Jerseyans who need it most while investing in our shared future with an expanded Child Tax Credit benefit for families," the statement read, "It offers the most property tax relief in the state's history, ensuring StayNJ is a sustainable benefit retirees can count on."

Many of the final details of the budget agreement are still being worked out ahead of the deadline.

Voting on the proposal could begin by the end of the week.

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