American Rescue Plan Act – State & Local Fiscal Recovery Funds

2021

Recovery Plan Performance Report

Date Submitted to U.S. Treasury: August 31, 2021

Philip D. Murphy, Governor 

Sheila Y. Oliver, Lt. Governor, Commissioner of the Department of Community Affairs

State of New Jersey
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Table of Contents

Page

Executive Summary........................................................................................................3

Section I. Use of Funds...................................................................................................4

Section II. Promoting Equitable Outcomes................................................................6

Section III. Community Engagement.........................................................................13

Section IV. New Jersey Labor Practices....................................................................16

Section V. Use of Evidence.........................................................................................18

Section VI. Table of Expenses by Expenditure Category.........................................20

Section VII. Project Inventory....................................................................................21

Section VIII. List of Projects as of July 31, 2021.......................................................22

Section IX. Ineligible Activities: Tax Offset Provision.............................................27
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Executive Summary

The Murphy Administration worked with the State Legislature in June 2021 to commit 

approximately $2.4 billion of New Jersey’s $6.2 billion in State Fiscal Recovery Fund (SFRF)

moneys as part of the State’s annual budget process. The Administration—led by the Governor’s 

Disaster Recovery Office and the Department of Community Affairs’ Division of Disaster Recovery 

and Mitigation—is now working to stand up over 40 individual programs that respond to the most 

urgent COVID-19 response and recovery needs across public health, negative economic impacts, 

and services to disproportionately impacted communities.

This $2.4 billion in funding primarily focused on programs that prevent evictions, ensure services 

for students with special needs who lost critical learning time last year, support small businesses 

that have been heavily impacted by the social distancing measures necessitated by the pandemic, 

and prepare our regional hospitals for the next public health emergency. The State is also making 

substantial investments into school facilities, the child care industry, and other impacted industries

in need of immediate assistance. 

To allocate the remaining approximately $3.8 billion, the Governor will make proposals to the 

Legislature’s six-member Joint Budget Oversight Committee (JBOC). The Governor is able to use 

$200 million in SFRF for pandemic-related programs of less than $10 million without JBOC 

approval.

From the outset, the Murphy Administration worked to address the most-immediate needs through 

conversations with State agencies and our partners in the State Legislature. The Administration 

has also established a public input process as it considers future programming. Over the course 

of several public “listening” sessions, with more planned for this fall, the State solicited input from 

hundreds of individuals and community organizations. To further maximize public awareness and 

participation in the planning process, the State has solicited comments through a public portal. 

Governor Murphy looks forward to working with Legislative partners to make critical, high-impact, 

and one-time investments in New Jersey’s restart and recovery.

Equity has been and will continue to be a foundational issue in the State’s use of Fiscal Recovery 

Funds. New Jersey’s initial strategy to promote equity for underserved, marginalized, and 

adversely affected groups has been to provide direct benefits and services to individuals and 

families who have the greatest and most immediate need as a result of the pandemic. For New 

Jersey, these groups include women, minorities, and the economically disadvantaged. As 

described herein, the State’s planned rental/utility assistance, education, small business, and 

public health support programs that provide direct aid to each of these disadvantaged groups. 

Going forward, the Murphy Administration will work with the Legislature and other partners to 

design programs geared toward the long-term equitable distribution of funding by ensuring that 

programs and projects consider the groups intended to be served, amplify public awareness of 

programs, and require data gathering to review program performance toward meeting the goal of 

serving traditionally marginalized communities.
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Section I: Uses of Funds

Governor Murphy and the Legislature worked together to dedicate $2.4 billion in SFRF towards 

New Jersey’s most immediate statewide needs as detailed in the following Expenditure 

Categories (“ECs”):

a. Public Health (EC 1)

a. The State’s public health commitments include $450 million to strengthen 

emergency preparedness infrastructure at Level 1 Trauma Centers in each of the 

State’s three regions, and $180 million for the School and Small Business Energy 

Efficiency Stimulus Program, which will promote the sustainability of HVAC and 

water systems within our schools and small businesses.

b. Negative Economic Impacts (EC 2)

a. The State’s commitments include $750 million for the Eviction Prevention Program, 

which includes funds for rental and utility assistance, and will complement other 

ARP funding for the Emergency Rental Assistance Program and Low-Income

Energy Assistance Program/ Low Income Household Water Assistance Program.

b. Commitments also include $135 million for small business relief grant programs. 

These funds continue the investment of successful State-funded and Coronavirus 

Relief Fund-supported programs from 2020. 

c. The State has also committed $25 million for Commuter and Transit Bus Private 

Carrier Relief and $15 million for the Meadowlands Complex to provide aid to the 

impacted travel and tourism industries. 

c. Services to Disproportionately Impacted Communities (EC 3)

a. The State’s commitments include $600 million to provide special education 

services to certain students above the age of eligibility for the next three school 

years. 

b. They also include $100 million for a Child Care Revitalization Fund, which will 

complement spending from the American Rescue Plan’s Child Care Stabilization 

Grants and Child Care Development Block Grant. Some of this spending will go 

27%

41%

30%

2%

Program Allocation by Expenditure Category

Public Health Negative Economic Impacts Disproportionately Impacted Infrastructure
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toward immediate staff recruitment and retention support, while some funds will 

enable longer-term facilities upgrades.

d. Premium Pay (EC 4)

e. Water, sewer, and broadband infrastructure (EC 5)

a. The State has committed $20.5 million for priority water and sewer infrastructure 

projects at the former army installation Fort Monmouth and in Camden City. 

f. Revenue Replacement (EC 6)
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Section II: Promoting Equitable Outcomes

Equity is a foundational issue for both the expenditure of SFRF and the Murphy Administration’s 

spending priorities. Per U.S. Treasury guidance, the State is expected to provide its efforts to date 

and intended outcomes to promote equity in the expenditure of SFRF. Because the State has 

only recently created many of its initial SFRF programs, and because program goals and intended 

outcomes are still being defined for programs to be created in the coming years, individual equity 

measures by program and for the overall portfolio will continue to be defined. 

Please allow the following to describe the State’s efforts to date to promote equitable outcomes

in our most urgent response and recovery programs. Subsequent annual reports will provide 

updates using qualitative and quantitative data on the State’s progression toward equitable 

outcomes across the entire SFRF portfolio of programs.

1) Initial Equity Goals

New Jersey’s initial strategy to promote equity for underserved, marginalized, and adversely 

affected groups has been to provide direct benefits and services to individuals and families who 

have the greatest and most immediate need. For New Jersey, these groups include care takers, 

minorities, and the economically disadvantaged. 

The largest current SFRF commitments support low-to-moderate income individuals who have 

been disproportionately impacted by the pandemic, particularly as it relates to housing and child

care supports, in addition to small business support.

Equitable 

Outcomes

Housing 

Assistance

Business 

Assistance

Child Care

Support 
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Eviction Prevention Program 

The $750 million Eviction Prevention Program provides rental and utilities assistance for those 

with very low (less than 30 percent of area median income (AMI) to moderate (between 80 and 

120 percent) incomes. This program is intended to ensure that recipients can remain in their 

homes to avoid homelessness or the prospect of eviction. Additionally, funds will be made 

available to ensure that low-income individuals and families have access to free legal services for 

eviction protection matters.

Evictions can be both a result and a cause of inequity for people of color. A recent Harvard Joint 

Center for Housing Studies report found that “Black and Hispanic renter households in particular 

were twice as likely as white renter households to be behind on housing payments and twice as 

likely to report being at risk of eviction.”1 These funds will reduce housing insecurity and mitigate

some of this risk. 

Child Care Revitalization Program

The $100 million Child Care Revitalization Program takes a three-fold approach in addressing 

inequities. First, this initiative ensures that child care providers serving low-income families can 

sustain and provide for the continuity of quality services for children. Additionally, this initiative will 

ensure continued access to child care services, in light of the fact that nearly 10 percent of child

care providers have closed operations temporarily or permanently, and will allow New Jersey the 

capacity to avoid waiting lists. Without this critical service, even the most essential workers—

from doctors, to truck drivers, to child protection workers—could be left unable to perform their 

critical duties in order to care for their children, creating a substantial risk to both the economic 

interests and the safety of our communities. 

Secondly, this initiative provides financial assistance to child care workers earning $50,000 or 

less annually. Child care workers have historically been placed among the lowest paying 

occupations, making minimum wage or slightly above minimum wage, in an industry comprised 

overwhelmingly of women and drawing significantly from underserved communities. According to 

U.S. Department Labor Data, approximately 93 percent of child care workers are women and 

approximately 45 percent are Black, Asian, or Latino. By supporting these essential workers, 

incentives are created to promote sustainability of small and micro business in the child care 

sector, 50 percent of which are minority-owned. This effort to address under-compensation within 

the industry, therefore, will positively impact disproportionately impacted communities. Beyond 

that, however, the effort to make child care more flexible will have a broader and more profound 

impact on marginalized communities either geographically separated from or otherwise unable to 

realize benefits of available child care resources.

Lastly, this child care initiative makes critical changes to the way child care is regulated and 

governed to ensure that the industry emerges from this crisis better situated both to meet the 

needs of future crises, and to encourage greater equity and compensation for child care providers 

and workers. 

1 Sophia Weeden, BLACK AND HISPANIC RENTERS FACE GREATEST THREAT OF EVICTION IN 

PANDEMIC, Joint Center for Housing Studies of Harvard University, Cambridge, MA, Published January 

11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-renters-face-greatest-threat-evictionpandemic
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Special Education Services Program

The SFRF funds will also be utilized to address the disproportionate impact of COVID-19 on 

students with disabilities by providing additional or compensatory special education and related 

services for those students with disabilities who exceed, or will exceed, the current age of eligibility 

for special education and related services over the next three school years. As the US Department 

of Education’s Office for Civil Rights noted, “for students whose needs require hands-on, face-toface interaction...COVID-19, in some cases, brought services to a stand-still.”2 The pandemic’s 

impact on educational instruction has, to varying extents, affected all school-aged children who 

were left with using remote platforms either intermittently or fully to learn core curriculum 

standards, but has been especially damaging to Special needs students. The ordered closure of 

school buildings, training facilities, and other places of business or employment where students 

with disabilities would otherwise receive critical adult-living skills, job training or coaching, and 

other crucial independent-living skills prevented students with disabilities, during their final year 

of eligibility, from receiving these necessary services. As such, this program intends to provide 

those missed services to students with disabilities, who but for this program, would no longer be 

eligible for such services.

School and Small Business Energy Efficiency Stimulus Program

The School and Small Business Energy Efficiency Stimulus Program is intended to promote the 

long-term sustainability of HVAC and water systems within our schools and small businesses This 

grant program requires that 75 percent of projects funded “are to be in schools and small 

businesses located in underserved communities.” Moreover, 25 percent of those small business 

are required to be minority and/or women-owned. New Jersey recognizes that many small 

businesses already did not have sufficient funding to replace or maintain HVAC and plumbing 

equipment. The COVID- 19 pandemic has only exacerbated impacted small business’ ability to

maintain efficient air and water systems. Therefore, this program seeks not only to reduce COVID19 transmission in New Jersey, but also to help update antiquated air and water systems to keep 

our students and residents healthy and safe. 

2) Awareness of SFRF Programs for all New Jersey Residents

The State is utilizing various avenues of communication and outreach to ensure awareness of 

SFRF funding. Namely, engaging stakeholder and community-based organizations to strengthen 

outreach efforts and using our county/municipal partners and non-profits who have regular and 

direct contact with residents to help with information flow. Moreover, numerous media and 

technology platforms are being used to promote awareness to include websites and social media. 

Agencies are also ensuring that marketing materials are translated in multiple languages and 

there is appropriate access to interpretation services. 

2 U.S. GOV’T ACCOUNTABILITY OFFICE, GAO-21-43, DISTANCE LEARNING: CHALLENGES 

PROVIDING SERVICES TO K-12 ENGLISH LEARNERS AND STUDENTS WITH DISABILITIES 

DURING COVID-19, at 9-11 (Nov. 2020), https://www.gao.gov/products/gao-21-43. 147 (reporting that 

“[s]chool officials told [GAO] that delivering related services—such as occupational therapy, physical 

therapy, or speech therapy—for students with complex needs was particularly difficult in a virtual setting,” 

and that other officials “raised concerns about students not receiving services in the same manner as 

they did prior to distance learning, including occupational and physical therapy that involved hands-on 

instruction from therapists or required specialized equipment unavailable in students’ homes”).
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Investments have been made in maintaining call centers where individuals can access information

7 days a week for 12 hours per day. Specifically, the Eviction Prevention Program allows callers 

to ask questions, submit pre-applications for assistance over the phone, and submit selfcertifications for eviction prevention over the phone – all of which can be accommodated in 10 

different languages. This mechanism is important to expand access to those who have 

traditionally had language and technology challenges.

Moreover, the Murphy Administration has invested in strengthening marketing and outreach 

efforts through the support of marketing agencies whose expertise facilitates targeted and 

evidence-based approaches. The State’s efforts to ensure equitable access to small business 

assistance resources were supported by several leading marketing agencies to coordinate 

targeted outreach to minority-, women-, veteran, and LGBTQ-owned businesses, particularly 

within economically distressed communities. 

3) Equitable Access and Distribution

The Murphy Administration recognizes the existence of historical and institutional processes and 

structures that challenge equitable access, benefits, and services among certain groups, and 

remain committed to making programs widely accessible to all New Jersey residents. Here are 

some of the measures taken by the State to ensure equal access to SFRF funded benefits and 

services.

One focus has been ensuring access to benefits by removing possible barriers to meeting 

deadlines. Specifically, rolling lottery systems are being used in our housing initiatives, as this 

system has been identified as a best practice for equitably distributing funds. Per the National 

Low Income Housing Coalition, “first-come, first-serve” processes have been shown to be more 

difficult for the lowest income and historically underserved households to access, and a series of 

rolling lotteries as opposed to one brief closed lottery period allows more time to conduct outreach 

and ensure all vulnerable households have the opportunity to apply. While this system is more 

labor-intensive to administer, it ensures greater equity of access to benefit for NJ residents.

Another approach has been to set-aside grant funding for specific populations. The New Jersey 

Economic Development Authority’s (EDA) Small Business Emergency Assistance Grant Program 

set aside a third of funding for businesses in census tracts eligible for New Market Tax Credits (or 

Opportunity Zone designations) because they meet the definition of a low-income community. 

This program will directly benefit businesses serving low-income and distressed communities 

where the poverty rate is 20% or above, or a median family income up to 80% of the statewide 

median. The goal is to improve economic conditions and strengthen equitable development in 

these communities that are prevalent with high unemployment rates and low property values.

The set aside approach has also been used as it relates to promoting environmental equity. The 

state’s School and Small Business Energy Efficiency Stimulus Program is intended to promote 

the long-term sustainability of HVAC and water systems within our schools and small businesses.

This grant program requires that 75 percent of projects funded be in schools and small businesses 

located in underserved communities, and requires that 25 percent of those small businesses be 

minority and/or women-owned.
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4) Driving Equitable Outcomes

Initial Programs:

Preliminarily, the Murphy Administration is committed to examining three key areas pertinent to 

promoting racial and economic equity through the use of State Fiscal Recovery Funds: 

• Housing opportunities, 

• Economic support for small businesses, and 

• Educational attainment.

These three areas are critical to closing gaps between groups and breaking down generational 

obstacles to equal opportunity. New Jersey has addressed each of these three areas in its first 

phase of State Fiscal Recovery Fund initiatives, which focus primarily on addressing the emergent 

needs of those most impacted by the pandemic. Unfortunately, those populations are frequently 

a part of historically marginalized communities. 

The intended outcomes sought by the implementation of policy and programs supported by these 

funds largely depend on the nature of the program. For instance, the Special Education Eligibility 

Extension seeks to close the gap created by school closures which put special needs students at 

a disadvantage, due to the loss of community based, transition services, or in-person learning. 

Small business grant programs are being tracked by the number and percentage of grants to 

minority and women-owned businesses, as well as by location to determine whether Opportunity 

Zones are being served to determine serve levels to these disadvantaged communities. Likewise, 

housing assistance programs that will serve low-income and disadvantaged communities will be 

tracked by the beneficiaries’ income levels and locations.

As it relates to economic equity, New Jersey has prioritized programs for low-income populations. 

The majority of the programs appropriated funding thus far have directly or indirectly impacted 

low to moderate income individuals and families. The Eviction Protection Program specifically 

targets those individuals who may have lost income, experienced reduced work hours, or are 

unemployed due to the fragility of the job market. The State has also ensured that low-income

populations have continued access to quality child care services by the various investments made 

to the child care industry, recognizing the critical role of child care services in the economy’s 

sustainability and growth. 

The State has also made significant investments in small businesses, especially those businesses 

owned by women and minorities, and those distressed and disadvantaged communities. These 

small business grants not only promote sustainability and growth of the businesses, but promotes 

the same goals in the communities served by the businesses. 

Directing Equitable Outcomes Moving Forward:

The State’s initial allocation of $2.4 billion in State Fiscal Recovery Funds responded to emergent 

needs that will naturally address equity in many underserved communities who were the most 

severely impacted by the pandemic. The expenditure of the remaining approximately $3.8 billion 

in SFRF will focus on the State’s long-term recovery from the pandemic but will continue to be 

directed toward prioritizing economic and racial equity. 

The State of New Jersey recognizes that there is no “one-size fits all” approach to equity. Each 

program, project, or intervention must be specifically tailored toward achieving specific equity 
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goals. However, driving equitable outcomes where they may not already exist requires direction 

from State leadership on how to account for, measure, and successfully follow through on 

addressing needs in underserved communities. To this end, the Murphy Administration will 

establish an overall Equity Strategic Plan to help agencies prioritize economic and racial equality 

as programs are being created and to provide guidance on how to effectively insert equity into 

programmatic decision-making. 

To support agencies in thoughtfully implanting economic and racial equity in their State Fiscal 

Recovery Fund programs, the Governor’s Disaster Recovery Office will provide:

1) A comprehensive “menu of options” to facilitate agencies in thinking through and 

responding to the equity mandate as programs are designed; and

2) Guidance on tracking and organizing data into existing financial reporting systems for 

equity reporting purposes.

At the point of initial program design, agencies will be asked to identify one or more equity 

categories that the proposed program will seek to address. The State’s critical equity categories 

may include race, ethnicity, and gender, as well as issue areas with clear disparities between 

residents (e.g., housing, education, access to health care).

Proposed programs will also be asked to identify the audience intended to be targeted, which 

may include: 

• Low-to-moderate income individuals/families; 

• Minority groups; 

• Unemployed/underemployed;

• Homeless or at-risk youth;

• Disabled/special needs population; 

• Populations with low educational attainment; 

• Small businesses/non-profits/community-based organizations; 

• Distressed communities; 

• Aging/seniors; or 

• Individuals in rural areas. 

Once equity groups and audiences are established, programs will be required to define the 

desired outcome of their intervention related to achieving equity. For instance, key outcomes may 

include: improving unemployment rates for certain groups of individuals, ensuring greater access 

to employment opportunities, or ensuring greater educational opportunities. 

Critically, programs will be required to establish evidence-based outcome measures. These 

outcomes will serve not only as a guide to promoting equitable outcomes going forward, but they 

will also serve as key benchmarks for the State of New Jersey to closely monitor with objective, 

quantifiable data to monitor our overall progress in the area of serving traditionally marginalized 

communities as part of our recovery from COVID-19. Evidence-based outcome measures may 

include:

• Examining participation/attrition rates;

• Examining service/benefit utilization analysis;

• Examining performance measures; and

• Geographical and census tract data analysis.
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To achieve these equity-based goals, the State will take several critical steps to ingrain equity into 

every level of SFRF decision-making. First, the State will designate “Equity Officers” at State 

agencies to report back to and receive direction from the Governor’s Disaster Recovery Office on 

planning, preparedness, and progress in meeting these equity goals. Second, the Governor’s 

Office will create an Equitable Recovery Working Group to foster a learning community of partners

within State government to create recommendations and input on the State’s Equity Strategic 

Plan. Finally, the State will consider allocating SFRF for evidence-based assets to help analyze 

and measure each program’s performance in terms of achieving its stated equitable goals.
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Section III. Community Engagement

The Murphy Administration held two public listening sessions in late July 2021. Over 200 

organizations were invited to give oral testimony to Administration senior staff on recommended 

uses of funding. The public was invited to send written testimony as well. Additional public 

listening sessions are planned for fall 2021. In addition to individuals and businesses providing 

input, the following diverse group of community-based organizations, non-profits, and advocacy 

groups submitted input:

• 32BJ SEIU (Service Employees International Union)

• ACLU-NJ

• Alliance Center for Independence (ACI)

• American Federation of Teachers New Jersey (AFT NJ)

• ArtPride New Jersey

• Association of State Colleges and Universities

• Bergen Volunteer Medical Initiative (BVMI)

• Bergen Volunteers

• Center for Great Expectations

• Chamber of Commerce Southern New Jersey (CCSNJ)

• Coalition of the Delaware River Watershed

• Communications Workers of America

• Community Options, Inc.

• Displaced Homemakers Network of New Jersey

• Employers Association of New Jersey

• Health Care Association of New Jersey (HCANJ)

• Higher Education Leadership Council

• International Federation of Professional and Technical Engineers

• Isles

• Latino Action Network

• Latino Action Network Foundation

• Mayo Performing Arts Center

• Metro Community Church

• Musconetcong Watershed Association

• New Jersey Black Issues Convention (NJBIC)

• New Jersey Business & Industry Association

• New Jersey Citizen Action

• New Jersey Coalition to End Domestic Violence
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• New Jersey Community Schools Coalition

• New Jersey Cultural Trust

• New Jersey Education Association

• New Jersey Emergency Medical Services Task Force

• New Jersey Future

• New Jersey Health Care Quality Institute

• New Jersey Hospital Association

• New Jersey Library Association

• New Jersey Policy Perspective

• New Jersey Restaurant and Hospitality Association

• New Jersey School Boards Association

• Policemen’s Benevolent Association Local #105

• Property Tax Fund Advocate

• Regional Plan Association

• Rutgers University

• Salvation and Social Justice

• The Family Success Institute

• The Somerville Historic Advisory Committee

• The Wallace House and Old Dutch Parsonage Association

• The Worker Institute, School of Industrial and Labor Relations, Cornell University

• Tri-State Transportation Campaign

• UFCW Local 360

• United Food and Commercial Workers (UFCW Local 464A)

• United Way of Northern New Jersey

State departments have also held their own engagement sessions. 

The Economic Development Authority has hosted webinars and partnered with advocacy groups 

such as chambers of commerce and county economic development associations. The Authority 

has hosted over 200 webinars since launching the Small Business Emergency Grant program 

last year. EDA also has a customer service call center that collects and feeds information back to 

the program design team and Authority leadership. 

The Department of Education has worked through its county offices and partner organizations 

including the Statewide Parent Advocacy Network to provide information regarding the Special 

Education Eligibility Extension. In addition, the Department released an initial broadcast memo 

and subsequent guidance regarding implementation of the program to all school districts.

The Department of Community Affairs plans to hire three regional Community-Based 

Organization to perform outreach and assist individuals to get enrolled in the Eviction Prevention 

Program. 

The Division of Family Development (DFD) in the Department of Human Services has held 

multiple roundtables and listening sessions with child care providers before and during the 

pandemic to capture feedback and understand how COVID impacted the landscape of the 

industry. In addition, DFD relies on each county’s community-based Child Care Resource and 

Referral (CCR&R) Agency that interfaces with local child care programs to gather feedback and 

relay relevant information to DFD. These forums have captured feedback in both oral and written 
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forms. In addition, DFD has conducted a number of surveys asking providers key questions to 

consider when making grant funding available.

As the State builds out the programs already appropriated Fiscal Recovery Funds, and considers 

additional appropriations with the Legislature, we will continue to engage with a diverse array of 

individuals and organizations to solicit input on effective ways to ensure that State Fiscal 

Recovery Funds serve people with significant barriers to services, including people of color, 

people with low incomes, limited English proficiency populations, and other traditionally 

underserved groups.
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Section IV. New Jersey Labor Practices

The State of New Jersey’s robust labor practices protect workers, improve the overall pool of labor 

talent, and ultimately lead to the successful completion of major public works projects by skilled 

laborers. Over the years, and particularly under Governor Murphy’s administration, New Jersey 

has made clear that public contracting is a privilege and not a right by instituting laws that 

guarantee some of the most rigorous worker protections in the country. The following is a brief 

overview of New Jersey’s existing labor practices that will be application to construction projects 

funded by American Rescue Plan State & Local Fiscal Recovery Funds.

I. Prevailing Wage Act

New Jersey’s Prevailing Wage Act, N.J.S.A. 34:11-56.25 et seq. (PWA), protects workers 

engaged in public works as well as their employers from the effects of unfair competition resulting 

from wage levels that are detrimental to the efficiency and well-being of all concerned. The Act 

requires the payment of minimum rates of pay to laborers, craftsmen, and apprentices employed 

on public works projects. Pursuant to the PWA, covered workers must receive the appropriate 

craft prevailing wage rate as determined by the Commissioner of the Department of Labor & 

Workforce Development. 

In addition to the PWA, the New Jersey State Building Service Contracts Act, N.J.S.A. 34:11-

56.58 et seq., establishes prevailing wage levels for employees of contractors and subcontractors 

furnishing building services in state-owned and state-leased buildings.

To effectively enforce the PWA, New Jersey’s standard contract “Terms and Conditions” require 

compliance with the appropriate State or federal prevailing wage. In almost all cases, the 

prevailing wage rates for various trade personnel are higher in New Jersey than the federal rates. 

II. Project Labor Agreements and the Public Works Contractor Registration Act

Pursuant to N.J.S.A. 34-11-52.38 et seq., a public entity must consider a Project Labor Agreement 

(PLA) that serves as a pre-hire collective bargaining agreement covering terms and conditions of 

a project greater than $5.0 million. A public entity may include a PLA if it finds that the project 

meets the requirements for a PLA, taking into consideration the size, complexity, and cost of the 

project. These requirements also include promoting labor stability and advancing the interests of 

the public entity in cost, efficiency, skilled labor force, quality, safety, and timeliness. 

Upon review of a State public works project, the New Jersey Department of Treasury’s Division 

of Property Management & Construction (DPMC) determines whether the statutory criteria for a 

PLA is met. In addition to the size, complexity, and cost of the project, DPMC considers not only 

the need for a reliable skilled labor pool needed to complete a project, but also the quality of the 

work needed, and the need to meet all safety, regulatory, and special requirements of the project. 

In many large, complex projects, the PLA will provide a certain level of confidence to the State 

that a project will be completed in an orderly and timely manner by a skilled labor pool capable of 

performing quality work and in an efficient and safe manner. In these projects, a PLA will be 

recommended and negotiated with the local Building Construction Trades Council using the 

standard State PLA. The project is then advertised with a requirement for a PLA and the 
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contractor agrees to abide by the PLA at contract award. The PLA then governs the employment 

of labor on the project from initiation until completion. 

On April 30, 2021, Governor Murphy strengthened the State’s existing PLA law by signing 

legislation that promotes workforce diversity in public works projects by requiring any public entity 

which includes a PLA in a public works contract to include PLA provisions requiring the provision 

of on-the-job or off-the-job outreach and training programs for minority group members, members 

of disadvantaged communities, and women. The PLA expansion bill also expands the 

permissible use of PLAs beyond contracts for building-based public works projects, thus allowing 

PLAs to also be used for highway, bridge, pumping station, water, and sewage treatment plant 

projects.

To further promote the development of the State’s workforce, New Jersey’s Public Works 

Contractor Registration Act (PWCRA), N.J.S.A. 34:11-56.48 et seq., requires any contractor, or 

any subcontractor or lower tier subcontractor of a contractor, to be registered with LWD when 

bidding on a public works contract. Governor Murphy signed a law in 2019 that mandates that all 

contractors engaging in public work must be participating in a United States Department of Labor 

“Registered Apprenticeship Program” to obtain an LWD registration under the PWCRA. Unlike 

other states, there is no opt out of the Registered Apprenticeship Program in New Jersey. This 

ensures that every dollar spent on public construction in New Jersey at the State, county, or 

municipal level is invested in expanding and training the current and future construction workforce.

III. Employee Wages and Benefits Protections

New Jersey’s laws ensure that its workers enjoy some of the strongest wage and benefits 

protections in the country. Every New Jersey worker is legally entitled to minimum wages 

(currently $12.00/hour, rising to $13.00/hour in 2022, $14.00/hour in 2023, and $15.00/hour in 

2024), earned sick leave, equal pay, temporary disability insurance, family leave insurance, and 

unemployment insurance. Further, New Jersey has some of the most expansive statutes 

protecting against civil rights violations and preventing discrimination in the workplace. See, e.g., 

New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 et seq.

In addition to strong legislation to protect workers, the Murphy Administration has more than 

doubled the number of Wage Hour investigators at the New Jersey Department of Labor & 

Workforce Development (LWD), and most recently created an Office of Strategic Enforcement 

and Compliance to coordinate resources and enforcement authorities throughout LWD and 

across state government to protect workers and compliant employers from the threats of wage 

theft, employee misclassification, workers compensation fraud, and dozens of other worker 

protection statutes.
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Section V. Use of Evidence

The Administration is currently reviewing suggestions for program proposals and receiving 

internal and external feedback to determine which eligible programs have moderate and strong 

evidence bases. Evidence of effectiveness will play an important role as the administration 

allocates remaining SFRF moneys. Departments would also be expected to demonstrate 

evidence and program results before receiving additional funds for program. 

The Administration is still developing its overarching strategy for evaluating programs and will 

consider setting aside funds to improve how it uses evidence in program design and review. Two 

programs that have or will incorporate evidence into program design are the Small Business

Emergency Assistance effort and Child Care Revitalization Fund. 

I. Small Business Emergency Assistance Grants

The Economic Development Authority has incorporated evidence through for its Small Business 

Emergency Assistance Grant program, one of the largest small business relief programs in the 

country. The Small Business Emergency Assistance Grant program was originally designed 

based upon data/evidence collected through several methods. First, in the very first days of 

COVID-19 pandemic closures, the NJEDA ran a large-scale small business impact survey that 

was promoted through numerous community organizations and business engagement channels. 

The survey instrument was launched in both English and Spanish and received more than 500 

responses. Second, the NJEDA team utilized NJ Department of Labor and Workforce 

Development data to estimate the size of various impacted cohorts of businesses (broken down 

by company size and industry). Based upon this data, the NJEDA developed the program design 

for its initial emergency relief grant programs. 

Since the launch of the first round of the grant program, NJEDA has been capturing thousands of 

data points about businesses that are applying for grant assistance. Staff continue to 

disaggregate and evaluate that application data to better understand the populations of impacted 

businesses. In some instances, data for companies that applied into multiple rounds of the 

program, will allow the Authority to evaluate how the emergency was evolving in different parts of 

the state and across different industries.

Full evidence-based program evaluation has not yet been undertaken as staff are still in the midst 

of executing program operations. However, at least one outside independent program auditor of 

the grant program found illustrative evidence that there was a positive correlation between 

whether a business received an emergency grant and whether they were still in operation. This 

evaluation was done utilizing following up surveys of businesses that applied for grants and 

comparing the outcomes of those that received funding vs. those that did not receive funding.3 

II. Child Care Revitalization Fund

The Administration is taking a multi-departmental approach to implement its $100 million Child 

Care Revitalization Fund. As the Economic Development Authority creates a grant program for 

facilities improvements, it is reviewing child care facilities literature commissioned by the Maher 

Charitable Foundation so it can target key environmental factors, including:

4

3 The analysis did not attempt to statistically measure the impact and did not control for other factors that 

would prove causation.

4 Sussman (2020). 
Page | 19

• Plumbing systems (e.g., bathrooms directly adjacent to classrooms)

• Physical space and classroom layout

• Natural playgrounds

• Activity areas, and

• Ambient environment

In consultation with the NJ Departments of Human Services and Children & Families, NJEDA 

may also incorporate the use of such validated and reliable instruments for measuring 

classroom environmental quality such as the Early Childhood Environment Rating Scale 

(ECERS). 
Page | 20

Section VI. Table of Expenses by Expenditure Category

Please see the table below in “Project Inventory” for a list of committed funds by Expenditure 

Category. As of July 31, 2021, the State has expended $254,782 under the Expenditure 

Category 7.1 Administrative Funds.

Category Cumulative 

expenditures to 

date ($)

Amount spent 

since last 

Recovery Plan

7 Administrative and Other

7.1 Administrative Expenses $254,782 N/A
Page | 21

Section VII. Project Inventory

Category1 Funds 

Committed

1 Expenditure Category: Public Health $630,000,000

Level 1 Trauma Centers $450,000,000

School and Small Business Energy Efficiency Stimulus Program $180,000,000

2 Expenditure Category: Negative Economic Impacts $975,000,000

Eviction and Homelessness Prevention Program $750,000,000 

Support for Industries Impacted by COVID-19 $135,000,000 

Child Care Revitalization Fund (Recruitment Grants) $30,000,000 

Commuter and Transit Bus Private Carrier Pandemic Relief and 

Jobs Program

$25,000,000 

World Cup and Meadowlands Complex $15,000,000 

Unemployment Processing Modernization and Improvements $10,000,000 

New Jersey Performing Arts Center – Operating Aid $5,000,000 

Legal Services of New Jersey $5,000,000 

3 Expenditure Category: Services to Disproportionately 

Impacted Communities

$707,000,000

Special Education Services $600,000,000 

Child Care Revitalization Fund $70,000,000 

County Special Service Schools $10,000,000 

Food and Hunger Programs $10,000,000 

Home Lead Paint Remediation $10,000,000 

Office of Eviction and Homelessness Prevention $5,000,000 

Motor Vehicle Commission Mobile Agency Units $2,000,000 

4 Expenditure Category: Premium Pay $0

5 Expenditure Category: Infrastructure $44,000,000

Fort Monmouth Water and Sewer $10,500,000 

Camden City Sewer Disconnect $10,000,000 

Lakes Management $10,000,000 

Water Quality Accountability Municipal Compliance (Cyber 

Security)

$5,000,000 

Local Government Infrastructure Planning $5,000,000 

Milltown Water Line Relining $2,000,000 

Dredging the Woodbridge Township Marina $1,500,000 

1 Please note that this chart reflects the intended use of funds. Each categorization is subject to change as the 

program details develop and the State determines eligibility.
Page | 22

Section VIII. List of Projects as of July 31, 2021

The following provides a brief description, expense category, and initial allocation for the State’s 

“Major Projects” (projects >$100 million) and “Additional Projects” (projects <$100 million). Per 

U.S. Treasury guidance, the State is expected to provide “key performance indicators” for each 

Major Program and to report out on the results of these key performance indicators. Because the 

State has only recently created many of these programs, and because program parameters are 

still being structured, there is not currently results on the performance of these programs. 

Likewise, the dollar amount of total project funding expected to be spent on evidence-based 

interventions for each project where it is required remains to be determined. Nonetheless, the 

State has included key performance indicators for Major Programs that are expected to be 

measured as programs launch. These key performance indicators will be tracked over the coming 

year and results will be included in the 2022 and beyond reports to U.S. Treasury. Future year 

reports will also include data on funding allocated toward evidence-based interventions.

Major Projects:

Project No. 1: Special Education Services Funding, $600 million

• Project Expenditure Category: EC3, Services to Disproportionately Impacted 

Communities

• Project Description: Requires local school districts to temporarily provide special 

education and related services to certain students who exceed, or will exceed, the current 

age of eligibility for special education services through the 2023 school year. The services 

shall be provided based on the student’s individualized education program for students 

who require additional or compensatory special education and related services, including 

transition services.

• Key Performance Indicators to be Measured: Number of students participating; level 

of achievement.

Project No. 2: Child Care Revitalization Fund, $100 million

• Project Expenditure Category: EC2, Negative Economic Impacts; EC3, Services to 

Disproportionately Impacted Communities.

• Project Description: Funds will be used to study and provide grants and technical 

assistance to licensed and registered child care providers to support workforce 

development and other improvements. The funds will be allocated as follows:

• $15.5 million to create workforce development supports and conduct a childcare 

landscape study.

• $54.5 million for the purpose of technical assistance to licensed child care 

providers and grants to child care providers for facilities improvements.

• $30 million for purpose of providing grants to licensed child care providers or 

employees of licensed child care providers.

• Key Performance Indicators to be Measured: Number of students served, number of 

facilities upgraded, impacts of facility upgrades in terms of students served or level of 

service, number of child care employees benefited, status of retention of child care 

employees.
Page | 23

Project No. 3: Level 1 Trauma Centers – Strengthening Health Emergency Preparedness, 

$450 million

• Project Expenditure Category: EC1, Public Health

• Project Description: This allocation provides funding to New Jersey’s three designated 

regional Level 1 Trauma Centers, University Hospital, Newark (north), Robert Wood 

Johnson University Hospital, New Brunswick (central), and Cooper Hospital/University 

Medical Center, Camden (south), for the purpose of strengthening regional health 

emergency preparedness infrastructure in order to be better prepared for future 

pandemics or other mass-scale events.

• Key Performance Indicators to be Measured: Increase in the hospital’s level of health 

preparedness and health care capacity.

Project No. 4: School and Small Business Energy Efficiency Stimulus Program, $180 

million

• Project Expenditure Category: EC1, Public Health

• Project Description: Establishes the School and Small Business Energy Efficiency 

Stimulus Program in the Board of Public Utilities. This program is designed to ensure that 

F lo HVAC systems are upgraded safely to prepare schools and small businesses for 

operating during the pandemic, to improve the general health and safety of the school and 

small business environments, and to create jobs across the State. Seventy-five percent 

of the projects funded are to be in schools and small businesses located in underserved 

communities. 

• Key Performance Indicators to be Measured: Number of schools/businesses 

participating overall, number of schools/businesses participating in underserved 

communities, quantifiable increase in overall energy efficiency.

Project No 5: Support for Entities Impacted by COVID, $135 million 

• Project Expenditure Category: EC2, Negative Economic Impacts

• Project Description: This program will provide assistance through grants to support 

eligible entities that experienced negative economic impacts caused by the COVID-19 

pandemic. The funding will be allocated as follows:

o $55 million for microbusinesses;

o $10 million for arts and culture for-profit organizations;

o $15 million for food and beverage establishments;

o $45 million for businesses and non-profit organizations; and

o $10 million for child care providers.

• Key Performance Indicators to be Measured: Number of schools/businesses 

participating overall, number of schools/businesses participating in underserved 

communities.

Project No. 6: Eviction and Homelessness Prevention Program, $750 million

• Project Expenditure Category: EC2, Negative Economic Impacts

• Project Description: Provides financial relief to certain landlords and tenants in response 

to COVID-19 pandemic, adjusts certain court fees; and makes appropriations This 

program is designed to protect very low-, low-, moderate-,and middle-income households 
Page | 24

from residential eviction based on non-payment or habitual late payment of rent, or a 

failure to pay a rent increase, that accrued between March 1, 2020 and August 2021. 

• Key Performance Indicators to be Measured: Number of people or households 

receiving eviction prevention services overall, number of people or households receiving 

eviction prevention services in underserved areas.

Additional Projects:

Project No. 7: Office of Eviction Prevention, $5 million

• Project Expenditure Category: EC3, Services to Disproportionately Impacted 

Communities

• Project Description: Establishes the “Office of Eviction Prevention,” which will be 

responsible for (1) the identification of all sources of financial assistance that could be 

used to prevent the eviction of residential tenants; (2) becoming knowledgeable about the 

application for each program; (3) identify and proposing remedies for the gaps in the 

overall assistance system. The office would also be responsible for compiling, publishing, 

and updating this information as well as working with non-profit or community-based 

organizations to enhance public awareness of the availability and means of accessing 

assistance.

Project No. 8: Commuter and Transit Bus Private Carrier Pandemic Relief and Jobs 

Program, $25 million

• Project Expense Category: EC2, Negative Economic Impacts

• Project Description: The private bus industry, which has historically been a key 

component of New Jersey’s transportation sector, has been devastated by the negative 

economic impacts of the pandemic. Accordingly, private bus companies account for about 

one-third of scheduled bus service in the state, based on passenger miles prior to the 

pandemic. While some private carrier routes are operated under contract with NJ Transit, 

many are operated on an at-risk basis by the private companies under their own authority. 

Private carriers operate routes in 15 New Jersey counties. The Commuter and Transit 

Bus Private Carrier Pandemic Relief and Jobs Program will provide private bus companies 

with assistance through grants to bring back employees and serve passengers on routes 

that without this relief would have had to be eliminated or cut back.

Project No. 9: World Cup and Meadowlands Complex, $15 million

• Project Expense Category: EC2, Negative Economic Impacts

• Project Description: This allocation of funds will be used by the New Jersey Sports and 

Exposition Authority to stimulate the region’s economy, reduce the impact of lost revenues 

directly related to COVID-19, and to host events that communicate the resumption of 

normal activities that attract tourists to the region. 

Project No. 10: Food and Hunger Programs, $10 million

• Project Expense Category: EC3, Services to Disproportionately Impacted Communities

• Project Description: Funding will be distributed to seven New Jersey food banks in order 

to continue providing families with food assistance during the pandemic. 
Page | 25

Project No. 11: Legal Services of New Jersey, $5 million

• Project Expense Category: EC2, Negative Economic Impacts

• Project Description: Legal Services of New Jersey will provide free legal assistance to 

individuals who were negatively impacted during the COVID-19 pandemic, including legal 

aid for eviction prevention and related issues. 

Project No. 12: Home Lead Paint Remediation, $10 million

• Project Expense Category: EC3, Services to Disproportionately Impacted Communities

• Project Description: The purpose of the programs is to identify and remediate leadbased paint hazards via interim controls and lead abatement to prevent elevated blood 

lead levels in children and pregnant women. The program targets municipalities in New 

Jersey with high reported incidences of elevated blood lead levels in children under age 

six.

Project No. 13: Unemployment Processing Modernization and Improvements, $10 million

• Project Expense Category: EC2, Negative Economic Impacts

• Project Description: The Department of Labor and Workforce Development has 

received an unprecedented number of unemployment claims caused by the pandemic’s 

negative economic impact that has stressed its operations. This allocation of funds will 

be used to assist in advancing modernization efforts and system improvements to facilitate 

claim payments, reduce potential fraudulent claims, or for other related uses.

Project No. 14: Motor Vehicle Commission Mobile Agency Units, $2 million

• Project Expense Category: EC3, Services to Disproportionately Impacted Communities

• Project Description: The Motor Vehicle Commission intends to deploy additional mobile 

agency units in underserved communities that were disproportionately impacted by the 

closure of local motor vehicle agencies due to the pandemic. The mobile units and 

additional resources will allow customers the ability to conveniently update their motor 

vehicle documents in their own communities and neighborhoods without having to visit a 

physical motor vehicle agency building. 

Project No. 15: New Jersey Performing Arts Center – Operating Aid, $5 million

• Project Expense Category: EC2, Negative Economic Impacts

• Project Description: Funding is expected to lessen the impact of COVID-19 on the 

operations of the New Jersey Performing Arts Center. 

Project No. 16: County Special Service Schools, $10 million

• Project Expense Category: EC3, Services to Disproportionately Impacted Communities

• Project Description: Funding towards New Jersey Joint Council of County Special 

Services School Districts.

Project No. 17: Camden City Sewer Disconnect, $10 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Funds committed for priority water and sewer infrastructure projects 

located in the City of Camden. 
Page | 26

Project No. 18: Lakes Management, $10 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Public Access Lake Stormwater Management Grants to 

Greenwood Lake Commission, Lake Hopatcong Commission, and other qualified lake 

management entities.

Project No. 19: Water Quality Accountability Municipal Compliance, $5 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Funds committed for priority water and sewer infrastructure 

projects.

Project No. 20: Milltown Water Line Relining, $2 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Funds committed for priority water and sewer infrastructure 

projects.

Project No. 21: Dredging the Woodbridge Township Marina, $1.5 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Funds committed for priority water and sewer infrastructure 

projects.

Project No. 22: Local Government Infrastructure Planning, $5 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Funds committed for priority water and sewer infrastructure 

projects.

Project No. 23: Water and Sewer – Fort Monmouth, $10.5 million

• Project Expense Category: EC5, Water, sewer, and broadband infrastructure

• Project Description: Funds committed for planning, survey, design, engineering, 

construction/installation and replacement of former Army owned water system and sewer 

system on the former Fort Monmouth military base. 
Page | 27

Section IX. Ineligible Activities: Tax Offset Provision

The State of New Jersey does not have any ineligible tax offsets for this reporting period.

Item Amount

a. Revenue-reducing Covered Changes for New Jersey $ 0