TRENTON, NJ (July 1, 2026) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy association with thousands of members in the Garden State, released the following statement by NFIB New Jersey State Director Eileen Kean in reaction to the New Jersey Legislature’s passage of the FY2027 state budget, which was signed into law by Gov. Mikie Sherrill late last night. The $60.7 billion spending plan the largest in the Garden State’s history.

“Governor Sherrill’s $60.74 billion dollar record-setting spending plan for Fiscal Year 2027 passed late yesterday, narrowly avoiding a midnight deadline before a government shutdown. Unfortunately, the budget process was without the transparency the governor promised during her Budget Address delivered before the Legislature in March.

“Fortunately, the so-called ‘Make Polluters Pay Act’ did not reach her desk. The ill-conceived legislation was vigorously opposed by NFIB and the business community, making it clear that retroactively penalizing fossil fuel companies by taxing them billions of dollars for legally providing essential products would drive companies out of the state. The bill would weaken the economy and adversely impact current and future job opportunities, all while incurring very costly litigation for taxpayers. Certain members of the Legislature refuse to understand that ultimately the consumer pays for all new taxes in the form of price and fee increases. This is a big issue for small business. NFIB released its first energy survey of its membership this year, showing that small businesses are deeply impacted by energy costs. Just 8% of small business owners reported that their energy costs had not increased in the last three years.

“While NFIB is thankful that the Medicaid tax does not impact small businesses employing fewer than 50 people, we are concerned with the precedent. It is unfair to tax a company because their employees and dependents receive their health insurance through a state run insurance product. An employer will be required to pay up to $750 per employee plus $750 per dependent for employees enrolled in NJ Family Care. It is a mandated pay-first-and-appeal-later process projected to raise $145 million annually. Not only is the tax onerous but the process will be a financial burden on the very businesses that make the engine of New Jersey’s economy run.

“NFIB supported S4534/A5325 that reduced business formation fees. Per the law signed with the budget, incorporation filing fees will be reduced by $25.00. While fee reductions are beneficial, is this really a step toward making New Jersey more affordable? With Trenton enacting yet another record-breaking level of state spending, the unprecedented spending growth of the last decade and the steep tax burdens in the state need a hard look by lawmakers if New Jersey is ever to become more affordable for taxpayers and Main Street businesses.”

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For over 80 years, NFIB has been the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit www.NFIB.com.