With just months until StayNJ officially begins, a report by New Jersey Policy Perspective is warning that the program — at least in its current form — could be in for trouble as uncertainty around federal funding persists.
StayNJ, a property-tax reduction program for New Jersey senior citizens, was first introduced in May 2023 by Assembly Speaker Craig Coughlin. The initiative aims to reduce the tax burden for older New Jersey residents who might otherwise move to states with lower costs of living.
Funding to launch StayNJ was included in the budget law signed that June for fiscal year 2024, again in the budget plan for fiscal year 2025 and the final tranche of money — about $280 million — was included in the fiscal year 2026 budget proposed by Gov. Phil Murphy in February.
How would StayNJ function?
Trenton, NJ — January 14, 2025 — Assembly speaker Craig Coughlin before New Jersey Governor Phil Murphy entered the Assembly Chamber to deliver the State of the State address.
The program is geared toward keeping seniors in New Jersey during their golden years by cutting property taxes for those 65 and older with incomes of up to $500,000. It is projected that 90% of eligible recipients have incomes of less than $200,000.
Including the funding the spending plan that goes into effect July 1, the state has set aside $600 million for the program and is expected to cover payments to eligible recipients from January through June 2026, which is when the state’s 2026 fiscal year ends.
Treasury officials confirmed there is no “buildup plan” for fiscal year 2027, which is estimated to cost $1.2 billion annually.
According to Peter Chen of New Jersey Policy Perspective, the program disproportionately benefits wealthy homeowners and fails to assist senior renters
Chen suggests that changes such as lower income limits, focusing on low and moderate income households and increasing the tax credits offered to seniors through the ANCHOR program would benefit the state’s most vulnerable.
“By refocusing the program on those most likely to experience housing insecurity and adjusting benefit levels for wealthier households, New Jersey can deliver targeted relief without exceeding its budget capacity,” he said in the report.
Murphy’s 2026 NJ budget: What’s next for ANCHOR, StayNJ and Senior Freeze?
How would federal budget cuts impact StayNJ?
Chen noted that proposed federal budget cuts are likely to negatively impact low-income residents in New Jersey.
He suggested lowering the maximum eligibility threshold for StayNJ to $150,000 which would make it consistent with ANCHOR and lowering the maximum benefit from $6,500 to $5,000 to make the benefit closer to the state’s average property tax bill.
Those proposals would cut the cost of Stay NJ by $520 million, he said.
Chen also advocated for increasing the ANCHOR benefit for seniors to benefit a wider range of residents. He noted that more than 25% of seniors rent but would receive no new benefit from Stay NJ, including more than 50% of Hispanic/Latinx and Black seniors.
The suggestions in Chen’s report “offer policymakers a way to refine Stay NJ without abandoning its core intent.”
Chen said the state is looking at a “real fiscal cliff” and with the state in the midst of budget negotiations as concerns persist about the structural deficit this is a “big ticket on the horizon” that should be “carefully evaluated to ensure that the state is able to meet all its obligations.”
“Our criticisms of the StayNJ program have been clear from the outset but I think there’s a recognition that the property tax credit programs are popular,” Chen said. “At the very least what we should be doing, if we’re going to have this program, is slim it down to a responsible level and ensure that benefits are not going to the wealthiest New Jerseyans.”
Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com
This article originally appeared on NorthJersey.com: NJ property tax relief program for seniors StayNJ could be in trouble