New Jersey has met a crucial deadline to obligate the remaining funds from the $6.2 billion received through the American Rescue Plan Act ARPA. The Dec. 31 deadline, part of the nearly $2 trillion federal relief law, required states to allocate all remaining unspent funds for specific purposes.
Governor Phil Murphy’s administration confirmed the state has complied with this requirement, though details about the final allocations are set to be disclosed later this month.
The federal funds were primarily allocated for affordable housing, anti-eviction programs, water infrastructure improvements, and K-12 public school enhancements.
Additional spending supported economic recovery efforts, including tourism promotions and Jersey Shore boardwalk upgrades. Other portions funded park improvements, community centers, and initiatives like the 2026 FIFA World Cup bid.
Certain uses were prohibited, including covering public-worker pension obligations or offsetting revenue losses from tax cuts. Despite these restrictions, flexibility was allowed for other uses. Some funds had been earmarked but faced delays, such as a $10 million allocation for a proposed arts museum in Jersey City.
Senator Declan O’Scanlon had called for more transparency on how the remaining funds were allocated, as earlier reports showed some unspent funds. However, the state was working to redirect any unspent amounts to eligible operations before the deadline.
The next key deadline for New Jersey is December 31, 2026, when all ARPA funds must be fully spent.