Since its establishment in 1979, NJ TRANSIT has operated the geographically-largest public transit system in the United States, spanning more than 5,000 square miles across New Jersey. The transit agency was created under the New Jersey Public Transportation Act of 1979 in response to declining service quality and rising maintenance costs among the state’s numerous private bus and rail operators. Over its 46-year history, NJ TRANSIT has consolidated struggling transit companies and expanded service with projects like the Hudson-Bergen Light Rail, the River Line, and new bus routes.

Click for the Report

In October 2025, NJ TRANSIT expressed interest in funding a report on the evolution of public transit funding in New Jersey to document how past decisions have shaped current outcomes. This study will draw upon historical documents and academic literature to produce a report detailing the progression of transit in New Jersey, with a focus on the history of financing, funding, and implementing transit projects and improvements. The report will then include strategic policy recommendations that draw upon lessons learned from past decisions as well as academic literature and best practices to inform future decision-makers in New Jersey.

The main objectives of this study are to:

• Document the historical evolution of public transit in New Jersey
• Analyze the development and outcomes of transit funding and financing mechanisms
• Identify policy recommendations and strategies for obtaining a stable funding base