Since its creation in 1979, NJ TRANSIT has grown into the geographically largest public transit system in the United States. Over more than four decades, the agency’s financial structure has shifted in response to changing state and federal priorities—shaping service expansion, capital investment, system reliability, and long-term debt.

This report, authored by Matt Bond and Stephanie DiPetrillo, examines NJ TRANSIT’s financial history from its inception through the present day. Drawing on longitudinal data on ridership, debt service, and mechanical reliability, the research documents key fiscal periods, including fleet renewal efforts in the 1980s, rising debt and operating deficits in the 2000s, and capital asset deterioration during the 2010s. The analysis illustrates how funding decisions made decades ago continue to influence system performance today.

The report concludes with policy and administrative strategies to support a more sustainable investment model for public transit in New Jersey. Recommendations include strengthening dedicated revenue sources, leveraging transit-oriented development initiatives, and exploring value capture mechanisms. By situating current challenges within a historical context, the study provides a framework for improving NJ TRANSIT’s long-term solvency and reinforcing its role as an essential public service.