NJ Smart Choices

Building the movement for smart land use
and transportation planning in New Jersey.

NJ Funding Programs

Please send feedback, suggestions for improvements and corrections of information to Juliette Michaelson (jmichaelson@pps.org).

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Congestion Mitigation and Air Quality Program
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Note: New Jersey has three Metropolitan Planning Organizations. Click here to determine the appropriate one for your location.
Metropolitan Planning Organizations

Congestion Mitigation and Air Quality (CMAQ) funds are focused primarily on transportation control measures (TCMs). TCMs are strategies whose primary purpose is to lessen the pollutants emitted by motor vehicles by decreasing travel demand (e.g., reducing motor vehicle trips, vehicle-miles traveled, and use of single occupant vehicles) and encouraging more efficient facility use (e.g., reducing vehicle idling and stop-and-start traffic in congested conditions, managing traffic incidents expeditiously).

In addition, CMAQ funds may be used for projects that reduce vehicle emissions directly through vehicle inspection and maintenance programs and fleet conversions to less polluting alternative-fuel vehicles. Intermodal freight facilities, strategies to reduce particulate emissions, and public education and other related outreach activities in support of TCMs are also eligible. The funds are intended primarily for new facilities, equipment, and services aimed at generating new sources of emission reductions. Operating funds that support these projects are generally restricted to a 3-year period. The CMAQ enabling legislation explicitly prohibits funding of construction projects that provide new capacity for single-occupant vehicle travel, such as the addition of general-purpose lanes to an existing highway or a new highway at a new location.

For more information - NJTPA Counties:

For more information - DVRPC Counties:

For more information - SJTPO Counties:

Local Aid for Centers of Place
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Note: This program is only available to select municipalities. Read below for more details.
NJ Department of Transportation

This funding is a NJDOT program designed to assist municipalities who have formally participated in implementation of the New Jersey State Development and Redevelopment Plan (SDRP). Such participation entails designation as a Center by the State Planning Commission, preparation of a Strategic Revitalization Plan and Program, which has been approved by the Commission, or entrance into an Urban Complex, which has been approved by the Commission. The program provides the opportunity to apply for funds to support non-traditional transportation improvements that advance municipal growth management objectives as outlined in the action planning agenda of the municipality. Participation of municipalities in the SDRP ensures eligibility to compete for funds in the program. This program is administered by the NJDOT Division of Local Aid and Economic Development.

Typical projects include: pedestrian and bicycle improvements; adaptive reuse of abandoned railway corridors (pedestrian and bicycle trails); scenic or historic transportation improvements; landscaping/beautification of transportation related facilities (streetscape improvements); and rehabilitation of transportation structures.

In general, eligible projects are similar to Transportation Enhancements projects, but only SDRP municipalities are eligible to apply for funding. Allowable costs include preliminary engineering, design and construction. An annual solicitation for project proposals is sent to all eligible municipalities. This program is administered by the NJDOT Division of Local Aid and Economic Development in cooperation with the Bureau of Statewide Planning. All applications are forwarded to the Local Aid and Economic Development Office for review and evaluated by a Centers of Place Review Committee which includes representation from the New Jersey Economic Development Authority and Downtown New Jersey. A recommendation is made for final approval by the Commissioner of Transportation. Funding levels have varied from $750,000 to $3 Million depending upon appropriations by the Legislature.

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Local Finance Tools
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Municipal Governments
  • Special (Business) Improvement Districts: SIDs assess residents within set boundaries for additional services, such as park maintenance and public safety. They establish a partnership between property owners and businesses in downtown or commercial areas for the purpose of improving the business climate in a defined area. Impetus for the SID generally comes from business and property owners hoping to attract new customers by cleaning up sidewalks, improving parks, increasing lighting, etc. These business owners want better city services and are willing to pay for it -- within their neighborhood. In some places, they are willing to take on nongovernmental tasks, such as marketing, to supplement city services. There are currently an estimated 70 SIDs in the state of New Jersey. Refer to DCA's "SIDs: Loans & Grants" program for technical and financial assistance.
  • Tax Increment Financing: Tax increment financing can be used for a variety of purposes, including acquiring property to be resold at reduced prices and on-site improvements such as utilities, lights, repaving streets, and restoring neighborhood parks. TIF works like this: When a TIF plan is adopted, the assessed valuation of real property within a designated redevelopment area is frozen. Taxes are paid on the property at this base level while improvements to the area are made, new businesses are attracted, and property values rise. Typically, any increase in the assessed value of the property or additional sales tax revenues makes up the tax increment, which is then used to pay project costs or repay the bonds or other obligations that helped finance the project. By investing in a designated area, the TIF technique has aptly been described as a means of borrowing against the speculative gain that a project should bring.
  • Impact Fees: An impact fee is a one-time charge that private entrepreneurs, often developers, must pay to the local government in order to undertake their projects. In turn, the revenue from the impact fee finances public goods and services associated with the project, but which the developer would not provide voluntarily. Water and sewer lines, streets and bridges, and parks and recreational facilities are typical impact fee-funded projects.
  • User Fee Financing: Parking fees, dog tags, community college tuition, water bills, and park and recreation fees are just a few of the many different kinds of user fees collected by local governments. These funds can then be used to pay for transportation improvements, park maintenance and other municipal services.
  • Property Tax Financing: Perhaps because it is paid in a large lump sum check as opposed to small additions to each purchase, the property tax is the least popular of all state and local taxes. Yet they are an important source of revenue for local governments because they provide a steady source of revenue, less affected by downturns in the economy than either the sales or the income tax. In addition, property taxes are relatively easily administered at the local level, revenues can be accurately predicted, and the tax burden is fairly equitably distributed.

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Locally Initiated Bicycle Projects
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NJ Department of Transportation

This program provides funds for municipalities and counties for the construction of bicycle projects. These could include roadway improvements, which enable a roadway or street to safely accommodate bicycle traffic, or designated bikeways (signed bike routes, bike lanes or multi-use trails). The solicitation for project applications occurs at the same time as the solicitation for municipal aid projects. Applications are solicited, evaluated, and rated by NJDOT staff. Based on this evaluation, a list of recommended projects is proposed to the Commissioner of Transportation, who makes the final selection. This program is administered by the NJDOT Division of Local Aid and Economic Development.

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Recreational Trails Program
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NJ Department of Environmental Protection

The Recreational Trails Program provides financial assistance for developing and maintaining trails and trail facilities. Trails can be for non-motorized, multi-use and motorized purposes. Land on which a trail facility is to be funded must be public land or private land with an easement for public recreational use. Funding levels vary from year to year depending upon a federal appropriation, but maximum grant award is $25,000.

Funds may be used for: the maintenance of existing trails and trail facilities; the construction of new trails, including the acquisition of property and equipment; as well as state administrative costs related to the program. The program, including solicitation of projects and project selection, is administered by the Office of Natural Lands Management in the Department of Environmental Protection. State, county, local governments, and non-profit organizations are eligible for funds.

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Transportation, Community, and System Preservation (TCSP) Program
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Federal Highway Administration

The Transportation, Community, and System Preservation (TCSP) Program is a comprehensive initiative of research and grants to investigate the relationships between transportation, community, and system preservation plans and practices and identify provide sector-based initiatives to improve such relationships. States, metropolitan planning organizations, local governments, and tribal governments are eligible for discretionary grants to carry out eligible projects to integrate transportation, community, and system preservation plans and practices that:

  • Improve the efficiency of the transportation system of the United States;
  • Reduce environmental impacts of transportation;
  • Reduce the need for costly future public infrastructure investments;
  • Ensure efficient access to jobs, services, and centers of trade;
  • Examine community development patterns and identify strategies to encourage private sector development patterns and investments that support these goals.

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Transportation Community Development Initiative (TCDI)
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Note: This program is only available in Burlington, Camden, Gloucester, and Mercer Counties.
Delaware Valley Regional Planning Commission

The TCDI program is intended to assist in reversing the trends of disinvestment and decline in many of the region's core cities and first generation suburbs by:

  • Supporting local planning projects that will lead to more residential, employment or retail opportunities;
  • Improving the overall character and quality of life within these communities to retain and attract business and residents, which will help to reduce the pressure for further sprawl and expansion into the growing suburbs;
  • Enhancing and utilizing the existing transportation infrastructure capacity in these areas to reduce the demands on the region's transportation network; and
  • Reducing congestion and improving the transportation system's efficiency.

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Transportation Development Districts
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Transportation development districts are regional districts created voluntarily by municipal and/or county governments to fund transportation infrastructure costs, whether transit or roadway. Costs of infrastructure improvements are borne by the public sector (taxpayers) and private developers under a predetermined cost-sharing formula based upon traffic generation or other criteria associated with the development that occasions the need for additional investment in infrastructure.

The transportation development district must have a plan of development, and should be consistent with other land use and development plans. Zoning and build-out projections by each municipality (or other entity with zoning/land use authority) should govern the infrastructure required for the district; however, in practice, the development district plan often is put into place to foster more development and at a greater intensity than that zoned or desired by the municipality.

Nevertheless, as conceived, transportation development districts are a convenient and lawful method by which municipalities and counties can agree together on methods to raise revenue to fund infrastructure and other development-related costs, and to require major contributions from the private sector without fear of claims of unconstitutional ad hoc permit exactions or ultra vires government action.

Revenue to fund infrastructure costs is raised, in addition to developer contributions, from parking fees, transportation user surcharges, and similar new or increased tax or user charges. The advantage of a TDD is that local government entities usually do not have such revenue-raising power for transportation projects.

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Transportation Enhancements
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NJ Department of Transportation

The Transportation Enhancements program funds community-based projects that expand travel choices and enhance the transportation experience by improving the cultural, historic, aesthetic and environmental aspects of the transportation infrastructure. Several types of transportation-related projects are eligible, including: provisions for pedestrians and bicycles; safety and educational programs for pedestrians and bicyclists; scenic or historic highway programs; landscaping and other scenic beautification; historic preservation and site acquisition; rehabilitation of historic transportation buildings; preservation of abandoned railway corridors; control and removal of outdoor billboards; archeological planning; environmental mitigation of stormwater; establishment of transportation-related museums.

Any municipal or county government, non-profit organization or State agency may submit a Transportation Enhancement application. However, the municipal governing body in which the project is located must support it. All applications from local agencies and non-profit civic groups should receive municipal governing body endorsement. Regional projects should receive the endorsement of all affected counties and municipalities. A multi-discipline Committee reviews the projects and makes recommendations to the Commissioner of Transportation who makes final selections. Designated "Centers" receive additional consideration since acknowledged consistency with the goals of the State Development and Redevelopment Plan usually increases a project proposal's chance of success. This program is federally funded, and is administered by the NJDOT Division of Local Aid and Economic Development. In FY 2004, more than $11.5M was given to 27 New Jersey towns.

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Transportation Improvement Program
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Note: New Jersey has three Metropolitan Planning Organizations. Click here to determine the appropriate one for your location.
Metropolitan Planning Organizations

Each of New Jersey's three MPOs is responsible for preparing a Transportation Improvement Program, a list of all transportation projects and programs of the New Jersey Department of Transportation, the New Jersey Transit Corporation, and individual counties and municipalities, to be funded in the next three fiscal years. Together, the three TIPs form the STIP (Statewide Transportation Improvement Program).

In order for a local transportation project to receive federal or state funding, it must be included in the TIP.

For more information - NJTPA Counties:

For more information - DVRPC Counties:

  • Visit DVRPC's TIP Webpage.
  • Contact Charles D. Dougherty, Associate Director for Transportation Planning, (215) 238-2863.

For more information - SJTPO Counties: