Mayor Solomon & City Council Secure Improved Terms on Historic State Aid Package
Mayor Solomon & City Council Secure Improved Terms on Historic State Aid Package
Working with the New Jersey Department of Community Affairs and the Hudson Delegation, Jersey City secures better terms for the $105 million state loan and reducing long-term costs to taxpayers.
JERSEY CITY, N.J. (September 2, 2026) — Mayor James Solomon and the City Council today announced that Jersey City has negotiated significantly improved terms on the $105 million state loan at the center of the city's plan to resolve its inherited fiscal crisis. Reached in partnership with the New Jersey Department of Community Affairs (DCA) and Division of Local Government Services (DLGS), the revised agreement reduces the long-term cost to taxpayers and gives the city breathing room to put its finances in order.
Under the new terms, the loan will be:
- Repaid over 16 years instead of 10 — spreading the cost over a longer period so there is less yearly pressure on taxpayers.
- Payment forbearance until 2028 — meaning the city will not have to begin making payments on the loan until 2028. Jersey City gets roughly two years to stabilize its budget and get on firm footing before repayment begins, rather than adding a large new bill on top of an already difficult year.
As part of the agreement, Jersey City is committed to:
- A Comprehensive Five-Year Fiscal Recovery Plan – The Fiscal Recovery Plan must be approved by the DLGS and updated annually. It will include a comprehensive assessment of the structural causes of the city’s financial crisis, specific actions of fiscal reform, and quarterly fiscal benchmarks. Beginning in CY2027 and for a period of five (5) years, the City must submit its annual municipal budget to the State’s Local Finance Board for review and approval after budget introduction.
"During a time when Jersey City taxpayers are being asked to address the mismanagement of the previous mayor, these new terms and continued partnership across Jersey City, the Hudson County delegation, and in Trenton are a relief," said Mayor James Solomon. "Better terms mean a lower cost over time, and the forbearance means we get room to breathe while we do the hard work of balancing this budget. I want to thank our partners on the City Council, Governor Sherrill and the Department of Community Affairs for standing with us to get this done.”
“During the budget vote, I made the commitment to continue to push for better loan terms with the full support of the Council. I want to thank the City Council for working with our State elected officials, the staff at the DCA, and the Administration to help negotiate improved loan terms,” says Council President Denise Ridley. “The Council is committed to remaining at the table with the State to continue to advocate for additional relief, bring needed resources to residents, and foster solid relationships that assist in future loan negotiations.”
Additionally, members of the City Council are working with members of the Hudson County delegation to host resource fairs across Jersey City aimed at helping residents access tax assistance and utility support programs.
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Nathaniel Styer
Communications Director | City of Jersey City
[email protected]