New Jersey S 4220: Authorizes NJ Infrastructure Bank to expend certain sums to make loans for environmental infrastructure projects for FY2027.

Bill Text

S4220 

SENATE, No. 4220 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� RAJ MUKHERJI

District 32 (Hudson)

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

Senator� NICHOLAS P. SCUTARI

District 22 (Somerset and Union)

Assemblywoman� MARISA SWEENEY

District 25 (Morris and Passaic)

Assemblyman� ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman� GABRIEL RODRIGUEZ

District 33 (Hudson)

Co-Sponsored by:

Senators Testa, Bramnick, Space, Singer, Pennacchio, 
Holzapfel, A.M.Bucco, Steinhardt, Schepisi, Polistina, Tiver, Corrado, Henry, 
Assemblymen Calabrese, Singh, Assemblywoman Brennan, Assemblymen Wainstein and 
Sampson

SYNOPSIS

���� Authorizes NJ Infrastructure Bank to expend certain 
sums to make loans for environmental infrastructure projects for FY2027. 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act authorizing the expenditure of funds by the New Jersey 
Infrastructure Bank for the purpose of making loans to eligible project 
sponsors to finance a portion of the cost of construction of environmental 
infrastructure projects, and making an appropriation.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1. �a. �The New Jersey 
Infrastructure Bank, established pursuant to P.L.1985, c.334 (C.58:11B-1 et 
seq.) (hereinafter referred to as �the trust�), is authorized to expend the 
aggregate sum of up to $3.85 billion and any uncommitted balance of the 
aggregate expenditures authorized pursuant to section 1 of P.L.2000, c.93, 
section 1 of P.L.2001, c.224, section 1 of P.L.2002, c.71, section 1 of 
P.L.2003, c.159, section 1 of P.L.2004, c.110, section 1 of P.L.2005, c.197, 
section 1 of P.L.2006, c.67, section 1 of P.L.2007, c.140, section 1 of 
P.L.2008, c.67, section 1 of P.L.2009, c.101, section 1 of P.L.2010, c.62, 
section 1 of P.L.2011, c.95, section 1 of P.L.2012, c.38, section 1 of 
P.L.2013, c.94, section 1 of P.L.2014, c.26, section 1 of P.L.2015, c.107, 
section 1 of P.L.2016, c.31, as amended by P.L.2017, c.13, section 1 of 
P.L.2017, c.142, as amended by P.L.2017, c.327, P.L.2018, c.84, as amended by 
P.L.2019, c.30, section 1 of P.L.2019, c.192, as amended by P.L.2019, c.515, 
P.L.2020, c.48, as amended by P.L.2021, c.22, section 1 of P.L.2021, c.204, as 
amended by P.L.2021, c.316, P.L.2022, c.100, as amended by P.L.2023, c.5, 
P.L.2023, c.119, as amended by P.L.2023, c.343, P.L.2024, c.41, as amended by 
P.L.2025, c.8, and P.L.2025, c.125, as amended by P.L.2025, c.183, for the 
purpose of making loans, to the extent sufficient funds are available, to or on 
behalf of local government units or public water utilities (hereinafter 
referred to as �project sponsors�) to finance all or a portion of the cost of 
construction of environmental infrastructure projects listed in sections 2 and 
4 of this act.

���� b.� The trust is authorized to 
increase the aggregate sums specified in subsection a. of this section by:

���� (1) the amounts of capitalized 
interest, interest accrued pursuant to a short-term or temporary loan made to a 
project sponsor pursuant to the Interim Environmental Financing Program, 
administrative expenses associated with any federal funding programs, if 
applicable, and the bond issuance expenses as provided in subsection b. of 
section 7 of this act;

���� (2) the amounts of reserve 
capacity expenses and debt service reserve fund requirements as provided in 
subsection c. of section 7 of this act;

���� (3) the interest earned on 
amounts deposited for project costs pending their distribution to project 
sponsors as provided in subsection d. of section 7 of this act;

���� (4) the amounts of the loan 
origination fee as provided in subsection e. of section 7 of this act;

���� (5) the amount appropriated to 
the Department of Environmental Protection for the purpose of making 
zero-interest and principal-forgiveness loans pursuant to section 3 of P.L. , 
c. (pending before the Legislature as Senate Bill No. 4221 of 
the 2026-2027 session and Assembly Bill No. of the 
2026-2027 session) in connection with the project costs of a particular project 
sponsor, to the extent the priority ranking or an insufficiency of funding 
prevent the department from meeting program demand as provided in subsection f. 
of section 7 of this act; and

���� (6) any funds transferred to 
the trust by the department pursuant to paragraph (21) of subsection a. of 
section 1 of P.L. , c. (pending before 
the Legislature as Senate Bill No. 4221 of the 2026-2027 session and Assembly 
Bill No. of the 2026-2027 session).

���� c.� (1) Of the sums made 
available to the trust from the �Water Supply Trust Fund� established pursuant 
to subsection a. of section 15 of the �Water Supply Bond Act of 1981� 
(P.L.1981, c.261), pursuant to P.L.1997, c.223, the trust is authorized to 
transfer such amounts to the Department of Environmental Protection as needed 
for drin