New Jersey A 4001: Appropriates $2.5 million to DOBI to reimburse joint insurance funds for COVID-19 surveillance testing.

Bill Text

A4001 

ASSEMBLY, No. 4001 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman� KATIE BRENNAN

District 32 (Hudson)

Assemblyman� CHIGOZIE U. ONYEMA

District 28 (Essex and Union)

SYNOPSIS

���� Authorizes withholding of funds due to federal 
government if federal government withholds funds from State in contravention of 
a court decision.

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act authorizing the withholding of funds due to the federal 
government and supplementing Title 52 of the Revised Statutes.

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

���� 1.� a.� As used in P.L.��� , 
c.��� (C.������ ) (pending before the Legislature as this bill): 

���� �Department� means the 
Department of the Treasury.

���� �Federal government� means the 
United States of America, and any office, department, board, commission, 
bureau, division, corporation, agency, or instrumentality thereof.� 

���� �State agency� means any of 
the principal departments in the Executive Branch of State government, and any 
division, board, bureau, office, commission, or other instrumentality within or 
created by such department, the Legislature of the State and any office, board, 
bureau, or commission created by the Legislative Branch, the Judicial Branch of 
the State Government, and any independent State authority, commission, 
instrumentality or agency.

���� �State Treasurer� means the 
Treasurer of the State of New Jersey.

���� b.� Not more than 15 days 
following the enactment of P.L.��� , c.��� (C.������ ) (pending before the 
Legislature as this bill), and on the first day of each month thereafter, the 
chief executive officer of every State agency shall submit a report to the State 
Treasurer, in such form and manner as determined by the State Treasurer, 
setting forth:� 

���� (1) any federal funds owed to 
the State agency by the federal government and for which the nonpayment of 
those funds by the federal government is in contravention of a decision or 
order issued by a court of competent jurisdiction; and 

���� (2) any funds the State agency 
anticipates will be due and owing by the State agency to the federal government 
in the 12 months next following the date of enactment of P.L.��� , c.��� 
(C.������ ) (pending before the Legislature as this bill), including, but not 
limited to:

���� (a) employer taxes owed to the 
federal government by the State; 

���� (b) federal employment taxes 
withheld by the State on behalf of the federal government;

���� (c) offsets for federal debts; 

���� (d) backup withholding of 
federal taxes; and

���� (e) federal grant repayments.

���� c.� Not more than 30 days 
following the deadline for the submission of each report required pursuant to 
subsection b. of this section, the State Treasurer shall prepare and submit to 
the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to 
the Legislature, a report containing all of the information submitted by each 
State agency, including any such information applicable to the department.� All 
State agencies shall cooperate with the department and make available to the 
department such information and assistance necessary to effectuate the purposes 
of P.L.��� , c.��� (pending before the Legislature as this bill).

���� d.� Following the submittal of 
any report required pursuant to subsection c. of this section that indicates 
any federal funds are owed to the State in contravention of a decision or order 
issued by a court of competent jurisdiction, the Governor may direct the State 
Treasurer, in consultation with the Director of the Division of Budget and 
Accounting in the Department of the Treasury, to withhold payments to the 
federal government.� The total amount withheld shall not exceed the amount of 
federal funds owed to the State in contravention of a decision or order issued 
by a court of competent jurisdiction, specified in the report submitted by the 
State Treasurer pursuant to subsection c. of this section.

���� e.� Any moneys appropriated 
for payments to the federal government that are withheld pursuant to subsection 
d. of this section shall be held in reserve and lapse to the General Fund upon 
the conclusion of the State fiscal year in which the monies are appropriated, 
provided, however, that the total amount of reserved and lapsed moneys shall 
not exceed amount of federal funds owed to the State in contravention of a 
decision or order issued by a court of competent jurisdiction, as described in 
the report submitted by the State Treasurer pursuant to subsection c. of this 
section.

���� 2.� This act shall take effect 
immediately.

STATEMENT

���� This bill authorizes the State 
to withhold State payments to the federal government when the federal 
government is found by a court of competent jurisdiction to be in noncompliance 
with an order or decision requiring