Bill
A 4971
NJEDA would run grants to cover operating costs of very small businesses for one-month-plus closures caused by public project delays, with up to 5% project-cost contributions from
Status / Timeline
- Introduced: October 21, 2024
- Key committee actions: Reported with amendments (Dec 16, 2024; Jan 16, 2025; May 15, 2025; June 19, 2025)
- Passed both houses: June 30, 2025 (Assembly 78-0-2; Senate 39-0)
- Governor: Issued an absolute veto (returned without approval) — received in Assembly Nov 13, 2025
- Current status: Vetoed (did not become law)
Purpose
- Create a New Jersey Economic Development Authority (NJEDA)‑administered grant program to assist small businesses that suffer economic loss due to extended closures caused by prolonged infrastructure or construction projects undertaken by the State or other public entities.
Key provisions (as amended)
- Program establishment: NJEDA must establish a "Small Business Interruption Grant Program" and a corresponding Small Business Interruption Grant Program Fund to administer and disburse grants.
- Eligible businesses: Under the June 19, 2025 amendments, a "small business" is defined as independently owned and operated, employing fewer than 10 individuals, with gross annual revenue of $1.5 million or less. (Earlier drafts targeted businesses in "low‑income communities" and used different size thresholds.)
- "Extended closure" definition: An extended closure is a business closure lasting one month or longer.
- Eligibility and timing: Businesses that suffered economic loss from prolonged infrastructure or construction projects — whether the event occurred before or after the bill’s effective date — may apply if they meet other EDA criteria.
- Grant amount determination: NJEDA is to determine grant amounts based on operating expenses incurred by a small business due to the extended closure (recent amendments emphasize operating expenses rather than projected revenue loss).
- Administration: NJEDA must develop application procedures and award grants subject to availability of funds. Under amendments, NJEDA is to collaborate with relevant State and local entities to ensure project timeframes include start dates to aid eligibility determinations.
- Funding mechanism / responsible‑party contribution: The bill requires the entity “responsible for the prolonged infrastructure or construction project” to contribute, for each project, up to 5% of the estimated total project cost to the program fund. The bill removed a direct $750,000 General Fund appropriation in committee amendments.
- Rulemaking: Committee actions removed (or narrowed) some statutory rulemaking requirements; NJEDA retains program design discretion.
Fiscal impact and effects
- Office of Legislative Services (OLS) estimate: Annual State expenditures would increase by an indeterminate amount to establish and run the program. Costs depend on program demand and any future appropriations.
- Potential revenue: NJEDA may collect application fees (amount indeterminate).
- Potential local/state expenditures: If a State, county, or local entity is deemed the “responsible” party for a project, that entity may face increased costs if required to contribute up to 5% of project estimates.
- Appropriation: Earlier versions included a $750,000 appropriation; committee amendments removed this direct appropriation and left funding levels unspecified.
Governor’s veto rationale (Nov 2025)
- The Governor returned the bill without approval, citing major concerns about its funding and enforcement mechanisms: the bill lacked a clearly feasible funding structure, did not define or provide a reliable method to identify or compel contributions from the “responsible entity,” and therefore might be unworkable. The veto message also argued NJEDA is better positioned to design time‑sensitive relief programs administratively.
Who would be affected
- Primary: Small, locally owned businesses meeting the statutory size/revenue test that suffer closures of one month or more because of prolonged public infrastructure or construction projects.
- Secondary: NJEDA (program administrator) and State, county, or local public entities that may be designated as “responsible” for projects and could be required to contribute to the fund; taxpayers if the Legislature appropriates funding.
Bottom line
A4971 sought to create an NJEDA‑run grant program to compensate very small businesses for operating costs tied to extended closures from prolonged public projects, with a funding component that would require project‑responsible public entities to contribute up to 5% of estimated project costs. The bill passed both houses in June 2025 but was vetoed by the Governor in November 2025 over unresolved funding and enforceability issues.
Compiled from official sources — confirm details with the bill’s official record.
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