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S 1462

Modifies NJBEST one-time grant to lifetime matching grant of $1,500 per beneficiary.*

2026-2027 Regular Session Introduced by Joe Cryan

The bill replaces a one-time NJBEST match with an annual grant up to $1,500 per account (3:1 match) until the beneficiary turns 14, funded by administrative fees.

Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 1462

Overview

  • Bill: S 1462
  • Session/Jurisdiction: New Jersey, 222nd Legislature
  • Title: Revises NJBEST one-time grant to annual grant of up to $1,500 for certain contributors
  • Purpose: Increase the NJBEST savings incentive from a one-time $750 match to an annual savings incentive grant of up to $1,500 per account, available annually until the designated beneficiary reaches age 14. Enables funding of these annual grants from administrative fees.

Main purpose and intent

  • To bolster the NJBEST program by converting the current one-time matching grant (up to $750) into an annual savings incentive grant of up to $1,500 per account.
  • The incentive is available to accounts with contributors whose adjusted gross income is between $0 and $75,000.
  • The annual grant continues each year until the designated beneficiary reaches age 14, with the grant amount tied to the annual deposits made by the account owner (three dollars for every dollar deposited, up to a $1,500 annual cap).

Key provisions and changes

  • Definitions updated (N.J.S.18A:71B-36): Clarifies terms used in the NJBEST program, including account, contributor, designated beneficiary, Higher Education Institution, Investment Manager, Qualified/Nonqualified withdrawals, and other related terms.
  • Grant structure change (N.J.S.18A:71B-36 and related statute): Replaces the current one-time $750 dollar-for-dollar match with an annual savings incentive grant:
    • Eligibility: NJBEST accounts with a contributor whose adjusted gross income is at least $0 and up to $75,000.
    • Grant amount: Up to $1,500 per account per year.
    • Calculation: The grant equals three dollars for every one dollar deposited into the account in that year.
    • Duration: Grants available for each year preceding the year the designated beneficiary turns 14.
  • Funding source: Allows the Higher Education Student Assistance Authority to use administrative fees to fund the annual grants. Administrative fees are defined as funds the authority charges or collects in relation to the NJBEST program and may be used for program administration, outreach, NJBEST scholarship funding, and savings incentive grants under this act.
  • Administrative action rules: The authority may adopt immediate rules, with a maximum initial effective period of 360 days, to implement the changes, subject to subsequent rulemaking standards.

Who/what is affected

  • Beneficiaries: Individuals opening NJBEST accounts with designations and beneficiaries who meet the income eligibility (AGI ≤ $75,000).
  • Contributors: Individuals or organizations contributing to NJBEST accounts and having withdrawal rights prior to disbursement.
  • NJBEST program administration: Higher Education Student Assistance Authority (HESAA) responsible for administering, funding, and implementing the revised grant structure, including using administrative fees as a funding source.
  • Higher education funding landscape: Potential impact on NJBEST savings behavior due to enhanced annual incentives.

Procedural and timeline aspects

  • Effective date: The act takes effect on the first day of the next year following enactment.
  • Interim actions: The authority may take anticipatory administrative actions before enactment to implement the changes.
  • Rulemaking: Immediate rulemaking authority granted to the Authority for up to 360 days from filing, after which full compliance with the Administrative Procedure Act applies.
  • Implementation: Requires alignment of NJBEST account operations with the new annual grant structure (deposits, eligibility, and annual renewal of grants until the beneficiary is 14).

Potential impacts and considerations

  • Financial impact: Higher annual grant cap ($1,500 per year) could significantly increase incentives for savers and overall program costs, funded in part by administrative fees.
  • Accessibility: Maintains eligibility for low- to moderate-income families (AGI up to $75,000), potentially broadening participation compared to the previous one-time grant.
  • Behavioral effects: The three-to-one match structure and ongoing annual grants may encourage larger and more consistent yearly deposits.
  • Administration: Increased funding flexibility via administrative fees could affect how fees are set and where funds are allocated within HESAA.

Sponsors: Co-sponsor Joe Cryan.
Recent actions: Reported from Senate Committee with Amendments (2nd Reading) and referred to Senate Budget and Appropriations Committee (May 2026).

Compiled from official sources — confirm details with the bill’s official record.

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