On April 21, 2025, New Jersey Department of Education (NJDOE) Commissioner Kevin Dehmer testified before the Assembly Budget Committee to present the Department’s FY 2026 budget proposal. The proposal outlines a $22.2 billion investment in education. This includes $12.1 billion in direct K-12 school aid—representing a nearly $400 million increase from the prior fiscal year and a 48% increase since Governor Murphy took office. Members of NJDOE’s senior leadership joined Commissioner Dehmer to highlight the Department’s priorities, including school funding stability, accelerated learning, and the expansion of preschool access.
NJDOE is responsible for providing guidance, oversight, and support for New Jersey’s public education system, spanning from early childhood through secondary education. The Department manages funding formulas for schools, reviews and endorses curricula, enacts state and federal education policy, and provides resources to educators and administrators to aid students’ experiences. NJDOE is also at the center of academic recovery efforts, mental health programming, special education supervision, and the implementation of educational equity policies.
A key emphasis of this year’s budget is preserving stability within New Jersey’s school funding formula. With full formula funding achieved through FY 2025, the Department now sets forth refinements intended to improve predictability and responsiveness to local needs. These proposed changes include incorporating multiple years of property valuation and income data to smooth fluctuations in local share calculations, as well as modernizing cost estimates to reflect actual school expenditures and evolving resource demands, including those related to mental health and school security. In response to stakeholder concerns, the FY 2026 formula also proposes shifting the calculation of special education aid away from the census-based method to one based on actual enrollment. Notably, the FY 2026 proposal limits aid reductions to 3% for core aid categories and makes funding data available to districts earlier than it previously has been.
Early childhood education remains a significant area of investment. The FY 2026 budget allocates $1.3 billion for preschool programming, including $10 million in new funding to expand access to additional districts. Since FY 2018, preschool funding has increased by more than $550 million, supporting programs in more than 290 districts and serving nearly 80,000 children. These efforts bring the state significantly closer to universal preschool access for 3- and 4-year-olds.
The Department is also continuing to invest in academic recovery through targeted interventions. The budget proposes $7.5 million in new grant funding for high-impact tutoring, which provides intensive academic support multiple times a week in small-group or one-on-one settings. Nearly 300 districts have already implemented this initiative, reaching over 70,000 students. Early assessments indicate learning gains in participating districts. To complement these efforts, NJDOE will continue to support literacy initiatives tied to recent landmark legislation that requires universal screening for kindergarten through third grade, alongside the formation of a new Office of Learning Equity and Academic Recovery.
The FY 2026 proposal also includes $3 million in new grants to promote phone-free school environments, aimed at supporting student mental health and reducing classroom distractions. This builds on a broader commitment to student well-being, particularly in response to the lingering impacts of the COVID-19 pandemic. NJDOE is additionally sustaining its investments in computer science education, which has expanded dramatically in recent years. Over 86% of New Jersey high schools now offer computer science courses, up from 59% in 2018, thanks to more than $9 million in strategic funding.
During the hearing, members of the Assembly Budget Committee questioned whether there was specific funding allocated for student mental health. Commissioner Dehmer responded by emphasizing that the FY 2026 budget includes multiple initiatives supporting mental health services, such as funding for school psychologists and social workers. He added that the Department conducts routine annual reviews of each district’s budget, which include user-friendly tools that clearly show how much each school is spending on mental health. There were additional legislator inquiries about the timeline for implementing Medicaid-funded behavioral health services in schools. The Commissioner clarified that multiple state agencies must be involved in the rollout and that the plan is still awaiting Medicaid approval. He noted that once the plan is approved, the Department will begin revising relevant regulations, but it remains uncertain whether the funding will be available by the beginning of the 2025-2026 school year.
Commissioner Dehmer concluded his testimony by acknowledging the role of federal policy in shaping the state’s education landscape. While some federal issues remain in litigation, he reaffirmed NJDOE’s focus on preserving critical federal funding and ensuring New Jersey remains a national leader in public education. Despite fiscal pressures, the FY 2026 budget reaffirms the state’s deep investment in its students and its commitment to supporting schools, teachers, and families with the resources necessary to provide a world-class education.
New Jersey Schools Development Authority (SDA) CEO Manuel Da Silva also testified, reaffirming the SDA’s ongoing efforts to meet the state’s school facility needs. He explained that the budget includes $350 million in funding from the 2022 Debt Defeasance and Prevention Fund for projects that enhance educational environments and support growing student populations. Da Silva reported on significant projects as well as advancements on nearly 20 capital plan projects using design-build methods. Da Silva concluded by stating the need for long-term planning for future land acquisition and reaffirmed SDA’s commitment to collaborating with the Murphy administration and the state legislature to improve school infrastructure statewide.
[View source.]
