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Municipal Aid applications being accepted for $165 million in FY27 grants
April 20, 2026
by Local Aid Economic Development

Municipal Aid applications being accepted for $165 million in FY27 grants

Transit Village, Bikeways, and Safe Streets to Transit applications also being accepted

(Trenton) – The Sherrill Administration today announced the grant solicitation period for NJDOT’s Fiscal Year 2027 State Aid programs is now open. Starting today, Monday, April 20, applications will be accepted for Municipal Aid, Transit Village, Bikeway, and Safe Streets to Transit programs through July 1, 2026.

Municipal Aid is being increased by $15 million in Fiscal Year 2027. On March 26, 2024, legislation was signed to renew the State’s Transportation Trust Fund (TTF) for five more years. With the renewal of the TTF, the funding for Local Aid programs to counties and municipalities will increase by $15 million for the Municipal Aid program for this fiscal year.

“Governor Sherrill and the New Jersey Department of Transportation are committed to ensuring New Jersey’s entire transportation network is reliable, efficient, and modern, and that means investing in local infrastructure,” NJDOT Commissioner Priya Jain said. “Municipal Aid grants, along with our Transit Village, Bikeway, and Safe Streets to Transit programs, allow counties and municipalities to make safety enhancements that improve the quality-of-life for everyone.”

NJDOT’s grant cycles allow municipalities to incorporate awarded projects into upcoming municipal budgets to ensure that important infrastructure projects get to construction sooner. Grant awards are expected to be announced in November. The following is a brief description of each grant program:

  • Municipal Aid – This $155 million program, with an additional $10 million in Urban Aid, provides funding for local transportation projects for a total of $165 million. Municipalities are encouraged to consider projects that support walking and biking safety.
  • Transit Village* – This program is open to the 37 municipalities that have been designated as Transit Villages by the Commissioner of Transportation and the inter-agency Transit Village Task Force. A total of $1 million is available to fund traditional and non-traditional transportation projects that enhance walking, biking and/or transit ridership within a half mile of the transit facility. The approved Transit Village municipalities are provided in the following link: http://www.state.nj.us/transportation/business/localaid/transitvillagef.shtm
  • Bikeways* – This $1 million program is intended to fund bicycle projects, which create new Bike Path Mileage. This program encourages new bikeways that are physically separated from motorized vehicular traffic by an open space or barrier. Counties and municipalities are eligible.
  • Safe Streets to Transit* – This program encourages counties and municipalities to construct safe and accessible pedestrian linkages to transit facilities to promote transit usage for all. A total of $1 million is available for grant awards.

*Note: An additional $9.44 million was provided in the FY 2026 State Budget to disperse among these programs for a total of $12.44 million allowing the award of many more grants and more fully funded grants.

In January 2025, the Target Zero Commission Law (P.L.2024, c.109) was signed with the goal of
eliminating traffic fatalities and serious injuries on New Jersey’s roads by 2040. In accordance with the law, starting in Fiscal Year 2027, Local Aid programs will have a new criterion for projects located in a High Injury Network (HIN). A HIN, determined by traffic studies, designates roadways that have a high concentration of fatal and serious injury crashes. It is highly recommended that projects be developed to support this initiative, focusing on enhancing safety measures and reducing incidents in these critical areas.

The grants are administered by the NJDOT Division of Local Aid and Economic Development. The Local Aid Resource Center provides a central warehouse for local government managers by providing hands-on resources for the application process, raising awareness of grant cycles and proactively communicating program information.

For more information about Local Aid programs go to https://njdotlocalhub.com; call 609.649.9395; or email DOT-LocalAID.ResourceCenter@dot.nj.gov. For NJDOT news follow us on X (Twitter) @NewJerseyDOT, on the NJDOT Facebook page, or Instagram @NewJersey.DOT.