New Jersey’s tradition of expanding access to higher education may be facing a serious setback. Governor Phil Murphy’s proposed budget for Fiscal Year 2026 outlines sweeping cuts to the state’s higher education funding, drawing concern from students, educators, and policy advocates alike. The proposal, now under review by the state legislature, slashes hundreds of millions of dollars from public colleges and universities and threatens critical student aid programs.
Among the most notable cuts is an 18% reduction to the Community College Opportunity Grant (CCOG)—a cornerstone of New Jersey’s free community college initiative. The CCOG has helped thousands of lower- and middle-income students attend school tuition-free. If enacted, the cut would strip away aid for approximately 6,000 students, disproportionately impacting first-generation college-goers and working-class families already struggling with rising living costs.
Equally alarming is the proposed elimination of the Summer Tuition Aid Grant (TAG) program. The $20 million program served around 13,000 students in FY 2025, providing essential aid to help them catch up or get ahead during the summer term. Without these funds, students may be forced to delay graduation or take on more debt—if they remain enrolled at all.
Beyond specific aid programs, the broader picture is bleak: the FY 2026 budget calls for a $400 million cut in total higher education funding, a 16.1% decrease that would reverberate across the state’s public four-year institutions and community colleges. This reduction threatens not only academic programs but also critical student services such as mental health support, tutoring, and career counseling.
Advocates warn these cuts could lead to tuition hikes, faculty and staff layoffs, and increased class sizes, undermining the quality and accessibility of public education. The ripple effects would be especially harsh for students from marginalized communities—those already bearing the brunt of economic and racial inequality.
The proposed budget arrives at a time when many families are still recovering from the economic aftershocks of the pandemic, inflation, and student loan resumption. Critics argue that now is the time to double down on investment in higher education, not pull back. Doing so, they say, would not only help individuals thrive but also boost the state’s long-term economic competitiveness.
As of June 9, 2025, the proposal remains under debate in the state legislature. Lawmakers have the opportunity to revise and restore funding before the budget is finalized. Until then, tens of thousands of New Jersey students are left in a state of uncertainty—wondering whether they can afford to stay in school, finish their degrees, or even dream of college in the first place.
The Higher Education Inquirer will continue monitoring the budget process and reporting on its implications for students, educators, and the future of public higher education in the Garden State.
