This bill authorizes the New Jersey Infrastructure Bank (NJIB) to allocate up to $53,450,000 in Fiscal Year 2026 for low-interest loans to local government units undertaking specific transportation infrastructure projects. It also allows the NJIB to provide up to $1 million in principal-forgiveness financing loans for planning and design costs, with a provision for forgiving up to $100,000 of a loan for projects that secure at least $250,000 in financing through the Transportation Infrastructure Financing Program. The bill outlines the types of expenses that can be covered by the loan proceeds, including capitalized interest and bond issuance expenses, and permits the NJIB to utilize funds generated from its operations to cover its operating expenses.

Additionally, the bill includes provisions for the NJIB to adjust loan amounts based on project costs and allows for the use of funds from the General Fund for short-term loans under the Disaster Relief Emergency Financing Program. The NJIB is also exempt from certain regulatory requirements regarding the issuance of loans under this program. The act is set to take effect immediately and will expire on July 1, 2026, ensuring that the NJIB can continue to support critical transportation infrastructure projects in New Jersey while promoting sustainable economic development.