This bill authorizes the New Jersey Infrastructure Bank (NJIB) to allocate up to $6,813,000 for low-interest loans to local government units for eligible hazard mitigation and resilience projects under the Community Hazard Assistance Mitigation Program (CHAMP) for fiscal year 2026. The funding is part of the implementation of the CHAMP program, which was established to align with the federal Safeguarding Tomorrow through Ongoing Risk Mitigation Act (STORM Act). The NJIB is also permitted to utilize loan repayments and interest accrued from previous loans to support the CHAMP program, as well as various funds generated from its operations to cover its operating expenses for FY 2026.

Additionally, the bill outlines the conditions under which loans will be made, including compliance with applicable laws and regulations, and stipulates that loans must be repaid within 30 years of project completion. The NJIB is empowered to adjust loan amounts based on project costs and is required to maintain the total loan issuance within available funds. The act will take effect immediately and will expire on July 1, 2026, ensuring that any project sponsors who do not finalize loan agreements by that date will lose their eligibility for the loans.