(NEW JERSEY) — Governor Mikie Sherrill moved to scale back New Jersey’s new Stay NJ senior property tax relief program in her proposed FY2026 state budget, cutting both the income ceiling and the maximum benefit as lawmakers begin negotiations over a $60.7 billion spending plan.

Sherrill’s proposal would reduce the Stay NJ income eligibility cap from $500,000 ($500, 000) to $250,000 and lower the maximum benefit from $6,500 ($6, 500) to $4,000, a change that could affect thousands of higher-income seniors.

The governor’s budget keeps the broader property tax relief package at roughly $4.2 billion, down slightly from $4.3 billion proposed earlier, with $2.3 billion for ANCHOR, $700 million for Stay NJ, and $350 million for Senior Freeze.

Lawmakers are paying close attention because Stay NJ has been billed as a cornerstone of senior-focused relief, designed to help older homeowners remain in their homes as property tax bills rise.

Stay NJ became law through legislation signed by Governor Phil Murphy on November 1, 2024, and it took effect January 1, 2026.

Under current law, the program reimburses eligible homeowners aged 65 and older for 50% of their property tax bills, subject to a cap that reaches $13,000 annually when fully implemented, with a 2025 benefit cap of $6,500.

Eligibility also requires owning and residing in the home for all 12 months of 2025, and it uses a New Jersey gross income measure that can include items seniors may not expect, including Social Security, pensions, annuities, exempt interest, retirement income, and Roth IRA distributions.

Stay NJ does not cover renters, and mobile homeowners are ineligible.

Applicants are expected to use PAS-1, a combined application that covers Stay NJ, ANCHOR, and Senior Freeze and launched February 5, 2026.

The state set a filing deadline of November 2, 2026, and it directed residents to propertytaxrelief.nj.gov for the application.

Stay NJ benefits depend on state budget appropriations, and current planning assumptions schedule payments for February 2027, a timing that could shape how seniors think about household cash flow and property tax bills.

Sherrill’s budget proposal would tighten eligibility and reduce the maximum benefit for Stay NJ while shifting the mix of relief inside the overall property tax package, and it would reduce Stay NJ funding from $1.2 billion to $700 million.

Her administration framed the changes as a way to keep the program focused on those it sees as most in need, calling it a “fairer, more efficient use of taxpayer money” that still protects middle-class seniors.

The proposal also aligns Stay NJ’s income rules with ANCHOR homeowner eligibility by moving to the $250,000 cap, and it changes ANCHOR’s $250 senior bonus by ending it after FY2026 for senior homeowners while continuing it for renters.

Senior Freeze and ANCHOR remain the other large programs many homeowners and renters track, even as their eligibility rules, benefit structures, and payment timelines differ despite sharing a combined application pathway.

Senior Freeze reimburses eligible seniors and disabled residents for property tax increases they would otherwise have to absorb, with $239 million that could rise to $350 million under Sherrill’s proposal, covering over 235,000 taxpayers with income limits of $168,268 (2024) or $172,475 (2025) and payments starting July 2026.

ANCHOR provides rebates or credits for homeowners and renters, with $2.4 billion, or $2.3 billion proposed, reaching over 2 million people and targeting payments for September 2026.

Sherrill’s plan sits inside the annual budget process, and the changes require legislative approval before they can take effect, setting up talks in which lawmakers will weigh savings against the program’s promise of broad relief.

Assembly Speaker Craig J. Coughlin, a champion of Stay NJ, has argued the initiative helps seniors “to continue to live in their homes, close to family and friends,” and he has said most will see property taxes cut in half when the program is fully implemented.

NJ Republicans criticized the proposed cuts, focusing on the narrower eligibility and lower benefit, as budget writers consider whether to accept Sherrill’s approach or restore earlier parameters.

Residents have already started seeing outreach tied to the combined application, with paper PAS-1 booklets mailed to over 500,000 households beginning the week of February 5, 2026, and the state has directed people who do not receive a booklet to look for online access or seek a replacement through state channels.