Gov. Mikie Sherrill on Sept. 28, 2026, vetoed two bills that would have given Jersey City new ways to raise and redirect revenue while the city works through a large budget gap, according to veto statements from the governor’s office and reporting by New Jersey Monitor.

S-4514 would have authorized a new 5% municipal tax on motor vehicle rentals and changed how Jersey City can use certain parking-related taxes and fees, including a mass transit access tax on commercial parking. The Office of Legislative Services had estimated the rental tax alone could add up to $10 million a year, New Jersey Monitor reported.

In her absolute veto of S-4514, Sherrill wrote that Jersey City residents “are currently suffering from a fiscal crisis caused largely by the irresponsible decisions made by the City’s prior administration” and that the city needs “sustainable revenue growth and structural reforms” rather than the proposed tools “at this time.”

S-4513 would have let Jersey City divert fiscal year 2027 open-space, recreation, and historic-preservation levy dollars into the general fund. Sherrill vetoed that bill as well, saying Jersey City voters approved the levy in 2016 for those purposes only. “The will of the City’s voters should not be set aside in the manner proposed in the bill,” she wrote.

Jersey City spokeswoman Megan Malloy told New Jersey Monitor officials were “disappointed that these bills were vetoed since they would have provided relief for Jersey City at a time when we need every penny,” and that the city would keep working with the governor and Legislature.

Both bills were sponsored by legislators whose districts include Jersey City, including Sens. Raj Mukherji and Angela McKnight and Assembly members Jerry Walker and William Sampson. Lawmakers earlier this year also approved a $105 million low-interest loan and a $15 million grant intended to help the city’s finances, according to New Jersey Monitor. The vetoes were among Sherrill’s first since taking office in January.