The New Jersey state Senate Health committee on Monday advanced legislation that would establish a monthly phone tax to help fund the state’s behavioral health crisis response system, drawing opposition from several business groups and Republicans.

The Senate Health Committee approved the measure, which would impose a 40-cent monthly fee per line on commercial mobile service and internet-based voice service subscribers in New Jersey. The revenue would support the state’s 988 Suicide and Crisis Lifeline system of care, including call centers, mobile crisis response teams and public awareness campaigns.

Under the bill, telecommunications companies would collect the fee through customers’ regular billing statements and remit the funds to the state. Customers who receive benefits through the federal Lifeline program, which subsidizes communications services for low-income households, would be exempt.

Money raised by the fee would be deposited into a newly created “9-8-8 Suicide and Crisis Hotline Trust Fund Account” in the Department of the Treasury. The funds would be appropriated to support call, text and chat response services, crisis stabilization programs and community-based behavioral health providers that respond to people in mental health emergencies.

Supporters of the legislation say a dedicated funding stream is needed to ensure the long-term stability of the state’s crisis response infrastructure, which has seen increased demand since the nationwide rollout of the 988 crisis hotline in 2022.

During the committee hearing, several pro-business organizations testified against the proposal, arguing the fee amounts to a new tax on consumers and employers at a time when residents already face high living costs. Some business representatives urged lawmakers to fund the crisis system through the state budget instead of adding charges to telecommunications bills.

Senator Bob Singer (R-Lakewood), who is a member of the Health Committee, said he supports the crisis response system but voted against the bill because he believes the program should be funded through the state budget rather than a tax on all citizens.

Singer noted that lawmakers recently approved significant spending increases and salary raises while residents continue to face affordability challenges. He argued the program should be a permanent state budget line item instead of being funded through what he described as another cost burden on residents, warning that rising living expenses can discourage businesses and families from remaining in the state.

“Everyone on this side of the table got a $32,000 increase this year,” singer said. “So you’re right, 40 cents doesn’t matter for us. But my constituents didn’t. We found 100 million dollars on line items, such as a French museum in Jersey City, and things like that,” Singer added, referring to heavily criticized recent state budget expenditures.

The bill passed with only Democrats voting in favor.