New Jersey Governor Mikie Sherrill and the Democratic leaders of the Legislature announced today that they have reached an agreement on a $60.7 billion state budget for Fiscal Year 2027 that includes an expansion of the state’s child tax credit program and a scaled-back version of the controversial Stay NJ property tax relief initiative.

In a joint statement announcing the deal, Sherrill, Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin said the spending plan “makes New Jersey more affordable and protects our state from the Trump Administration’s dangerous policies that harm residents.”

The agreement, which comes just days before the July 1 deadline, would increase the state’s Child Tax Credit by 25%, expanding a program that provides direct financial assistance to families with young children. Democratic leaders said the move is aimed at easing costs for working families amid continued concerns about affordability.

The budget also reshapes Stay NJ, the state’s signature property tax relief program for older residents. Under the agreement, eligibility would be limited to households earning up to $200,000 annually — $50,000 less than the $250,000 cap proposed by Sherrill in her budget address earlier this year.

The benefit would be structured on a sliding scale, with lower-income seniors receiving larger payments. Households earning between $150,000 and $200,000 would receive $4,000 annually, those earning between $100,000 and just under $150,000 would receive $5,000, and seniors earning $100,000 or less would qualify for the program’s maximum benefit of $6,500.

It’s unclear whether Sherrill’s proposed new tax on businesses, organizations and nonpublic schools across the state, including dozens of Mosdos in Lakewood, remains in the budget.

The budget agreement comes as state leaders warn of uncertainty surrounding federal funding under President Donald Trump’s administration. The three Democratic leaders said the spending plan would increase the state’s surplus while preserving funding for programs that could face federal cuts, including Medicaid, food assistance and affordable health care.

“We are pleased to have worked closely together to reach an agreement on an FY 2027 budget that makes New Jersey more affordable and protects our state from the Trump Administration’s dangerous policies that harm residents,” the three leaders said in the statement.

They added that the budget “cuts the state’s structural deficit in half,” continues full pension funding and provides what they described as the largest amount of property tax relief in New Jersey history.

The Legislature is expected to vote on the spending package in the coming days ahead of the July 1 start of the new fiscal year.

Democrats hold majorities in both chambers of the Legislature, making passage of the budget likely, though lawmakers are expected to debate details of the tax relief programs and the state’s long-term fiscal outlook.