New Jersey is preparing for another surge in large-scale construction and infrastructure investment, with new projections showing the state on track to exceed last year’s expectations. At the New Jersey Alliance for Action’s 41st Annual Construction Forecast, leaders detailed a two-year outlook that points to major spending across utilities, transportation, higher education, health care, and environmental upgrades—positioning the Garden State for one of its strongest construction cycles in recent memory.
The Alliance estimates that capital investment for 2026–2027 will reach $58.4 billion, surpassing the previous cycle’s projection and building on a trend of continued growth. The forecast anticipates $29.6 billion in 2026 spending and $28.8 billion in 2027, following last year’s $57.6 billion estimate—a figure that itself represented a more than 5% increase from the prior two-year period.
This year’s event outlined where these billions will be directed, offering a detailed look at the upcoming projects that will shape New Jersey’s economic and physical landscape. The spending package touches on nearly every sector that affects daily life in the state, from utility systems and public transit to college campuses and environmental restoration initiatives.
Among the largest allocations is $17.7 billion dedicated to public water, sewer, gas, and electric utility infrastructure, a backbone investment that supports both community resilience and long-term reliability. Hospitals and health care facilities are expected to contribute $6.2 billion, reinforcing the state’s focus on modernizing patient care spaces and upgrading essential services.
NJ Transit is positioned for a significant boost as well, with $5 billion in planned spending that includes roughly $814 million in station improvements. Riders across the system will see updates aimed at enhancing accessibility, reliability, and capacity. Meanwhile, the New Jersey Turnpike Authority will invest $2.2 billion in 2026 and $3.6 billion in 2027, with major undertakings such as the Newark Bay Bridge work, widening between Exits 1 and 4, and additional improvements along the Garden State Parkway.
NJ Alliance for Action President Jerry Keenan emphasized the broader economic influence of these large-scale commitments, noting that construction remains one of New Jersey’s most powerful engines for growth. He pointed out that these projects bolster local communities by generating jobs, stimulating regional businesses, and reinforcing essential systems that support daily life.
Higher education leaders also highlighted a substantial development for New Jersey’s colleges and universities. Jennifer Keyes Maloney, Executive Director of the New Jersey Association of State Colleges and Universities, shared updates on a recently approved $243 million plan for deferred maintenance projects across public institutions. The initiative, signed off by the governor, now moves to the Legislature for review. Should lawmakers take no action within 45 to 60 days, the projects will automatically receive final approval.
These campus investments are designed to address longstanding maintenance needs that directly affect student safety and campus functionality. They are also expected to fuel additional construction work around the state, further contributing to the broader economic ripple of New Jersey’s ongoing building cycle.
Keenan reiterated that today’s forecast makes clear the industry isn’t slowing down, a message echoed by industry leaders at the Associated Construction Contractors of New Jersey’s Fall Convention. With thousands of professionals across business, labor, utilities, government, and education involved, the Alliance for Action continues to serve as a central voice for statewide development efforts.
New Jersey’s commitment to strengthening infrastructure, modernizing its campuses, and improving essential systems underscores a long-term vision that prioritizes safety, economic vitality, and opportunity for residents. As billions of dollars in projects move forward, the state is positioning itself for a transformative period of growth that touches every region.
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