NJ will pay the US Treasury $150M. Here’s why

April 28, 2025 | njspotlightnews.org

Listed in state budget documents alongside some of the biggest year-over-year cost drivers is a $150 million expense for an “arbitrage rebate.”

Although it’s hard to tell from the budget documents, the $150 million is intended to be paid to the U.S. Treasury during the new fiscal year that begins this July, according to officials from the state Department of the Treasury.

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NJ SEED: State budgets and finances are complicated, and the average citizen has little understanding of either. The result of the 2020 controversial $4 Billion bond sale to help fund the state budget coincidentally left NJ flush with money just in time for the re-election campaign of Gov. Murphy. The low interest bond sale may have made fiscal sense, but it involved what the US Treasury claims as an “arbitrage rebate” that is to be paid during FY 2026.