Regional Review: New Jersey’s education sector continues embracing change

Writer: Mariana Hernández

Regional Review is a year-end series from caa that looks at key developments in a focused industry throughout the year and sets the stage for what’s to come in the near term.

December 2025 — New Jersey’s education sector is undergoing one of its most active periods of policy change in recent years as districts adapt to new legislation, evolving student needs, and a transition in state leadership. With over 1.4 million students in PK–12 schools, and major reforms taking effect in 2025–2026, the Garden State is setting the stage for a transformative year ahead.

Join us at the Invest: New Jersey 6th Edition Leadership Summit! This premier event brings together hundreds of New Jersey’s business and regional leaders to discuss the challenges and opportunities for businesses and investors. Buy your ticket now!

“Expanding access to high-quality early childhood education has been the cornerstone of my Administration’s approach to setting our children on a path to lifelong success,” said Governor Murphy on the signed legislation to expand access to early childhood education in July.

As of November 2025, New Jersey serves 1,426,840 students from PK–12 according to the state department of education, supported by a 12:1 student–teacher ratio and an experienced workforce averaging 12.6 years in the classroom. The state’s diverse student body includes 19.3% students with disabilities, 10.6% multilingual learners, and 38.1% economically disadvantaged students, creating a strong need for equitable funding and targeted support systems.

Major legislative changes

According to the New Jersey Principals & Supervisors Association, a wave of over 150 education-related legislative actions was enacted between 2024 and 2025, reshaping district operations. The regulations include health and safety measures, digital safety, and mental health support for students and administrative updates, amongst others.

Significant financial and administrative shifts are also underway. A new DOE grant program will help districts install filtered bottle-filling stations to improve school water quality, with statewide reporting due in 2026. Beginning in the 2026–2027 school year, schools must offer no-fee direct payment options for meals, activities, and school services to reduce financial barriers for families. These changes aim to balance equity, transparency, and family financial access statewide.

One of the most impactful legislative moves is the passage of the New Jersey Universal Preschool and Kindergarten Act, which mandates free, full-day kindergarten statewide by 2029–2030. The law also launches a three-year preschool expansion pilot designed to increase access, support mixed-delivery childcare providers, and give districts flexibility in using preschool aid for facilities and workforce development. This initiative represents a major expansion in New Jersey’s early-education system.

The upcoming school year will bring noticeable classroom changes for students. Beginning in spring 2026, New Jersey will transition to adaptive learning assessments for grades 3–9 and 11, replacing traditional standardized tests with personalized, computer-based exams. Many districts are also implementing cell phone restrictions, as lawmakers consider a statewide policy, according to the New Jersey Legislature.

Federal funding freeze

In the first half of 2025, New Jersey schools faced one of the most disruptive fiscal shocks in recent years: the Trump administration’s decision to withhold $143 million in federal K-12 funds. Districts had already finalized their 2025–2026 budgets when the freeze was announced, leaving school leaders scrambling to patch unexpected holes and reassess spending plans.

Districts like Pittsgrove warned that cuts would force reductions in teacher professional development and eliminate training sessions essential for rolling out new instructional models. State officials described the sudden withdrawal of federal dollars as a direct threat to student learning.

After weeks of legal challenges and public pressure, New Jersey secured a pivotal victory. On August 1, the Trump administration reversed its freeze and released $158 million in previously blocked K-12 and education-related funds following a multistate lawsuit led by 23 attorneys general — including New Jersey Attorney General Matthew Platkin. With the funds restored, New Jersey’s incoming administration enters 2026 with a more stable fiscal foundation.

New leadership and the direction for education in 2026

Looking ahead, the election of Governor Mikie Sherrill places education at the forefront of the 2026 policy agenda. According to the Education Law Center, key priorities should include stabilizing the school funding formula, supporting the Abbott preschool model, improving school facilities, combating segregation, resisting federal voucher expansion, and protecting student rights. Many of the budget fixes introduced in FY26 are temporary, creating urgency for long-term legislative action in the coming year.

As the state prepares for a new administration and the 2025–2026 academic year, New Jersey’s education landscape stands at a pivotal moment. Stronger legislative oversight, expanded early childhood programs, enhanced student protections, and statewide assessment reforms signal a system moving toward modernization. With the funds restored, New Jersey enters 2026 with a clearer path toward long-term improvement across its public schools.

Want more? Read the Invest: New Jersey report.