NJ Bill Would Create Permanent Employee Ownership Transition Program

In 2024, the New Jersey Economic Development Authority, funded by $2 million from the State Fiscal Year 2024 Appropriations Act, created a technical assistance program and outreach initiative led by Rutgers' Institute for the Study of Employee Ownership and Profit Sharing to promote employee ownership as a tool for business transition. Governor Phil Murphy proposed a $6 million fund for feasibility assistance grants for the program, but it was not approved. The $2 million program has been available to help defray the costs of feasibility studies. 

Bills recently introduced in the New Jersey General Assembly and Senate would create a permanent employee ownership transition program. ESOPs, worker cooperatives, and employee ownership trusts (EOTs) would be eligible for grants to cover up to 90% of the costs for a feasibility study or $35,000, whichever is lower. The New Jersey Economic Development Authority would designate a program director and continue to work with Rutgers for outreach and education. Assembly bill A5016, “An Act concerning the encouragement of employee ownership models,” moved out of committee on an 11-4 vote on June 8, 2026; the companion Senate bill, S. 4218, passed out of committee the same day on a 5-0 vote. Neither bill contains a specific appropriation. The bills would also create a state advisory committee for the program that would include, among others, members from the employee ownership community.