In the Municipal Aid program, funds are appropriated by the Legislature for municipalities in each county
based on a formula contained in legislation. Additionally, $5 million is allotted for those municipalities
that qualify for Urban Aid. Urban Aid is distributed by a formula that is computed by the New Jersey
Department of Community Affairs.
Each spring, the New Jersey Department of Transportation (NJDOT) announces the program for that fiscal year
and invites municipalities to apply. Road improvement projects such as resurfacing, rehabilitation or
reconstruction and signalization are funded from the $78.75 million in municipal aid distributed by
All applications for the Municipal Aid Program are to be submitted online through
System for Administering Grants Electronically (SAGE). Each district office will
review applications within their designated geographic area for completeness, make a field investigation,
evaluate and assign a rating to each project. Applications receive points based on various criteria
including existing road conditions, Average Daily Traffic (ADT), safety improvements, and access to nodes
(schools, residential areas, employment centers, etc). Other important criteria include the project's
readiness to construct, whether the municipality has received an allotment within the last three years, and
the municipality's award and close-out performance on previously awarded State grants.
Projects for which online applications have been submitted are presented to a screening committee comprised
of municipal engineers and NJDOT staff appointed by the Commissioner. The committee evaluates the projects
presented and makes recommendations to the Commissioner of Transportation for consideration and approval.
The State pays 75% of the funds at the time of bid approval and the remainder on a reimbursement basis
after acceptance by the municipality and the State of the work completed.
You will need Adobe Acrobat Reader to view the PDF files which is available at our state
Adobe Acrobat Access page.