Blue Acres Receives Record $24.7M Allocation through State’s Corporate Business Tax

February 27, 2025

On January 30th, 2025, Governor Phil Murphy signed Assembly bill 5121/ Senate bill 3943, appropriating a record-breaking $24.7 million in funding for the Blue Acres program from revenue generated through the state’s Corporate Business Tax (CBT). The appropriations made available under this bill have been and the board of the Garden State Preservation Trust (GSPT), and they will support the voluntary acquisition of flood-prone properties across New Jersey for flood storage, conservation and recreational use.

This marks the largest single-year funding increase in Blue Acres history. Historic allocations to the program were smaller, typically $3-$4 million but following Ida funding rose to $10.5 million, and this year’s $24.7 million allocation, showing New Jersey’s growing commitment to the program, state led flood mitigation efforts and the importance of nature-based climate resilience solutions.

Stay tuned, there will be additional buyout funding opportunities for homeowners. Blue Acres staff will reach out directly to engage eligible applicants. If you have already applied to Blue Acres, you do not need to reapply. These funds will not affect the approval status of buyout applicants or participants in federal grants.

Flooding in Delran, NJ – January 2024 (Source: Fox 29 Philadelphia)

How CBT Funds Are Used

Blue Acres uses CBT funds to:

  1. Pay upfront expenses for federal grant-funded projects. Many federal buyout programs require project costs such as property appraisals and purchase prices to be fronted by state or local funds and then reimbursed by federal grant funds. CBT funding helps bridge this gap, ensuring projects move forward efficiently and that homeowner timelines can progress quickly once federal awards are attained. Blue Acres state funds safeguards homeowners and local government partners from having to deal with fits and starts or the delays associated with requesting and awaiting federal reimbursements at each step of the buyout process.
  2. Pay local cost shares required as part of federal grant agreements. For example, the Natural Resources Conservation Service’s Emergency Watershed Protection Program (NRCS-EWPP) covers 75% of buyout program costs, leaving the remaining 25% to be funded locally, a cost that will be covered entirely by CBT funds.
  3. Carry out 100% state-funded buyouts. Fully state funded buyouts are implemented quicker and they require no external approvals or oversight which allow homeowners to transition to safer areas more efficiently.

The Blue Acres program remains committed to working with willing sellers of flood-prone homes to provide the option of a voluntary buyout with the goal of enhancing community climate resilience. With this historic CBT funding allocation, the program aims to implement state-funded buyouts in communities that continue to recover from Hurricane Ida (September 2021) and more recent storms in December 2023 and January 2024 which resulted in severe flooding for several New Jersey communities.