Funding for volunteer tax prep program

Summary#

A-5698 would make a supplemental appropriation for New Jersey’s fiscal year 2027. It would add $550,000 from the General Fund to the annual appropriations act, for volunteer income tax preparation assistance administered by United Way of Northern New Jersey. The bill’s stated purpose is to fund that assistance; it has been introduced but is not law, and passage is uncertain.

  • The Department of Community Affairs would receive the appropriation under its Social Services Programs grants-in-aid.
  • United Way of Northern New Jersey is named to receive the $550,000 for volunteer tax preparation assistance.
  • The act would take effect immediately if enacted.
  • The bill would not change income tax rates or tax rules.

What it means for you#

  • New Jersey residents seeking tax preparation help: The funding is intended for volunteer tax preparation assistance. The bill does not say who would qualify or what help would be available.
  • United Way of Northern New Jersey: It is named to receive the $550,000 grant.
  • Taxpayers generally: The bill would add state spending, but does not directly change your tax bill or create a new tax.
  • State government: The bill would add this amount to FY2027 appropriations. The source says $750,000 was appropriated for this purpose in FY2026 and not continued in FY2027; this bill would provide $550,000, not $750,000.

Money#

The bill would appropriate $550,000 from the General Fund for FY2027.

  • The appropriation is listed under the Department of Community Affairs’ grants-in-aid for social services.
  • The bill gives a dollar amount but does not state how the grant would be paid out or divided among services.
  • No estimate is provided for the number of people served or the cost per person.

What is unclear#

  • No publicly available information in the supplied material explains who can use the tax preparation assistance or what services it covers.
  • The bill does not set service standards, application rules, timelines, or reporting requirements.
  • It does not explain how the grant would be monitored or how results would be measured.
  • No publicly available information in the supplied material explains whether other organizations would take part or how the money would be allocated among locations.

Case for#

  • The bill appears intended to restore some FY2027 funding for volunteer tax preparation assistance after the FY2026 appropriation was not continued.
  • A possible argument for the bill is that directing funds to a named organization gives the state a specific recipient to administer the assistance.
  • The amount and purpose are stated in the bill, making the proposed public commitment clear.

Case against#

  • One concern is that the bill provides public funds without stating who qualifies, what services must be provided, or how success would be judged.
  • The bill does not describe oversight or reporting requirements, so it is unclear how lawmakers or the public would assess how the grant was used.
  • The proposed $550,000 is less than the $750,000 cited for FY2026; the bill does not explain how the lower amount would affect service availability.