Agudath Israel of America’s New Jersey office welcomes the passage of landmark legislation reforming the State’s auxiliary and remedial services funding program (Chapter 192), the only State-funded program that provides direct educational services to nonpublic school students, such as tutoring, Kriah and speech services.

This marks the culmination of years of sustained advocacy to modernize a system that has long failed to fully serve eligible children.

The bill restructures the way State aid for nonpublic school services is distributed, replacing an outdated allocation model with a reimbursement-based system tied to actual services delivered. The reform is designed to ensure that funds appropriated by the Legislature are fully utilized and equitably distributed – without increasing the overall cost to taxpayers.

Statewide, in Fiscal Year 2024, over $15 million was returned by nonpublic schools, including schools in Cherry Hill, Highland Park/Edison and Passaic.

The impact of the current system is particularly evident in Lakewood. In that year, Lakewood schools received a combined $46.1 million in funding for nonpublic auxiliary and remedial services but were forced to return approximately $6.6 million – nearly 29 percent of the allocation – because the outdated funding structure made it impossible to fully utilize the funds.

“For far too long, millions of dollars intended to support nonpublic school students went unused each year due to a flawed funding mechanism,” Shlomo Schorr, director of legislative affairs for Agudath Israel of America’s New Jersey Office, said in a statement. “This legislation fixes that problem and ensures that children who are eligible for these services can actually receive them. We are deeply grateful to the legislators who championed this effort and helped bring it across the finish line.”

Under the new law, as long as eligible services are provided, districts will no longer be required to return unused aid, ensuring that funding reaches the students it was intended to serve.

“Agudath Israel extends special thanks to Assemblyman Avi Schnall and Senator Patrick Diegnan, the bill’s prime sponsors, for their leadership and dedication to this issue,” Schorr said. “Their efforts ensured that this bill was not just a policy adjustment, but a meaningful improvement for students who rely on these critical services.”

Agudath Israel also expressed its appreciation to Assemblyman Gary Schaer, who has worked for many years to strengthen the program and was instrumental in securing recent increases in State funding for these services.

“Assemblyman Schaer has worked tirelessly on this issue for many years,” Schorr noted. “We are extremely grateful for his leadership and ongoing commitment to ensuring these programs are adequately funded and effectively administered.”

Under the new law, school districts will be reimbursed for services actually provided to eligible nonpublic school students, with the Commissioner of Education directed to manage the program to ensure funds are exhausted each year and available throughout the school calendar. The changes address chronic underfunding, proration, and the return of unused funds that have plagued the program for more than a decade.

The bill now heads to Governor Murphy for his signature.