New Jersey Assembly Bill A3074

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Establishes "Global Economic Competitiveness and Supply Chain Resiliency Fund" in EDA for certain manufacturing business assistance; appropriates $82.5 million.

Impact

The bill appropriates a substantial amount of $82.5 million from the General Fund to the NJEDA to kickstart the fund and facilitate the program. The financial assistance under this initiative can take the form of grants, loans, or loan guarantees ranging between $25,000 to $1,500,000 per qualified business. This assistance is intended to foster economic growth and ensure the competitiveness of New Jersey's business sector by enabling companies to invest in manufacturing and workforce development, thus potentially leading to job creation and retention in the state.

Summary

Assembly Bill A3074 establishes the 'Global Economic Competitiveness and Supply Chain Resiliency Fund' managed by the New Jersey Economic Development Authority (NJEDA). The bill is aimed at supporting certain manufacturing businesses, particularly within targeted industries such as biotechnology and the production of semiconductors, electric vehicle batteries, and advanced machinery. The initiative responds to a recent focus by federal authorities on enhancing the resilience of supply chains for critical product sectors, thereby aiming to strengthen New Jersey's position in the global economy.

Contention

One notable aspect of the bill is its emphasis on targeting small and medium enterprises, defined as those that employ fewer than 250 individuals, signaling an effort to bolster the state's economic backbone. While supporters of the bill argue that it is a necessary investment in the state’s economic future, critics might raise concerns regarding the transparency and effectiveness of the proposed financial assistance, particularly in terms of accountability and the long-term impacts on local economies after the provided funds are exhausted in 2025.