After years of sustained advocacy, New Jersey lawmakers have approved sweeping reforms to the state’s nonpublic school services funding system, overhauling a program that critics say has long failed to deliver critical educational support to eligible students.
Agudath Israel of America’s New Jersey office announced Tuesday that the Legislature has enacted landmark legislation restructuring Chapter 192, the state’s auxiliary and remedial services program—the only state-funded initiative that provides direct educational services such as tutoring, kriah instruction, and speech therapy to nonpublic school students.
The reform replaces an outdated allocation-based funding model with a reimbursement system tied directly to services actually delivered. Advocates say the change will ensure that state dollars appropriated for nonpublic school students are fully utilized and equitably distributed, without increasing costs to taxpayers.
Under the existing framework, millions of dollars earmarked for student services routinely went unused and were returned to the state. In fiscal year 2024 alone, more than $15 million in Chapter 192 funds were returned statewide, including by districts in Cherry Hill, Highland Park/Edison, and Passaic.
The problem was particularly acute in Lakewood, where nonpublic schools received a combined $46.1 million for auxiliary and remedial services but were forced to return approximately $6.6 million—nearly 29 percent of the total allocation—because the funding structure made it impossible to spend the money in full.
“For far too long, millions of dollars intended to support nonpublic school students went unused each year due to a flawed funding mechanism,” said Shlomo Schorr, director of legislative affairs for Agudath Israel of America’s New Jersey office. “This legislation fixes that problem and ensures that children who are eligible for these services can actually receive them.”
Under the new law, as long as eligible services are provided, school districts will no longer be required to return unused aid. The Commissioner of Education is directed to administer the program in a way that ensures funds are available throughout the school year and fully exhausted annually—addressing chronic issues of underfunding, proration, and lapsing aid that have plagued the program for more than a decade.
Agudath Israel credited the bill’s prime sponsors, Assemblyman Avi Schnall and Senator Patrick Diegnan, for driving the reform through the Legislature.
“Their efforts ensured that this bill was not just a policy adjustment, but a meaningful improvement for students who rely on these critical services,” Schorr said.
The organization also praised Assemblyman Gary Schaer, citing his years-long work to strengthen the program and secure recent increases in state funding.
“Assemblyman Schaer has worked tirelessly on this issue for many years,” Schorr said. “We are extremely grateful for his leadership and ongoing commitment to ensuring these programs are adequately funded and effectively administered.”
The legislation now heads to Gov. Phil Murphy’s desk for his signature, a step that would formally enact one of the most significant changes to nonpublic school funding in New Jersey in decades.