On Oct. 7, 2016, New Jersey lawmakers approved legislation to increase the state gas tax by 23 cents-per-gallon and the diesel tax by 27 cents-per-gallon (effective Nov. 1, 2016) in order to generate $2 billion annually in new revenue for transportation infrastructure. Combined with matching federal funds and bonds, the legislation is expected to enable $32 billion in transportation investment over the next eight years. As a compromise to balance the tax increase, the measures also include several tax cuts.