Jersey City is set to receive a $120 million state financial assistance package to help address its budget shortfall after the Senate and Assembly budget committees approved a general appropriations bill that includes the funding, city officials announced Monday.

According to Mayor James Solomon's administration, the package includes $105 million in long-term, low-interest debt and $15 million in transitional aid grants. Combined with $55 million in previously identified savings, the assistance reduces the city's remaining 2026 budget deficit to about $80 million.

City officials said Jersey City inherited an approximately $255 million budget gap when Solomon took office in January. After administrative savings reduced the gap to about $200 million, the new state aid further narrows the shortfall. Officials said the city must still address a recurring structural deficit of about $90 million through a combination of additional revenue and spending cuts.

The aid package was backed by Gov. Mikie Sherrill, legislative leaders and Hudson County officials, including Sen. Raj Mukherji, Sen. Angela McKnight and County Executive Craig Guy.

The state assistance will primarily be used to pay outstanding city debt due this year, according to the administration. Officials said aid distribution is expected to begin within 30 days after the state budget is enacted.

Solomon's administration said it plans to incorporate the funding into the city's proposed budget, which is scheduled to be introduced to the City Council on July 15, with adoption targeted for mid-August.