The New Jersey Board of Public Utilities (NJBPU), in consultation with the New Jersey Department of Environmental Protection (NJDEP) and the New Jersey Interagency Council on Climate Resilience, announced the launch of the Urban Heat Island (UHI) Mitigation Program, a $5 million initiative to help New Jersey’s most vulnerable communities combat extreme heat and rising energy costs this summer.
An urban heat island occurs when cities and densely developed areas become significantly hotter than surrounding rural regions, especially during the summer. The prevalence of impervious surfaces, such as pavement and buildings, results in heat retention, while a lack of trees and green spaces limits natural cooling.
“With more severe and frequent extreme weather events becoming our new normal, New Jersey is taking a whole-of-government approach to mitigate the worst impacts of extreme heat,” said Governor Phil Murphy. “We are committed to supporting every municipality across the state to protect the health and well-being of residents and businesses.”
In New Jersey, cities like Newark, Trenton, Camden and Jersey City are among the Northeast’s most intense UHIs, alongside New York City, Boston and Philadelphia. These population centers can be more than 5°F — and sometimes more than 20°F — hotter than surrounding areas, driving up energy bills, health risks and stress on power grids.
“Extreme heat doesn’t just threaten our health and safety; it drives energy costs through the roof, hitting hardest in communities already facing intensified heat from the urban heat island effect,” said NJBPU President Christine Guhl-Sadovy. “The NJBPU has a fundamental responsibility to ensure reliable, affordable energy for all New Jerseyans, which means tackling the contributory causes of energy demand.
The UHI Mitigation Program for Fiscal Year 2026 (FY2026), funded by the New Jersey Clean Energy Fund, will provide grants in three categories:
Comprehensive UHI Interventions: Up to $1 million each for two major neighborhood revitalization projects, including expanded tree canopy, green infrastructure, cool pavements, smart-misting systems and other cooling infrastructure.
Cooling the Built Environment: Up to $500,000 each for four upgrades to public buildings and cooling centers, with features like cool roofs, green roofs, geothermal heat pumps and battery storage to create resilience hubs — especially vital for communities with a high percentage of renters.
Urban Micro-climate Interventions: Up to $50,000 each for 20 community-led projects such as shaded bus stops, community gardens and water stations. All projects must be located on public land/or in publicly accessible spaces.
“This program leverages the NJCEF to deploy proven solutions that will help reduce peak electricity loads and deliver measurable relief to ratepayers while protecting our most vulnerable residents,” said Guhl-Sadovy.
Building on that framework, the NJDEP emphasized the program’s evidence-based approach and community-focused flexibility.
“Through the Extreme Heat Resilience Action Plan, developed by the Interagency Council on Climate Resilience, the Murphy Administration has established clear goals and actions to reduce the dangerous and even deadly impacts of extreme heat,” said Environmental Protection Commissioner Shawn M. LaTourette. “The Urban Heat Island Initiative builds on this work by providing funds to help our most vulnerable communities develop solutions that will better protect residents from the growing public health threat posed by a warming climate.”
The UHI Mitigation Program aims to:
- Reduce heat-related illnesses and deaths
- Lower energy costs and reduce strain on the electrical grid
- Support economic stability by preventing productivity losses and reducing health care costs
- Improve air quality and quality of life in urban neighborhoods
- Increase urban biodiversity and climate resilience
- Increase amenities in public spaces to increase community connections
The launch comes on the heels of a major heatwave in New Jersey and the surrounding region. From June 17–24, 2025, Newark shattered records, reaching 103°F and breaking its previous June high by six degrees. Atlantic City and several other towns, including Hackettstown, Hammonton, Lower Alloways Creek, Oswego Lake and Vineland, all exceeded 100°F.
Humidity increased “feels like” temperatures to 105°F, causing widespread power outages, buckling on parts of the I-287 South roadway and surges in emergency room visits across the state, underscoring the critical importance of putting health and safety front and center for New Jersey families, especially those with vulnerable members like children and the elderly.
UHIs dramatically increase energy use and costs for residents and businesses. For every 1°C increase in temperature, peak electricity load can rise by 5%, and up to 19% of annual cooling costs are directly linked to the heat island effect. This means higher utility bills, putting additional financial strain on low-income households already facing high energy burdens. Increased demand strains local power grids, raising the risk of outages and costly emergency repairs.
Extreme heat is the leading cause of weather-related deaths in the U.S., and health care costs linked to heat now exceed $1 billion annually, according to a 2023 report from the Center for American Progress and Virginia Commonwealth University (VCU).
According to the NJBPU, UHIs arose from decades of systemic inequities, including historic redlining and ongoing disinvestment, leaving communities of color and low-income communities with minimal access to green infrastructure. Additionally, extreme heat disproportionately impacts the elderly, children, outdoor workers and those with preexisting health conditions.
The UHI Mitigation Program provides funding for projects in overburdened municipalities and encourages strong partnerships with community-based organizations to ensure projects address local needs.
