Sherrill Orders 90-Day Freeze on New State Regulations

Governor Mikie Sherrill ordered a 90-day freeze on new state regulations Thursday, her first major policy directive since winning the governor’s race in November and a clear signal she plans to take a different approach than her predecessor.

The moratorium covers all pending regulations across state agencies, with exceptions only for public health emergencies and federal mandates. The move affects dozens of proposed rules that were in various stages of approval under the Murphy administration, from environmental standards to business licensing requirements.

“We’re hitting the pause button so we can review what makes sense for New Jersey families and businesses,” Sherrill said during a Statehouse briefing. “Every regulation should have a clear purpose and a measurable benefit.”

The freeze applies to any regulation not yet published in the New Jersey Register, the state’s official rulemaking publication. Agencies must submit detailed justifications for any rules they want to advance during the review period.

Business groups praised the decision as a smart first step for the new administration. “Governor Sherrill is showing she understands that regulatory certainty matters for job creation,” said Michele Siekerka, president of the New Jersey Business and Industry Association.

But environmental advocates warned the pause could delay critical protections, particularly rules aimed at reducing greenhouse gas emissions and protecting drinking water supplies. “We can’t afford to slow down on climate action while sea levels keep rising along our coast,” said Doug O’Malley of Environment New Jersey.

The regulatory review reflects broader changes coming as the Sherrill era begins, with the new governor promising a more business-friendly approach while maintaining environmental commitments. During the campaign, Sherrill criticized the Murphy administration for adding layers of red tape that she said drove businesses to other states.

Among the regulations now on hold are proposed changes to prevailing wage requirements for public construction projects, new standards for offshore wind development, and stricter oversight of ride-sharing companies. The Murphy administration had fast-tracked many of these rules in its final months, leading to complaints from Republican legislators about a “midnight regulation” push.

“The previous administration was trying to cram through last-minute rules without proper review,” said Assembly Republican Leader John DiMaio. “Governor Sherrill is bringing common sense back to Trenton.”

Democrats who controlled the Legislature during Murphy’s tenure defended the regulatory agenda as necessary to protect workers and the environment. “These aren’t arbitrary rules — they address real problems that affect real people,” said Senate President Nicholas Scutari.

The 90-day timeline puts pressure on state agencies to justify their regulatory priorities quickly. Each department must submit reports identifying which rules are essential, which can be modified, and which should be scrapped entirely.

Sherrill appointed deputy chief of staff Maria Comninou to lead the regulatory review, working with a team that includes former federal regulators and private sector lawyers. The review will consider economic impact, enforceability, and whether existing laws already address the issues.

Several regulations with strong business support will likely survive the review, including updated cybersecurity standards for financial institutions and streamlined permits for renewable energy projects. But others face uncertain futures, particularly rules that impose new costs on employers.

The New Jersey Chamber of Commerce identified nearly two dozen regulations it wants eliminated or revised, ranging from overtime pay calculations to environmental reporting requirements. “This is our chance to modernize how New Jersey regulates business,” said chamber president Tom Bracken.

Public health regulations face special scrutiny after COVID-19 expanded emergency powers that many legislators now want to rein in. The review will examine which pandemic-era rules should become permanent and which were temporary overreaches.

Environmental justice groups worry the pause will disproportionately affect low-income communities that rely on strong regulations for protection from pollution. “We need enforcement, not endless review,” said Ana Baptista of the New Jersey Environmental Justice Alliance.

The regulatory freeze follows similar moves by governors in other states who campaigned on reducing red tape. Pennsylvania’s Josh Shapiro ordered a comparable review in 2023, ultimately eliminating about 30 percent of pending regulations.

Sherrill’s order includes sunset provisions that automatically kill any regulation that doesn’t receive explicit approval by the review deadline. Agencies can request extensions, but only with detailed justifications and economic impact studies.

State employees who work on regulatory compliance said the freeze creates uncertainty about their roles, particularly in environmental and labor departments where rule enforcement is a core function. Union representatives are seeking meetings with the new administration to discuss staffing implications.

The governor plans to announce results of the review in phases, starting with high-priority business regulations in 60 days. Final recommendations for all affected rules are due by late April.

“We’re not anti-regulation — we’re pro-smart regulation,” Sherrill said. “New Jersey can protect people and the environment without making it impossible to do business here.”

The regulatory review represents one of the most significant policy shifts as New Jersey transitions from the Murphy years to what Sherrill promises will be a more pragmatic approach to governing.