Credits $2.35 billion to "New Jersey Debt Defeasance and Prevention Fund"; appropriates $4.32 billion to Department of Treasury to provide funds to municipalities and counties for debt retirement and avoidance.

S 2541 allocates $4.32 billion from New Jersey's Debt Defeasance and Prevention Fund to help all 565 municipalities and 21 counties retire existing local debt or fund capital projects (like water systems, parks, or public safety facilities) without issuing new bonds. It directs the Department of Treasury to distribute $3 billion to municipalities equally per resident and $1.32 billion to counties equally per resident, with all funds to be distributed within 30 days of enactment. The bill adds $2.35 billion to the fund from the General Fund to support this allocation. This directly affects every local government in New Jersey by providing immediate, equitable funding for debt reduction and infrastructure.