On January 23, 2026, to allow time to review all pending rule proposals before any new actions are taken, newly inaugurated New Jersey Governor Sherrill promulgated Executive Order No. 7 to impose a 90-day moratorium on any regulatory proposal or adoption. Executive Order No. 7 can be found here. The Order applies to all agency actions, including those of the Departments of Banking & Insurance and Health. Significantly, the Order acknowledges that numerous regulations and rules proposed by administrative agencies within the last 18 months remain pending, as they have yet to be adopted or expire pursuant to N.J.A.C. 1:30- 6.2(c). Nonetheless, few exceptions are permitted, but the Order does outline a process for exceptions to permit more timely action as follows:
No later than February 2, 2026, and earlier to the extent practicable, the head of any State agency that has proposed any rule is required to submit for review to the Governor and the Governor’s Office, including the Office of the Chief Operating Officer, a memorandum or notification identifying the rules proposed by the agency whose non-adoption will:
- adversely impact public health, safety, welfare, or security;
- obstruct or impair essential operations or functions of the State agency in question;
- adversely impact compliance with any court order or statutory deadline; or
- prejudice the State of New Jersey with respect to the receipt of monies or financial assistance from the federal government, including but not limited to grants, contracts, loans, guarantees, cooperative agreements, non-cash contributions or donations of property, services, training, direct appropriations, or other assistance, or the ability to obtain any certifications or approvals from the federal government.
The Order took effect immediately upon adoption and will further delay long-awaited agency action by the New Jersey Department of Banking & Insurance.
Questions may be directed to author, Cynthia Borrelli.