New Jersey lawmakers are considering whether to tap into a new federal borrowing program to help close the shortfall and keep pace with required contributions to the state’s underfunded pension system—including scheduled payments of $4.7 billion in the fiscal year that started July 1.

The money would come from the Federal Reserve’s Municipal Liquidity Facility (MLF), a borrowing option created in April for state and local governments experiencing cash flow pressures stemming from steps taken to shutter the economy and slow the pandemic’s spread.

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