The LEAP Challenge Grant, administered by the New Jersey Department of Community Affairs (DCA) through the Division of Local Government Services (DLGS), is part of the broader Local Efficiency Achievement Program (LEAP). Established to advance shared services initiatives across New Jersey, LEAP aligns with Governor Phil Murphy’s efforts to streamline government operations and reduce costs by promoting inter-local cooperation. The Challenge Grant component encourages innovative and impactful collaborations among municipalities, counties, school districts, authorities, and fire districts to develop new or enhanced shared service models under the Uniform Shared Services and Consolidation Act.
The Challenge Grant offers up to $150,000 per New Jersey county, with a maximum of three grants available per county. These funds reimburse expenses incurred during the study or development of shared service programs. Eligible activities include regionalization enhancements, redundancy elimination, community engagement, IT and cybersecurity planning, and feasibility studies. Projects must involve at least two local government entities and demonstrate innovation, scalability, operational efficiency, and a minimum five-year shared service agreement. Ineligible expenses include general salaries, administrative costs, out-of-state travel, and other disallowed uses.
Applications must be submitted jointly by participating local government units and include certified resolutions from each entity, a narrative project description, detailed budget and cost savings analysis, and a comprehensive work plan. The lead agency must be identified in the submission. The use of consultants is permitted, provided their contracts comply with open procurement standards and include detailed work plans. All reimbursement is on a time and materials basis and must adhere to DLGS documentation standards.
Grant selection is based on criteria including innovation, replication potential, financial and administrative benefits, quality and feasibility of the work plan, and the level of participant support. Up to 20 bonus points may be awarded based on the distressed city ranking within the county. Applications are reviewed on a rolling basis, and awards are announced around June 15, 2025. Decisions are final and not subject to appeal.
The grant is reimbursement-based and requires quarterly reporting. Final payment is contingent on the execution of a shared service agreement and submission of a final project report. Failure to comply with requirements may result in fund recoupment or disqualification from future grants. Assistance is available via email at dlgs.leapgrant@dca.nj.gov or phone at (609) 930-1969. Applications must be submitted through the SAGE platform.
