Higher Ed Counsel & Strategic Solutions

On March 4, 2026, the Supreme Court issued a unanimous opinion in Galette v. New Jersey Transit Corporation, holding that NJ Transit—a public corporation created by the New Jersey Legislature to operate bus and rail transit—does not qualify as an “arm of the state” and therefore cannot invoke New Jersey’s sovereign immunity in court. Justice Sotomayor’s opinion clarifies and streamlines the arm‑of‑the‑state inquiry, making formal legal structure and fiscal independence the dominant considerations while diminishing the relevance of an entity’s public mission, state funding, and state control.