Requires distribution of State aid to certain municipalities located in whole or in part in the Highlands preservation area.

This bill creates a state fund to provide financial aid to New Jersey municipalities located in the Highlands preservation area, specifically compensating them for declines in vacant land property values caused by the 2004 Highlands Water Protection Act. To qualify, a municipality must be entirely within the Highlands area or have at least 60% of its land in the area and have updated its local plans to align with Highlands protection rules. The aid amount is calculated by comparing vacant land values between 2023 (the base year) and the current year, then multiplying the difference by the municipality's tax rate. The state will distribute payments twice yearly from the established fund, directly offsetting municipalities' local tax revenue needs.