Governor Murphy Demands More Information from the Department of Defense Over Proposal to Move Jobs out of New Jersey

TRENTON – Governor Phil Murphy sent the attached letter expressing his concerns to U.S. Secretary of Defense Pete Hegseth and U.S. Secretary for the Army Daniel Driscoll over the United States Army’s proposed Army Transformation Initiative, particularly the restructuring of its acquisition enterprise. As proposed, the restructuring would consolidate the Army’s 12 current Program Executive Offices (PEOs) into seven Capability Executive Offices (CEOs), directly impacting New Jersey’s Picatinny Arsenal which has supported the Army’s ammunition enterprise for decades.

“As the Army’s primary armament facility, Picatinny possesses decades of unmatched technical expertise, state-of-the-art infrastructure, and a highly skilled, mission-driven workforce with vast experience in the development and management of advanced weapons and munitions,” Governor Murphy wrote in the letter. “Removing this critical mission from Picatinny would not only dismantle a uniquely capable and proven center of excellence – it would result in poorer weapons being delivered to our soldiers, compromising their safety and weakening our battlefield effectiveness for generations to come.”

Picatinny Arsenal is currently home to more than 6,000 military, civilian, and contractor personnel, including the scientists, engineers, and acquisition experts who lead the R&D and lifecycle management of advanced conventional weapons and ammunition. The Governor noted that, under the current proposal, approximately $500 million in annual R&D funding for ammunition would be redirected from Picatinny to other CEOs across the country. In addition, the acquisition of key armament systems, including mortars, artillery, and precision fires, would be reassigned to separate CEOs, removing nearly $1 billion in program funding from Picatinny Arsenal and eliminating as many as 1,000 highly skilled positions.

Additionally, the Governor pointed out that the Army’s proposal would interrupt a decades-old acquisition model that was introduced to improve coordination, oversight, and efficiency. As proposed, the fragmentation model would complicate program execution and widen the critical gap between early research and full-rate production, which currently falls under unified leadership at Picatinny. The Governor noted that splitting these roles across disparate commands would reduce visibility, stall decision-making, and ultimately result in fewer systems crossing the finish line.

With this letter, Governor Murphy joins Congresswoman Mikie Sherrill, who led a letter with the majority of the New Jersey Congressional Delegation, in outreach to the Secretaries on behalf of the people of New Jersey and in requesting a thorough briefing on the Army’s proposed acquisition reform. Specifically, the parties are asking for the Secretaries to provide answers to the following questions by no later than August 1, 2025:

1. What analysis was conducted to determine that breaking apart the responsibilities of the Joint Program Executive Office for Armaments and Ammunition (JPEO A&A) would improve efficiency?
2. What specific goals is the Army seeking to achieve through this proposal, and how was it determined that dismantling JPEO A&A would support those outcomes?
3. What is the projected cost of implementing this proposal?
4. How many civilian positions and contracts would be eliminated if the proposal were enacted?
5. In what ways did the Army consult with local communities and Congress during the development of this proposal?

“The future of Picatinny Arsenal is not just a New Jersey issue, it is a matter of national defense. At a time when the DOD is focused on expanding production capacity and strengthening its industrial base, Picatinny should be at the center of those efforts, not sidelined by structural changes that would diminish its mission. I strongly urge you not to proceed with this proposal until my office and the New Jersey Congressional Delegation have been fully briefed and consulted. We stand ready to work with Army and DOD leadership to ensure that Picatinny remains a center of armament excellence for generations to come,” Governor Murphy concluded.

"Picatinny Arsenal has long been a center of excellence, home to world-class research and development facilities that deliver state-of-the-art military technology to support the brave men and women who defend our nation at home and abroad,” said Senate Republican Leader Anthony Bucco. “Beyond its critical national defense mission, Picatinny serves as a major economic engine for our region and the state, providing high-quality careers for thousands of New Jerseyans.”

“The Army’s proposed restructuring, which would transfer key research functions away from Picatinny, not only threatens the loss of approximately 1,000 jobs but also risks the innovation and expertise that have made Picatinny a national asset. I strongly urge the Department of Defense to reconsider these changes and to recognize the critical role Picatinny continues to play in safeguarding our country and supporting our service members,” Senator Bucco continued.

To view the full letter, please click here.

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