N.J. Stat. § 27:1B-25.5

2. All appropriations or authorizations made by the Legislature and allocated by the commissioner, under the local aid program, pursuant to section 25 of P.L.1984, c.73 (C.27:1B-25), shall include the following limitations on grant recipients: a. local government entity grant recipients shall be prohibited from using local aid program funds to support the work of any local government entity's employees on any construction projects funded, in whole or in part, out of funds from the local aid program; b. the construction contracts for all projects funded, in whole or in part, out of funds from the local aid program shall be made and awarded in accordance with the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.); c. for all projects funded, in whole or in part, out of funds from the local aid program, each bidder on a construction contract valued at more than $5,000,000 shall be prequalified by the New Jersey Department of Transportation; and d. a grant recipient under the local aid program shall be permitted to expend up to 10 percent of its aid allotment in the fiscal year beginning July 1, 2018 for design purposes, and up to five percent of its aid allotment in the fiscal year beginning July 1, 2019 and every fiscal year thereafter for such purposes.
L.2019, c.135, s.2.