ATLANTIC CITY—Assemblyman Don Guardian stood on the floor in Trenton this January and declared that New Jersey was making Atlantic City "its personal Vietnam" by extending state oversight of the resort town. Then he voted for it anyway. The legislation signed on January 20 extends the Department of Community Affairs' control over Atlantic City budgets, union contracts, and hiring decisions through December 1, 2031. It effectively freezes municipal autonomy for the next five years, despite voters giving Mayor Marty Small a fresh mandate with more than 60 percent of the vote in November 2025.

Governor Mikie Sherrill met with Small at City Hall on March 11 for her first in-person session with the mayor since taking office. Small emerged pledging to be a "strong and collaborative partner with Governor Sherrill," emphasizing that "relationships matter." The meeting covered property tax relief and Atlantic Avenue improvements, but produced no change to the oversight structure that leaves Trenton appointees in charge of municipal operations.

State Authority Over A.C. Expanded

The extension includes a significant expansion of authority: the Department of Community Affairs may now appoint master developers with power to override Atlantic City Planning Board and City Council decisions on redevelopment projects. This shifts control of zoning and development, traditionally local prerogatives, to state appointees. The 150-acre Bader Field waterfront development site is statutorily exempt from the master developer rules.

Guardian's floor speech exemplifies the fractured politics of the takeover. The Republican Assemblyman served as mayor of Atlantic City from 2014 to 2018, under the initial years of state control. He lost his re-election bid in 2017 and now supports extending the very authority he once labored under, all while simultaneously comparing it to a disastrous military quagmire.

State Senator Vince Polistina of Atlantic County has been less ambiguous. Polistina, who previously worked to return municipal functions to local control, has called the master developer provision "overreach" and is developing legislation to return planning and zoning authority to the city. Council Vice President Kaleem Shabazz has similarly criticized the expansion as an "extra layer of bureaucracy."

Over a Decade of State Control

Atlantic County Executive Dennis Levinson offered a pointed assessment in December: "The state has been there since 2012. The city has not progressed under the state's control."

Timing creates an awkward narrative for Trenton. Moody's Investors Service upgraded Atlantic City's general obligation bonds to Baa3 in December 2025, the first investment-grade rating in over a decade. The city has eliminated approximately $272 million in debt since liabilities peaked at $500 million, leaving $228 million outstanding. Small, who was acquitted of criminal charges in November 2025, noted the contradiction in a February interview: "There's a bill for six years, but the state of New Jersey doesn't run the day to day [operations] of Atlantic City, right?... We're going to play the hand that we've been dealt with."

The Casino Reinvestment Development Authority, a state agency with board members appointed by the governor, praised the extension as maintaining a "fruitful partnership" with regulators. Hard Rock International and other major casino operators have remained silent on the master developer provision.

At time of writing, no master developer has been appointed under the new authority. 

Sources:

• The Press of Atlantic City, "Guardian says NJ is making Atlantic City 'its personal Vietnam' by extending takeover law" (January 14, 2026)

• Downbeach BUZZ, "State To Extend Takeover Powers, Tighten Grip On Atlantic City Mayor" 

• Downbeach BUZZ, "NJ State To Extend Control Over Atlantic City" (December 22, 2025)

• Atlantic City Focus, "Governor Mikie Sherrill Meets With Atlantic City Leaders to Discuss Tax Relief, Bader Field Redevelopment" (March 11, 2026)

• City of Atlantic City, "New Jersey Governor Mikie Sherrill Meets with Mayor Small, Atlantic City Leadership to Discuss Key Priorities" (March 3, 2026)

• Front Runner New Jersey, "Black History Month: Mayor Marty Small Ready to Move Atlantic City, Family Forward" (February 9, 2026)

• Moody's Investors Service, "Rating Action: Atlantic City (City of) NJ upgraded to Baa3 from Ba1" (December 30, 2025)

• City of Atlantic City, "City of Atlantic City Achieves Investment Grade Credit Rating from Moody's" (January 5, 2026)

• NJBIZ, "Moody's raises Atlantic City investment-grade credit rating" (January 7, 2026)