Gov. Chris Christie signed a controversial 23-cent gas tax into law on Friday while also cutting the sales tax and lifting a three-month ban on construction projects.

The hike will take effect on Nov. 1. The gas tax money will replenish the state's bankrupt Transportation Trust Fund, which funded the projects that Christie had stopped when the money ran dry in July. "Through this legislation, we are continuing our commitment to providing tax relief for working New Jerseyans of all income levels, senior citizens, military veterans and property owners, while ensuring solid, reliable, state-of-the-art roads, bridges and mass transit systems," said Christie.

Christie signed the legislation nearly a week after the state Legislature approved the plan. The state Senate voted 24-14 to approve the plan, while the state Assembly voted 44-27 to approve it, with nine not voting, soon afterward. Read more: N.J. Gas Tax Hike: What You Need To Know

The plan has had its share of critics. While most of the state's Democrat lawmakers have supported the plan, a number of Republicans have voiced opposition — despite the additional tax cuts. Moody's, the nation's leading investor relations service, says the 23-cent gas tax hike deal will blow a big hole in the state's budget.

In a report called "New Jersey's Tax Plan Has Negative Implications for State's General Fund," Moody's said the 23-cent gas tax increase is offset by various tax reductions that will strain the state's operating budget.

As part of the plan, the sales tax will be reduced by one-third of a penny over two years. On Jan. 1, 2017, the sales tax will go from 7 percent to 6.875 percent, followed by a decrease to 6.625 percent on Jan. 1, 2018, for a total reduction of 0.375 percent.

"Over the next eight years, a record $32 billion in state and federal funds will be invested in infrastructure improvements and modernizations in New Jersey," Christie said. "This compromise legislation locks in what I called for from the beginning: tax fairness for all residents, leading to a more affordable state and an improved economy." The Earned Income Tax Credit also will be increased from 30 percent to 35 percent. Veterans will gain a $3,000 personal tax exemption, retirees will pay less in taxes on their retirement income, and the estate tax will be phased out over two years, eliminating a duplicative tax that can fall on middle class families.