[SHIP]
                          [THE VANGUARD GROUP(R) LOGO]

                     VANGUARD(R) NEW JERSEY TAX-EXEMPT FUNDS
                SUPPLEMENT TO THE PROSPECTUS DATED JUNE 27, 2003

FUND MANAGERS
Effective  August 4, 2003,  John M. Carbone has assumed the role of Fund Manager
for Vanguard New Jersey  Tax-Exempt  Funds.  The Funds'  investment  objectives,
strategies, and policies remain unchanged.

The Plain Talk(R) titled "The Funds' Adviser" is replaced with the following:

The managers primarily responsible for overseeing the Funds' investments are:

ROBERT F. AUWAERTER, Principal of Vanguard. He has managed portfolio investments
since 1978;  has been with Vanguard  since 1981;  and has overseen all the Fixed
Income Group's  portfolio  management  activities since 2003.  Education:  B.S.,
University of Pennsylvania; M.B.A., Northwestern University.

JOHN M. CARBONE,  Principal of Vanguard.  He has worked in investment management
since 1986;  has managed  portfolio  investments  since 1991;  and has been with
Vanguard  since 1996; and has managed  Vanguard(R)New  Jersey  Tax-Exempt  Money
Market Fund and  Vanguard(R)New  Jersey  Long-Term  Tax-Exempt  Fund since 2003.
Education: B.S., Babson College; M.B.A., Southern Methodist University.


















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Vanguard Marketing Corporation, Distributor.                         PS14 082003