EX-99.77B ACCT LTTR

Report of Independent Registered Public
Accounting Firm


To the Shareholders and Trustees of
Vanguard New Jersey Tax-Exempt Money
Market Fund,
Vanguard New Jersey Long-Term Tax-
Exempt Fund

In planning and performing our audits of the
financial statements of Vanguard New
Jersey Tax-Exempt Money Market Fund and
Vanguard New Jersey Long-Term Tax-
Exempt Fund (comprising Vanguard New
Jersey Tax-Exempt Funds, the "Funds") for
the year ended November 30, 2004, we
considered their internal control, including
control activities for safeguarding securities,
in order to determine our auditing
procedures for the purpose of expressing our
opinion on the financial statements and to
comply with the requirements of Form N-
SAR, not to provide assurance on internal
control.

The management of the Funds is responsible
for establishing and maintaining internal
control.  In fulfilling this responsibility,
estimates and judgments by management are
required to assess the expected benefits and
related costs of controls.  Generally, controls
that are relevant to an audit pertain to the
entity's objective of preparing financial
statements for external purposes that are
fairly presented in conformity with generally
accepted accounting principles.  Those
controls include the safeguarding of assets
against unauthorized acquisition, use or
disposition.

Because of inherent limitations in internal
control, errors or fraud may occur and not be
detected.  Also, projection of any evaluation
of internal control to future periods is
subject to the risk that controls may become
inadequate because of changes in conditions
or that the effectiveness of their design and
operation may deteriorate.

Our consideration of internal control would
not necessarily disclose all matters in
internal control that might be material
weaknesses under standards established by
the Public Company Accounting Oversight
Board (United States).  A material
weakness, for purposes of this report, is a
condition in which the design or operation
of one or more of the internal control
components does not reduce to a relatively
low level the risk that misstatements caused
by error or fraud in amounts that would be
material in relation to the financial
statements being audited may occur and not
be detected within a timely period by
employees in the normal course of
performing their assigned functions.
However, we noted no matters involving
internal control and its operation, including
controls for safeguarding securities, that we
consider to be material weaknesses as
defined above as of November 30, 2004.

This report is intended solely for the
information and use of the Trustees,
management and the Securities and
Exchange Commission and is not intended
to be and should not be used by anyone
other than these specified parties.





PricewaterhouseCoopers, LLP
January 10, 2005

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EX-99.77D POLICIES

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                     VANGUARD(R) FUNDS PROSPECTUS SUPPLEMENT

             IMPORTANT INFORMATION ABOUT NEW CASH MANAGEMENT OPTION


To meet the cash management needs of the Vanguard funds, Vanguard may invest the
daily cash balance of a fund in one or more Vanguard CMT Funds, which are very
low-cost money market funds established under a Securities and Exchange
Commission exemptive order. Each Vanguard fund bears its proportionate share of
the "at-cost" expenses of the Vanguard CMT Fund in which it invests.






























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