After early colonial losses to the British in New York,

the colonies ratified the Declaration of Independence.
General Washington set up headquarters in New Jersey.
the Continental army set up headquarters at Fort Lee.
General Washington withdrew his troops to Pennsylvania.

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After early colonial losses to the British in New York in 1776, the situation for the American colonies became increasingly dire. Following the devastating defeats, including the Battle of Brooklyn and the fall of Fort Washington, General George Washington faced the challenge of keeping his army intact.

In response to the setbacks, General Washington did indeed set up headquarters in New Jersey, particularly around the area of Morristown, which would become a strategic location for regrouping the Continental Army. The Continental Army did sustain operations out of various locations, including Fort Lee, but with significant losses, Washington ultimately had to withdraw his troops to Pennsylvania for better protection and to strategize for future engagements.

Overall, these moves reflected the difficult circumstances faced by the Continental Army in the early years of the American Revolutionary War, as they adapted to ongoing British military pressure. The withdrawal to Pennsylvania was a critical moment that allowed Washington to preserve his forces and rethink his strategies moving forward.