This bill proposes significant updates to current statutes regarding state funding for higher education institutions in Arizona. Under the new provisions, any higher education institution that offers courses on diversity, equity, and inclusion (DEI) would be deemed ineligible to receive state funds in that fiscal year. Additionally, the State Treasurer, the Arizona Board of Regents (ABOR), and the Arizona Department of Administration (ADOA) would be prohibited from distributing state monies to such institutions during the same period.

The bill also defines what constitutes a "course on diversity, equity, and inclusion," specifying that it includes any course that addresses topics such as systemic racism, anti-racism, and social justice, among others. However, it clarifies that courses discussing historical instances of racial hatred or discrimination are exempt, provided they do not promote the prohibited activities outlined in the bill. The definition of "higher education institution" is expanded to include public universities and community colleges in Arizona.