If enacted, this bill would amend current statutes by adding a new article that establishes eligibility criteria for Arizona higher education institutions regarding state funding. Specifically, it would declare that any higher education institution offering courses on diversity, equity, and inclusion (DEI) would be ineligible to receive state funds in that fiscal year. Additionally, it would prohibit the State Treasurer, the Arizona Board of Regents (ABOR), and the Arizona Department of Administration (ADOA) from distributing state monies to such institutions during the same period.

The bill also introduces definitions related to DEI courses, specifying what constitutes a course on diversity, equity, and inclusion, and clarifying that it does not include courses that merely discuss historical instances of racial hatred or discrimination unless they promote prohibited activities. Furthermore, it defines "higher education institution" to include public universities and community colleges in Arizona. Overall, the bill aims to restrict state funding based on the content of educational courses offered by these institutions.