The proposed 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) is 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.

Furthermore, the bill would define what constitutes a "course on diversity, equity, and inclusion," detailing specific content that would trigger the funding ineligibility. This includes courses that relate contemporary American society to various critical theories and concepts, promote the idea of systemic bias, or suggest that students are biased based on race or sex. The bill also clarifies that courses discussing historical instances of racial hatred or discrimination are exempt from this definition unless they include the prohibited activities outlined. Overall, the bill aims to restrict state funding based on the curriculum offered by higher education institutions.