If enacted, this bill would amend current statutes by establishing that any Arizona higher education institution is ineligible to receive state funds during any fiscal year in which it offers courses on diversity, equity, and inclusion (DEI). Specifically, 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 in those fiscal years.

The bill also introduces a definition for "course on diversity, equity, and inclusion," detailing the types of content that would classify a course as DEI-related. This includes courses that address 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 not included, provided they do not promote the prohibited activities outlined in the bill. Additionally, the bill defines "higher education institution" to encompass public universities and community colleges in Arizona.