The bill establishes a new section in Florida law, specifically section 112.3662, which prohibits political subdivisions from using public funds to finance any not-for-profit entity or organization within the state. It defines "not-for-profit entity or organization" as a Florida corporation that is not for profit and is incorporated under chapter 617, as well as clarifying the term "political subdivision" in accordance with existing law.

However, the bill includes an exception for rural hospitals, which are defined in section 395.602(2), allowing them to receive public funding despite the general prohibition. The act is set to take effect on July 1, 2026.