The bill mandates that the state board of regents submit a report to the general assembly and the governor by the November 2026 meeting. This report will outline a proposed performance-based funding model for the higher education institutions under the board's governance. The model must incorporate specific metrics, including graduation rates, the number of degrees awarded in high-demand job areas, post-graduation employment rates, post-graduation income, and the retention of graduates within the state.

The bill emphasizes the importance of these factors in evaluating the performance of higher education institutions and aims to align funding with outcomes that benefit both students and the state's workforce needs. The inclusion of these metrics is intended to enhance accountability and ensure that funding is directed towards institutions that effectively support student success and contribute to the state's economy.