The bill establishes the Minority-Serving State College and University Stabilization Program within the Office of the Secretary of Higher Education, allocating $20 million to support minority-serving institutions facing challenges due to the COVID-19 pandemic. The program aims to provide grants to eligible colleges and universities that have experienced a decline in full-time undergraduate enrollment of at least 10% and a reduction in instructional faculty and staff over the past two years. Institutions wishing to participate must submit a stabilization plan that outlines their fiscal distress, strategies for addressing enrollment decline, and plans for staff restoration and student support, among other requirements.

Additionally, the bill mandates that participating institutions report on their expenditures within 180 days of receiving a grant, with a follow-up report detailing remaining fund usage. The Secretary of Higher Education is tasked with reviewing these reports and consulting with campus collective bargaining representatives. The funding will be sourced from both the General Fund and federal funds from the American Rescue Plan, ensuring that any unspent funds at the end of the fiscal year are redistributed to minority-serving institutions on a per-student basis.