The bill establishes the Stabilized School Budget Aid Grant Program within the New Jersey Department of Education, aimed at providing financial assistance to eligible school districts facing reductions in state school aid for the 2024-2025 school year. The program will offer aid grants of up to two-thirds of the amount of state aid reductions, with a total appropriation of $71.4 million allocated from the Property Tax Relief Fund. To qualify for these grants, school districts must meet specific conditions, including fully exhausting their available tax authority and not reducing the total number of employees compared to the previous year, unless approved by the Commissioner of Education due to anticipated enrollment declines.

Additionally, the bill allows eligible districts to request increases to their general fund tax levy, up to one-third of their state aid reductions, provided that the total increase does not exceed 9.9 percent of the adjusted tax levy from the prior year. The bill also stipulates that if a district's tax authority results in raising more funds than the state aid reduction, they will not be eligible for the grant. Overall, the legislation aims to mitigate the impact of state aid cuts on school districts while ensuring they explore all available funding options before receiving state assistance.