This bill establishes that any institution of higher education that engages in boycotting or divesting from Israel or Israeli-supporting businesses will be ineligible to receive various forms of State funding. Specifically, the bill prohibits these institutions from receiving State operating aid, proceeds from State-supported revenue bonds issued by the New Jersey Educational Facilities Authority, proceeds from State general obligation bonds, and funds awarded to students through State student assistance or scholarship programs administered by the Higher Education Student Assistance Authority.

The bill defines key terms related to the Boycott, Divestment, and Sanctions (BDS) movement, clarifying that actions intended to penalize or inflict economic harm on Israel, as well as divestment from companies supporting Israel, fall under the prohibitions outlined. However, it also states that the act does not prevent institutions from divesting for prudent economic reasons. The bill is set to take effect immediately upon passage.