This bill establishes that any institution of higher education in New Jersey 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 such as boycotting goods or businesses associated with Israel, divesting from investments supporting Israel, or participating in the BDS movement will trigger the funding prohibition. However, it also includes a provision stating that the act does not prevent institutions from selling or withdrawing investments for prudent economic reasons. The bill is set to take effect immediately upon passage.