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 limit commercial relations with Israel fall under the prohibitions outlined. However, it also includes a provision that allows for the sale, redemption, divestment, or withdrawal of investments for prudent economic reasons, ensuring that the law does not restrict institutions from making sound financial decisions. The act is set to take effect immediately upon passage.