The bill establishes the Minority-Serving State College and University Stabilization Program within the Office of the Secretary of Higher Education, appropriating $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 due to fiscal constraints over the past two years. Institutions wishing to participate must submit a stabilization plan detailing 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 second report required 180 days after the first. These reports must be made publicly available online. The funding will be sourced from both the General Fund and federal funds under the American Rescue Plan Act, ensuring that any unspent funds at the end of the fiscal year are redistributed to minority-serving institutions on a per-student basis. The Secretary of Higher Education is tasked with establishing the necessary rules and regulations to implement the program effectively.