The bill establishes the Minority-Serving State College and University Stabilization Program within the Office of the Secretary of Higher Education, allocating $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 two years prior to submitting a stabilization plan. Institutions wishing to participate must submit a detailed plan addressing their fiscal distress, strategies for improving enrollment and retention, and input from faculty, staff, and the broader community.

Additionally, the bill mandates that participating institutions report on their expenditures within 180 days of receiving a grant, with a follow-up report detailing remaining fund usage. The Secretary of Higher Education is responsible for reviewing these reports and may seek further input from faculty and staff. The funding will be sourced from both the General Fund and federal funds under the American Rescue Plan, ensuring that any unspent funds at the end of the fiscal year are redistributed to minority-serving institutions on a per-student basis.