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 public institutions of higher education in New Jersey. These institutions, which serve a student body comprising at least 50% racial or ethnic minorities, face unique challenges exacerbated by the COVID-19 pandemic. The program aims to provide grants to those colleges and universities that demonstrate 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.

To participate, institutions must submit a comprehensive stabilization plan detailing their fiscal distress, strategies for addressing enrollment declines, and plans for restoring staff and supporting students. The Secretary of Higher Education will review these plans and award grants accordingly. Additionally, institutions are required to report on their expenditures within 180 days of receiving funds, with a second report due 180 days after the first. The bill specifies that the $20 million appropriation will come 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 will be redistributed to minority-serving institutions on a per-student basis.