The proposed amendment to the New Jersey Constitution seeks to enhance transparency and accountability in the appropriation of State funds by prohibiting discretionary appropriations to non-State agencies unless they adhere to a competitive process or a statutory framework. Specifically, any law that allocates funds to a non-State agency must clearly outline the purpose of the appropriation and the method of distribution, ensuring that funds are allocated based on merit-based criteria or established formulas. This amendment aims to eliminate the practice of earmarking funds for specific entities without public oversight, thereby fostering a more equitable and transparent funding process.

Under this amendment, a "non-State agency" is defined broadly to include various entities such as political subdivisions, private institutions of higher education, and other non-governmental organizations, while "State agency" encompasses all departments and instrumentalities within the State government. By mandating that appropriations cannot directly name recipients, the amendment intends to prevent favoritism and ensure that public funds are allocated based on demonstrated needs and competitive criteria, ultimately promoting greater public trust in the legislative process. The amendment will be presented to voters in the next general election for approval.