The bill establishes the New Jersey Student Emergency Aid Program within the Higher Education Student Assistance Authority, aimed at providing emergency aid grants to undergraduate students enrolled in public institutions of higher education who face unexpected financial crises. The program will assist with living expenses such as groceries, housing, transportation, and medical costs. The authority will distribute funds to public institutions based on a methodology it will establish, and each institution will be responsible for administering the program, including managing applications and distributing grants. Guidelines for the program will be developed in consultation with relevant stakeholders and will cover eligibility criteria, permissible uses of grants, application procedures, and reporting requirements.

Additionally, the bill creates a nonlapsing, revolving fund known as the New Jersey Student Emergency Aid Program Fund, which will be funded by appropriations from the Legislature and other available sources. An initial appropriation of $1,500,000 from the General Fund is designated for this purpose. The financial aid offices at public institutions will also provide information about other resources available to students. Emergency aid grants will not be classified as financial aid or taxable income for state financial assistance eligibility and cannot be used for tuition or loan repayments. Institutions are required to submit annual reports on the distribution and impact of the grants, which will be summarized by the authority in a report to the Governor and the Legislature.