This bill establishes a new category of State school aid specifically for certain school districts located in municipalities that are part of the Highlands or Pinelands preservation areas. A "qualifying school district" is defined as one that has experienced a net loss in State school aid during the 2024-2025 school year compared to the 2017-2018 school year, has a resident enrollment of over 500 students, and is entirely situated in a municipality where at least 10 percent of the land is designated as part of the Highlands or Pinelands preservation areas. Notably, regional school districts are excluded from this definition, except for all-purpose regional school districts that meet the specified criteria.

Under the provisions of the bill, qualifying school districts will be eligible for additional State school aid calculated at $250 per acre of land in the preservation areas within their municipality. However, there are caps on the total aid a district can receive based on its enrollment: districts with between 500 and 1,000 students cannot receive more than $2,500,000, while those with over 1,000 students are limited to $5,000,000 in aid per school year. The bill is set to take effect immediately and will apply to the first full school year following its enactment.