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. The bill appropriates $1,500,000 from the General Fund to this program. 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 report annually on the distribution of grants, and the authority will compile this information for a report to the Governor and the Legislature.