The bill establishes the "Higher Education Major Projects Fund" as a nonreverting fund within the state treasury, aimed at supporting major capital outlay projects at educational institutions. The fund will be composed of various sources, including appropriations and donations, and will be administered by the higher education department. Eligible uses of the fund include major capital projects costing $50 million or more for four-year institutions, as well as student housing and life projects for both two- and four-year institutions. The bill outlines specific criteria for funding, including matching requirements for design and construction phases, which vary based on the type of institution.

Additionally, the bill allows for the possibility of waiving match requirements if an educational institution demonstrates an inability to afford the required match. The higher education department is tasked with adopting space and design standards for student housing and life projects, and funding for construction cannot be appropriated until at least 50% of the design phase is completed. Institutions must also provide documentation regarding student populations and compliance with space standards to qualify for funding.