The bill establishes the "higher education major projects fund" as a nonreverting fund within the state treasury, intended to support major capital outlay projects at educational institutions in New Mexico. 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 four- and two-year institutions and tribal colleges. The bill outlines specific criteria for funding, including matching requirements for design and construction phases, which can be waived under certain circumstances.

Additionally, the bill mandates that student housing and life projects adhere to space and design standards set by the higher education department, with state funding not covering costs that exceed these standards. It also requires educational institutions to provide documentation regarding student populations and compliance with space standards when seeking funding. The match requirements may be waived if the institution demonstrates an inability to afford them, subject to legislative approval. Furthermore, no construction funding can be appropriated until at least 50% of the design phase is completed and relevant documents are submitted to the department and legislative finance committee.