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 vary based on the type of institution.

Additionally, the bill mandates that student housing and life projects adhere to space and design standards set by the higher education department, with costs exceeding these standards not covered by the state. It allows for the possibility of waiving match requirements if an institution cannot afford them, subject to legislative approval. Furthermore, funds cannot be appropriated for construction until at least 50% of the design phase is completed, and institutions must provide documentation regarding student populations and compliance with space standards.