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 both four-year and two-year educational institutions in New Mexico. The fund will be administered by the higher education department and will consist of various sources of revenue, including appropriations and donations. Eligible uses of the fund include major capital projects for research, instruction, student housing, and student life projects, with specific funding criteria outlined for both four-year and two-year institutions.

Additionally, the bill sets forth match requirements for funding, which vary based on the type of institution and project. For instance, four-year institutions must provide a minimum of 25% to 50% matching funds depending on the project type, while two-year institutions must provide at least 50% for student housing and life projects. However, the bill allows for the possibility of waiving these match requirements if the educational institution demonstrates an inability to afford the match. The legislation also mandates that funding for construction cannot be appropriated until at least 50% of the design phase is completed, and it requires state universities seeking funding for division 1 athletic facilities to meet specific graduation rate criteria.