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 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 match requirements outlined for both design and construction phases. Notably, the bill allows for the waiver of match requirements if an educational institution demonstrates financial inability to meet them.

Additionally, the bill specifies initial funding priorities, which include significant allocations for projects such as the new school of medicine at the University of New Mexico and various student life and housing projects across the state. The legislation mandates that funding for construction cannot be appropriated until at least fifty percent of the design phase is completed, and it requires educational institutions to provide documentation regarding student populations and compliance with space standards to receive funding.