S.B. No. 2986 amends the Education Code to allow religious organizations to use public school and institution of higher education facilities for hosting religious activities, such as worship services and assemblies. The bill stipulates that such use is permissible only if it does not interfere with the educational mission of the institution, the religious organization pays fair market rental value or reimburses for associated costs, agrees to liability for damages, and adheres to the same rental terms as nonreligious organizations. Additionally, it prohibits any penalties or funding denials from governmental entities based on a school or institution's decision to allow this use.

The bill also clarifies that it does not mandate schools or institutions to permit religious organizations to use their facilities if they choose not to. The changes will not affect existing contracts unless they are renewed or modified after the bill's effective date of September 1, 2025. This legislation aims to provide a framework for the use of public educational facilities by religious groups while ensuring that educational priorities are maintained.

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