Prohibits institution of higher education which boycotts or divests from Israel-supporting or Israeli businesses from receiving State funds.

This bill prohibits New Jersey public and private colleges and universities from receiving state funding if they boycott or divest from Israel-supporting businesses or Israeli businesses. Specifically, institutions that engage in actions defined as boycotting Israeli goods/entities, divesting due to a company’s support of Israel (including through "in-kind" or for-profit ties), or participating in the Boycott, Divestment, and Sanctions (BDS) movement would lose access to state operating aid, education facility bonds, general obligation bonds, and state student scholarship funds. The bill explicitly excludes divestment for "prudent economic reasons," such as financial risk management. It applies to all parts of an institution, including endowments and departments, and defines key terms like "boycott" and "divestment" in plain language. The law takes effect immediately upon enactment.