Prohibits institution of higher education from using cultural competency as criteria for consideration in making certain personnel determinations.

New Jersey Assembly Bill A4421 prohibits colleges and universities from using "cultural competency skills" or "knowledge of any particular ethnic or religious group" as criteria when hiring or promoting staff. The bill directly affects public and private higher education institutions in New Jersey, with an exemption for roles where such skills are essential (determined by the Secretary of Higher Education). Institutions found non-compliant lose eligibility for state funding covering operational and capital costs. The law takes effect immediately upon enactment.