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

New Jersey's S 3208 prohibits public colleges and universities from receiving state funds if they boycott or divest from Israel-supporting businesses or Israeli entities. Specifically, institutions violating this rule lose access to state operating aid, education facility bonds, general obligation bonds, and student scholarship funds administered by the Higher Education Student Assistance Authority. The bill defines prohibited actions as boycotting Israel-related businesses, divesting due to a company's support for Israel, or participating in the Boycott, Divestment, and Sanctions (BDS) movement. It explicitly excludes divestment for prudent economic reasons, focusing only on actions tied to Israel-related pressure campaigns.