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

This bill prohibits New Jersey public and private colleges and universities from considering "cultural competency skills" or "knowledge of any particular ethnic or religious group" when reviewing candidates for hiring or promotion. It allows exemptions for roles where such skills are essential (e.g., diversity officers), as determined by the state education secretary. Institutions found non-compliant face loss of state funding for operational and capital costs. The law applies immediately to all higher education personnel decisions, excluding positions requiring specific cultural expertise.