Prohibits institution of higher education from establishing scholarship fund or student assistance program limited to students who are citizens or permanent residents of country or territory controlled by terrorist organization.

This bill prohibits New Jersey colleges and universities from creating scholarship programs or student aid limited to students who are citizens or permanent residents of countries or territories controlled by a foreign terrorist organization designated by the U.S. Secretary of State. It directly affects higher education institutions that might otherwise restrict aid based on students' nationality from such regions. Violating institutions lose access to state operating funds, state bond proceeds (including from the New Jersey Educational Facilities Authority), and state scholarship funds distributed through the Higher Education Student Assistance Authority. The law takes effect immediately upon enactment.