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 (A1625) prohibits New Jersey colleges and universities from creating scholarship funds or student aid programs exclusively for students who are citizens or permanent residents of countries or territories controlled by terrorist organizations designated by the U.S. Secretary of State. It directly affects higher education institutions in New Jersey, requiring them to ensure all scholarship programs are available regardless of a student's nationality tied to such designations. Violations would cut off state funding, including operating aid, state bond proceeds, and student assistance program funds administered by the Higher Education Student Assistance Authority. The law takes effect immediately and does not apply to scholarships open to all students without nationality restrictions.