Expands permitted investments of school district and local unit funds.

This bill (S 2176) expands the types of investments school districts and local units in New Jersey can make with public funds. It adds new permitted options including corporate debt obligations (with "A" ratings), bankers' acceptances (up to 180 days), and commercial paper (up to 270 days), all requiring specific credit ratings for safety. School districts must still follow strict rules, like using third-party custodians and adhering to maturity limits (max 397 days). The change directly affects school districts managing cash reserves, allowing them to potentially earn more interest while maintaining risk controls. The bill is currently in committee after being introduced in January 2026.