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

This bill prohibits New Jersey public and private institutions of higher education from receiving state funding if they boycott or divest from Israel-supporting businesses or Israeli businesses. Specifically, it blocks state operating aid, state bond proceeds, and student financial aid for institutions that boycott Israel's goods, boycott entities doing business with Israel, divest due to a company's support of Israel, or participate in the Boycott, Divestment, and Sanctions (BDS) movement. The law excludes divestment for "prudent economic reasons" and applies to all parts of an institution, including endowment funds. The bill takes immediate effect and directly impacts colleges receiving any state education funding.