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 scholarships or financial aid programs exclusively for students who are citizens or permanent residents of countries or territories designated by the U.S. State Department as controlled by terrorist organizations. It directly affects all public and private higher education institutions in New Jersey that receive state funding. Violations would result in the institution losing access to state operating funds, education facility bonds, general obligation bonds, and state scholarship programs distributed through the Higher Education Student Assistance Authority. The law takes effect immediately upon passage.