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 limited to 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 all public and private institutions of higher education in New Jersey by banning such restricted funding programs. Violations would result in loss of state operating aid, state bond proceeds, and state student financial aid funds distributed through the Higher Education Student Assistance Authority. The bill was introduced in response to a specific incident at Rutgers University where student demands included accepting Gazan students on scholarships. The policy change focuses on ensuring state-funded educational programs remain open to all eligible students without geographic restrictions tied to terrorism designations.