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 entities. Specifically, it blocks state operating aid, student scholarships, and certain bonds if an institution boycotts Israeli goods, boycotts companies doing business with Israel, divests due to a company's support for Israel, or supports the BDS movement. Exceptions apply for divestment due to "prudent economic reasons." The law directly affects all higher education institutions in New Jersey, including their endowment funds and departments. It takes effect immediately upon passage.