Defines "diversity, equity, and inclusion" as (a) influencing hiring or employment practices with respect to race, color, sex, ethnicity, or national origin, other than through the use of color-blind and sex-neutral hiring processes in accordance with any applicable state or federal antidiscrimination law; (b) promoting or providing special benefits to individuals on the basis of race, color, ethnicity, or national origin; (c) promoting policies or procedures designed or implemented in reference to race, color, ethnicity, or national origin, other than to comply with an applicable court order or state or federal law; (d) conducting trainings, programs, or activities designed or implemented in reference to race, color, ethnicity, or national origin, except for trainings, programs, or activities that are for the sole purpose of ensuring compliance with an applicable court order or state or federal law; defines "sex" as an individual's biological sex at birth; prohibits any state entity from establishing a DEI office or hiring employees to promote DEI; prohibits giving employment preference based on DEI principles or a DEI statement; prohibits requiring DEI training for employees; prohibits DEI instruction in public and public charter primary and secondary schools, and specifies prohibited concepts, with exceptions for theoretical discussions that include alternate theories, and discussions of historical and current events; protects free speech; provides a mechanism for students, parents, guardians, and employees to complain of violations; requires annual reporting on the number and nature of violations and how they were handled by school principals, county superintendents, and state superintendents; prohibits requiring county education boards and public charter school employees to use a student's preferred pronouns, and provides legal protections for employees who do not use a student's preferred pronouns; prohibits state institutions of higher education from hiring DEI officers or having DEI offices, or giving DEI preferences in hiring or enrollment; provides protections for certain academic research or course instruction, registered student organizations, guest speakers on campus, services for the disabled or people with other physical or mental health conditions, activities to prevent sexual harassment or to meet accreditation standards, STEM programs for women, donor-designated scholarships, single-sex programs and facilities, and activities necessary to comply with state and federal antidiscrimination laws; allows institutions of higher education to seek grants that support first-generation or low-income students, or underserved student populations; requires state institutions of higher education to report to the Joint Committee on Education on its compliance efforts, and post the report on the institution's website; prohibits funding for any institution that fails to file such report in a given fiscal year; re-allocates any residual DEI funding from fiscal year 2025-26 to merit scholarships for lower-income and middle-income students, first generation college students, or to reduce tuition and fees for resident students; prohibits state institutions of higher education from discriminating on the basis of race or ethnicity in administration of education programs, activities, or with respect to admission or employment; requires state institutions of higher education to protect the rights to free speech and expression; requires each state campus to report to the Higher Education Policy Commission or Council for Community and Technical College Education on the number, nature, and disposition of any violations; requires state institutions of higher education to be officially neutral on questions of unconscious or implicit bias, cultural appropriation, identity group allyship, micro aggressions, and related concepts; bans training on additional enumerated DEI concepts, and prohibits requiring DEI statements in exchange for employment, admissions, promotion, contract renewal, or other preferential treatment.