Thursday’s move followed pro-Palestinian Arab protests on college campuses across the country that included demands for divestment.
The measure, which passed by a vote of 41 to 7, also would bar the state treasurer and public pension systems from boycotting or divesting from Israel's government or commercial financial activity in that country.
The bill won support from all but one Republican and most Democrats. It now goes to the House, according to AP.
The bill was opposed by some of the Senate’s more liberal members, including Democrat Art Haywood, who said he was concerned that it would restrict free speech.
Fellow Democratic Sen. Steve Santarsiero, who was a sponsor, disputed that the bill infringes on freedom of speech and said students and faculty will still be able to protest peacefully.
Pennsylvania sends more than $2 billion annually to institutions of higher education through direct appropriations and student grants. Much of it goes to the system of 10 state-owned universities, along with Penn State, Temple University, Lincoln University, the University of Pittsburgh and the University of Pennsylvania.
The anti-Israel encampments set up recently at the University of Pennsylvania and at Drexel University in Philadelphia ended after the schools called in police.
They were among many similar encampments set up at campuses across the US. Some of the anti-Israel encampments at universities have been taken down by police officers, while others have been cleared voluntarily following agreements with university administration.
Liz Magill, Penn's president, resigned in December amid pressure from donors and criticism over testimony at a congressional hearing where she was unable to say under repeated questioning that calls on campus for the genocide of Jews would violate the school’s conduct policy. Israel National News - Arutz Sheva