The Veterinary Medical Loan Repayment Act establishes a program aimed at alleviating the student loan burden for veterinarians who commit to serving in designated underserved areas in New Mexico. The act outlines the powers and duties of the higher education department, including the creation of a veterinarian selection committee responsible for selecting qualified applicants and identifying areas in need of food-animal veterinarians. Eligible applicants must be licensed veterinarians in New Mexico, employed full-time in private practice within these underserved areas, and must meet specific criteria set by the department. The act also details the award criteria, which includes the amount of loan repayment based on the recipient's total educational debt and the characteristics of their practice.

Additionally, the act creates the "veterinary medical loan repayment fund," which will be financed through appropriations, gifts, and grants, and will be used to make awards to recipients who comply with their contracts. The department is tasked with monitoring the program's effectiveness and reporting annually to the governor and legislature on various metrics, including the number of awards given and the completion rates of recipients. An appropriation of $5 million is allocated from the general fund to support the program from fiscal years 2026 through 2031. The act also includes provisions for penalties if recipients fail to comply with contract terms, as well as conditions under which a recipient may be released from their contract without penalty.