The Veterinary Medical Loan Repayment Act establishes a program aimed at addressing the shortage of food-animal veterinarians in designated underserved areas of New Mexico. The act empowers the higher education department to create rules for the program, including eligibility criteria for applicants, which require them to be licensed veterinarians in New Mexico, residents of the state, and employed full-time in private practice within designated areas. The act also establishes a veterinarian selection committee responsible for selecting up to ten qualified applicants annually and designating areas in need of veterinary services.

The act creates a nonreverting "veterinary medical loan repayment fund" to finance the awards, which can reach up to $80,000 over four years, contingent on compliance with service requirements. It outlines the terms of contracts between the recipients and the department, including penalties for non-compliance, and allows for the cancellation of contracts under certain conditions. Additionally, the department is required to provide annual reports detailing the program's effectiveness, including the number of awards given, completion rates, and the impact on designated underserved areas.