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 these underserved areas. The department will appoint a veterinarian selection committee to oversee the selection of up to ten qualified applicants annually and to designate areas in need of veterinary services.

The act also creates a nonreverting "veterinary medical loan repayment fund" to finance the awards granted to recipients, with a maximum total award of $80,000 over four years, contingent upon compliance with service requirements. Recipients who fail to meet their contractual obligations may face penalties, including repayment of awarded funds with interest. The department is tasked with reporting annually to the governor and legislature on the program's effectiveness, including data on awards, completion rates, and the impact on veterinary services in underserved areas.