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 act also outlines the formation of a veterinarian selection committee responsible for selecting qualified applicants and designating areas in need of veterinary services.

The act creates a nonreverting "veterinary medical loan repayment fund" to finance the awards granted to recipients, with specific terms for repayment and penalties for non-compliance. Recipients may receive up to $80,000 over four years, contingent upon fulfilling service requirements. The department is tasked with reporting annually on the program's effectiveness, including data on awards, completion rates, and the impact on veterinary services in underserved areas. The act also includes provisions for contract cancellation and release from obligations under certain circumstances, ensuring that the program remains flexible and responsive to the needs of both recipients and the communities they serve.