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 granted to recipients, with a maximum award amount of $80,000 over four years, contingent upon compliance with service requirements. It outlines the terms of contracts between the department and recipients, including penalties for non-compliance, and provides for the release of recipients from contracts under certain circumstances. Additionally, the department is required to report annually on the program's activities, including the number of awards given, completion rates, and the impact on designated underserved areas.