The Graduate Behavioral Health Scholarship Act aims to provide debt-free education to eligible graduate students pursuing degrees in behavioral health fields, such as counseling, psychology, and social work. The act establishes the "graduate behavioral health scholarship fund," which will be administered by the higher education department. This fund will consist of various sources of income, including appropriations and donations, and will be used to cover tuition, fees, and other related costs for eligible students. To qualify for the scholarship, students must be enrolled full-time in a graduate behavioral health program, maintain good academic standing, and commit to practicing in New Mexico for a duration equal to the time they received the scholarship.

The act also outlines the administration of the scholarship program, including the criteria for student eligibility and the process for distributing funds to eligible institutions based on projected enrollment. Scholarships are awarded for one academic year but can be renewed until the student completes their degree. Additionally, the higher education department is required to report annually on the status of the scholarship fund and the number of students benefiting from the program. An appropriation of $10 million from the general fund is allocated to support the scholarship fund and the administration of the program.