The bill establishes the "Physician Graduate Medical Education Trust Fund" and the "Physician Graduate Medical Education Program Fund" within the state treasury. The trust fund is created as a nonreverting fund that will consist of various sources such as distributions, appropriations, gifts, grants, and donations. The state investment officer is tasked with investing the funds according to the prudent investor rule and must report quarterly on the investments. Additionally, a distribution of five percent of the average year-end market values of the trust fund will be made annually to the program fund.

The program fund is designated to support physician graduate medical education programs, particularly in rural and underserved areas, with specific allocations for fiscal years 2026 through 2028. The fund will provide financial support for both developing and accredited programs, with a focus on those that have been accredited for less than one year and those that have been accredited for more than one year. The bill also includes a provision for the transfer of $100 million from the general fund to the trust fund to support these initiatives.