This 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. An annual distribution of five percent of the average year-end market values of the trust fund will be made to the program fund, which is also created to support physician graduate medical education programs, particularly in rural and underserved areas.

The program fund will receive appropriations to support various initiatives over the fiscal years 2026 through 2028, including funding for programs in the process of accreditation and those that have recently been accredited. The bill also outlines that any unspent funds at the end of the fiscal year will revert back to the trust fund. Additionally, a significant transfer of $100 million from the general fund to the trust fund is mandated to support these initiatives.