The proposed bill enacts the "Physician Loan Repayment Act," which aims to assist physicians in repaying their educational loans in exchange for their commitment to practice in designated health professional shortage areas in New Mexico. The bill establishes eligibility requirements for applicants, who must be licensed physicians and residents of New Mexico, and outlines the powers and duties of the higher education department in administering the program. It includes provisions for the selection criteria, contract terms, and penalties for non-compliance, ensuring that recipients fulfill their service obligations.

Additionally, the bill creates the "physician loan repayment fund," which will be used to make awards to eligible recipients. The fund will consist of various sources of income, including appropriations and donations, and will be managed by the higher education department. An appropriation of $15 million from the general fund is allocated to support the fund for fiscal year 2026 and beyond. The department is also required to provide annual reports detailing the program's activities, including the number of awards given, completion rates, and the impact on underserved areas in the state.