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 financed through various sources, including appropriations and donations, to support the loan repayment awards. The department is tasked with reporting annually to the governor and legislature on the program's effectiveness, including data on awards given, completion rates, and the impact on underserved areas. An appropriation of $15 million from the general fund is allocated to the physician loan repayment fund for fiscal year 2026 and beyond to facilitate the program's implementation.