The proposed bill enacts the "Physician Loan Repayment Act," which establishes a program aimed at alleviating the educational debt of physicians who commit to practice in designated health professional shortage areas in New Mexico. The bill outlines the powers and duties of the higher education department, including the criteria for eligibility and the process for awarding loan repayments. Eligible applicants must be licensed physicians in New Mexico and demonstrate their intent to serve in underserved areas. The department will investigate applicants' qualifications and may grant awards based on various factors, including the applicant's total medical school debt and the characteristics of the practice location.

Additionally, the bill creates the "physician loan repayment fund," which will be administered by the department and funded through appropriations, gifts, and grants. The fund will be used to make awards to recipients who comply with their contracts, which include a minimum four-year service requirement. The bill also stipulates penalties for non-compliance and allows for the cancellation of contracts under certain conditions. An appropriation of $15 million from the general fund is allocated to support the program in fiscal year 2026 and beyond. The department is required to provide annual reports detailing the program's activities and outcomes.