The proposed bill enacts the "Medical Residency Loan Repayment Act," which aims to provide financial assistance to medical residents and fellows in New Mexico by granting loan repayment awards. The bill establishes a new section in Chapter 21 NMSA 1978 that outlines definitions, powers, and duties of the higher education department, as well as the criteria for applicants seeking awards. Key provisions include the requirement for applicants to have completed a medical residency or fellowship, agree to practice in New Mexico for five consecutive years, and the establishment of a medical residency loan repayment fund to manage the financial resources allocated for this purpose.

Additionally, the bill details the contractual obligations between the department and the award recipients, including terms for compliance and potential reimbursement if the terms are not met. It also mandates the department to submit annual reports to the governor and legislature regarding the program's activities and outcomes. An appropriation of $3 million from the general fund is designated for the medical residency loan repayment fund for fiscal year 2026 and beyond, ensuring that funds are available to support the program's objectives. The act is set to take effect on July 1, 2025.