The proposed bill, titled the "Medical Residency Loan Repayment Act," aims to establish a program that provides loan repayment awards to medical residents and fellows who commit to practicing medicine in New Mexico for a minimum of five consecutive years. The bill outlines the definitions of key terms, including "applicant," "award," "medical resident," and "medical fellow," and specifies the criteria for eligibility, such as completion of a medical residency or fellowship program in New Mexico and licensure to practice medicine in the state. The Department of Higher Education is granted the authority to administer the program, including the ability to grant awards, enforce contracts, and cancel contracts for reasonable cause.

Additionally, the bill creates the "medical residency loan repayment fund," which will be funded through appropriations, repayments, and other income sources. An appropriation of $3 million from the general fund is allocated for the fund for fiscal year 2026 and subsequent years. The Department is also required to submit annual reports detailing the program's activities, awards granted, and any contract enforcement actions taken. The provisions of the act are set to take effect on July 1, 2025.