The Medical Residency Loan Repayment Act establishes a program to provide loan repayment awards to medical residents and fellows who commit to practicing medicine in New Mexico for five consecutive years. The Act defines key terms such as "applicant," "award," "department," and "fund," and outlines the powers and duties of the higher education department in administering the program. Eligible applicants must have completed a medical residency or fellowship in New Mexico and must apply for the award, which is contingent upon their continued employment as a physician in the state. The Act specifies criteria for award eligibility, including graduation from an accredited medical school and licensing to practice in New Mexico.

Additionally, the Act creates the "medical residency loan repayment fund," which will be financed through appropriations, repayments, and other income sources. The fund is designated for making awards under the program, and any unspent funds at the end of the fiscal year will not revert to the general fund. The department is also required to submit annual reports detailing the program's activities, including the awards granted and any contract enforcement actions taken. An appropriation of $3 million is allocated from the general fund for the fund's purposes, effective July 1, 2025.