This bill establishes the "Physician Graduate Medical Education Trust Fund" and the "Physician Graduate Medical Education Program Fund" as nonreverting funds within the state treasury. The trust fund will consist of various sources of revenue, including distributions, appropriations, and donations, and will be managed by the state investment officer, who is required to report on its investments quarterly. Starting July 1, 2027, the trust fund will distribute five percent of its average year-end market value to the program fund annually. The program fund will be administered by the health care authority and is intended to support physician graduate medical education programs in rural and underserved areas.

The bill also includes a provision for the transfer of funds from the general fund, allocating $100 million to the trust fund and $10 million to the program fund upon the act's effective date. Additionally, it appropriates $8 million from the program fund for fiscal years 2027 and 2028 to support various educational initiatives, including funding for programs in the process of accreditation and those that have recently been accredited. The act is declared an emergency measure, necessitating immediate implementation for public health and safety.