The AMA will work with the medical education community to ensure that attention is given by federal and state policy-makers to the need for maintaining adequate funding for medical education. The following areas should be given priority in planning for financial support: (1) providing graduate and undergraduate medical education in ambulatory care settings in the community, and assuring the availability of adequate supervision for trainees; (2) preserving the potential for educational innovation and the possibility of future change in curriculum and student/resident evaluation; (3) preserving an appropriate mix of qualified generalist and specialist faculty to serve as supervisors for medical students and residents; and (4) increasing the opportunities for primary care faculty members to participate in research. The following should be considered as means to provide financial support for medical education: (1) Create an all-payor funding pool for graduate medical education (GME) and ensure that funding for GME is distributed to the entity that incurs the costs, that is, the sites responsible for the training of residents in accredited residency programs. Funding mechanisms should also facilitate the linkage of undergraduate and graduate medical education, for example in the ambulatory care setting. (2) Develop a federal funding pool to support educational innovation at individual medical schools. The funds could be distributed on a competitive basis, through grants or contracts. (CME Rep. 5-A-94; Reaffirmed by CME Rep. 1, I-96)