A big win for New Yorkers
More than 75,000 residents of New York City no longer bear the burden of unpaid medical debt. Mayor Eric Adams on Wednesday announced that the city has managed to wipe out nearly $135 million in medical debt, which gave thousands of working-class New Yorkers a fresh start economically.
The initiative is part of a broader medical debt relief programme introduced by the Adams administration in 2024. The city collaborated with Undue Medical Debt, a nonprofit that focuses on purchasing and cancelling unpaid medical bills.
“For far too long, medical debt has buried working people,” Adams said. “This program demonstrates that the government can do something to provide families with a fair chance at recovery—both financially and personally.”
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How the program functions
Unlike the majority of government relief programs, there is no application process to take advantage of them. Rather, Undue Medical Debt identifies the eligible individuals through income and debt level.
If a patient earns at or below 400% of the federal poverty guideline, or if her unpaid medical debt represents 5% or more of her annual income, the nonprofit steps in. The nonprofit then purchases the packaged debts in bulk from hospitals or collection agencies, often at a discounted rate, and proceeds to erase them.
Once the debt is wiped out, the recipients receive a letter in the mail guaranteeing their medical debt is gone—no strings attached, no taxes, and no bill to pay.
The strategy, the mayor’s office said, places help right into the hands of those who need it, without generating extra paperwork or stress for them.
$18 million investment, $2 billion in relief
New York City is committing $18 million over three years to this initiative, with the end goal of relief for approximately 500,000 New Yorkers. That money, officials estimate, could represent many times more than $2 billion in erased medical debt.
The impact of this model has already proven to be successful elsewhere in the nation. Undue Medical Debt has forgiven over $11 billion in medical debt nationwide since its launch, freeing millions of Americans from burdens they could never possibly meet.
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Through this collaboration with the nonprofit, New York City made the country’s largest municipality take a giant step towards eliminating medical debt on this scale.
Real Relief for Real People
Neighbours witness the difference on a very intimate level. One of the recipients wrote an emotional thank-you note to city officials and the nonprofit:
“The financial burden of the medical bills has been overwhelming, and your assistance has relieved me a great deal and given me peace of mind,” the person wrote. “Your generosity and compassion have made a tremendous difference in my life and have allowed me to focus on my health and well-being without worrying continuously about financial burdens.”
Instances like these are exactly why the city is adamant that the program is vital. A single hospitalisation is enough to trigger long-term debt that affects a lot of families’ credit scores, housing options, and psychological well-being.
What New Yorkers can do
Mayor Adams underscored that dealing with medical debt isn’t just a government thing—it’s also about community action. Everyone can be of help in the effort by donating to Undue Medical Debt online.
Every dollar donated is estimated to erase about $100 of medical debt, the nonprofit added. That means even small donations can have an enormous impact on the lives of struggling New Yorkers.
A new model for the nation
Medical debt remains one of the biggest financial problems in the United States, affecting roughly 100 million Americans. For New York City, the initiative is a daring step to dial back that crisis.
With $135 million in debt already wiped away and billions more expected to follow, Mayor Adams says the programme proves what’s possible when public funds are used creatively.
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“This is what fairness looks like,” he said. “We’re not just clearing debt—we’re restoring hope.”
