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NYC Expands Medical Debt Relief With $18 Million Plan to Reach 500,000 Residents

The city is partnering with a nonprofit that buys bundled medical debt to erase balances automatically.

Overview

  • Mayor Eric Adams announced the multi-year expansion on Oct. 22, adding a one-time relief effort targeting working-class New Yorkers.
  • Officials report nearly $135 million in medical debt canceled for more than 75,000 residents since the program launched in 2024.
  • The program operates with Undue Medical Debt purchasing eligible portfolios at steep discounts, with no applications or tax penalties for recipients.
  • Eligibility applies to households at or below 400% of the Federal Poverty Line or to those whose medical debt equals at least 5% of annual income.
  • Eight Financial Empowerment Centers opened at NYC Health + Hospitals sites in four boroughs, and the city projects the investment could translate to over $2 billion in nominal relief over three years.