Mayor Adams launches historic medical debt relief program, 35,000 New Yorkers forgiven of debt worth $80 million

Mayor Eric Adams announced today that 35,000 New Yorkers will be relieved of $80 million in medical debt, marking the first round of a plan to provide extensive debt relief.

This effort, the largest municipal medical debt relief program in the country, will ultimately aim to assist up to 500,000 New Yorkers over the next three years.

Beginning this week, letters will be sent to those eligible, notifying them that their medical debt has been forgiven. The program comes as part of the city’s $18 million investment to address the overwhelming issue of medical debt, which is the primary cause of bankruptcy in the United States.

“Working-class families should not have to choose between paying medical bills and keeping a roof over their heads, and thanks to our administration, they won’t have to,” Mayor Adams said in a statement.

Adams first announced this new debt program in 2024, stating the administration is looking to forgive $2 billion throughout the next three years. 

Chosen participants do not have to apply for the program and are chosen based on income and debt. Photo via Getty Images

“With this debt relief program, our administration is following through on its promise to relieve $2 billion in medical debt, starting with putting $80 million back in the pockets of working-class New Yorkers this week alone. Our administration is committed to making New York City more affordable and the best place to raise a family,” he said. 

The Mayor’s initiative is in partnership with Undue Medical Debt, a national nonprofit organization based in New York City that specializes in purchasing and forgiving medical debt.

To be qualified for the program, participants must be at or below 400 percent of the Federal Poverty Line, or be carrying medical debt equal to 5 percent or more of annual household income. 

Anne Williams-Isom, deputy mayor for health and human services highlighted the significance of the program for low-income New Yorkers. According to Williams-Isom, the chosen New Yorkers will receive a letter in the mail within the next week stating their debts have been forgiven with no costs or tax penalties involved. 

New York City will see $2 Billion in relief for up to 500,000 New Yorkers over the next three years.Photo via Getty Images

Dr. Michelle Morse, acting commissioner of the Department of Health and Mental Hygiene, said this timely initiative can finally take the stress off of struggling locals. The team looks to forgive 500,000 over the next three years. 

“Receiving life-saving medical care should not lead to financial stress, yet countless New Yorkers have faced that reality for years. We are eager to get much-needed debt relief to as many New Yorkers as possible, as soon as possible,” Morse said. 

To support this initiative, Undue Medical Debt and the Mayor’s Fund to Advance New York City will seek additional funding to expand the program over the next three years. New Yorkers interested in contributing to this cause can donate online.

“While we know medical debt relief isn’t a silver bullet, it provides patients a clear runway for re-engaging in the health care system by quickly and efficiently removing an unnecessary barrier to care,” Allison Sesso, CEO of Undue Medical Debt, said.

With over 100 million Americans holding some form of medical debt, totaling more than $195 billion nationwide, this program stands to significantly impact the financial stability of thousands of families in New York City, particularly in communities disproportionately affected by this burden.

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