Mayor Adams wipes out $80m in medical debt for 35,000 New Yorkers

New York City Mayor Eric Adams announced the elimination of $80 million in medical debt for 35,000 working-class New Yorkers. This effort, part of a $2 billion debt relief program, targets the crippling financial burden that medical expenses place on low-income families, uninsured individuals, and the under-insured.

“Working-class families should not have to choose between paying medical bills and keeping a roof over their heads,” Mayor Adams declared. “Our administration is delivering on its promise to relieve $2 billion in medical debt, starting with $80 million this week alone. We’re making New York City more affordable and the best place to raise a family.”

The program, a partnership with the nonprofit Undue Medical Debt, aims to alleviate the financial strain caused by medical expenses—the leading cause of bankruptcy in the U.S. By purchasing and erasing medical debt portfolios at pennies on the dollar, the initiative will eventually relieve over 500,000 New Yorkers of their debt without any application process or tax penalties.

“In thousands of mailboxes this week, New Yorkers will find a letter from Mayor Adams and Undue Medical Debt stating their outstanding medical debt has been abolished,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “This is just the beginning of a program set to touch half a million residents, freeing them from the grip of medical debt.”

Acting DOHMH Commissioner Dr. Michelle Morse emphasized the program’s importance: “Receiving life-saving medical care should not lead to financial stress. We’re eager to provide debt relief so that New Yorkers can focus on their health and wellness without the fear of financial ruin.”

Undue Medical Debt CEO Allison Sesso praised the collaboration: “We’re thrilled to partner with the city to alleviate the emotional and financial toll of medical debt. This initiative removes barriers to care, giving patients a clear path to re-engage with the healthcare system.”

The initiative has garnered widespread support from local leaders and organizations. “Medical debt can feel insurmountable for many families,” said Assemblymember Nily Rozic. “This relief provides much-needed breathing room for those who need it most.” Queens Borough President Donovan Richards Jr. added, “No one should face financial ruin due to illness or injury. This program helps lift New Yorkers out of poverty and onto paths of prosperity.”

With more rounds of debt relief on the horizon, New York City is setting a national precedent, addressing a pervasive issue that has long undermined financial stability and health equity.