New York City Mayor Eric Adams announced that the city has canceled nearly $135 million in medical debt for over 75,000 working-class residents. Launched last year with the nonprofit Undue Medical Debt, the program ultimately aims to relieve $2 billion in debt for up to 500,000 New Yorkers, making it the largest municipal medical debt relief effort in the country.
The announcement included the opening of eight new Financial Empowerment Centers in the Bronx, Brooklyn, Manhattan, and Queens. Run by the Department of Consumer and Worker Protection, the centers provide free, one-on-one financial counseling to help residents manage debt, improve credit, create spending plans, and avoid future medical debt. Placing the centers in hospitals allows more New Yorkers to access financial guidance where they receive care.
Mayor Adams highlighted the personal and financial toll of medical debt, explaining that it has “not only been a barrier for those looking to get the health care they need, but also a major financial and emotional stressor for families.” He added that working-class New Yorkers “shouldn’t have to live in fear that getting sick will break their bank,” emphasizing that the program is “delivering debt relief and peace of mind to New Yorkers across the five boroughs.”
Deputy Mayor for Health and Human Services Suzanne Miles-Gustave emphasized that the initiative is part of a broader effort to support working-class families. “We expect more relief to come in the coming months and years for hundreds of thousands more families,” she added, acknowledging the contributions of Undue Medical Debt and the Mayor’s Fund in easing the financial strain on residents.
Medical debt remains the leading cause of bankruptcy in the United States, disproportionately affecting uninsured and low-income households. Residents qualify for the city’s one-time relief program if their annual household income is at or below 400 percent of the federal poverty line, or if their medical debt equals 5 percent or more of their income. Recipients are notified that their debt has been purchased and erased, with no repayment or tax consequences.
With expanded financial services and ongoing debt relief, city officials aim to equip New Yorkers with tools to achieve long-term financial stability while reducing the stress associated with medical expenses.
