Press Releases

Mayor Adams Cancels Nearly $135 Million in Medical Debt for Working-Class New Yorkers, Celebrates Opening of Eight New Financial Empowerment Centers at Select NYC Health + Hospitals Locations to Help New Yorkers Avoid Future Medical Debt

Pioneering Program Launched by Mayor Adams Cancels Medical Debt for Over 75,000 New Yorkers in Partnership with Undue Medical Debt

Oct 22, 2025

New York City Mayor Eric Adams today announced over 75,000 New Yorkers. Last year, Mayor Adams launched a pioneering program that — through an $18 million investment by the city over three years — will relieve some or all of the medical debt for 500,000 working-class New Yorkers on a one-time basis, totaling over $2 billion in eliminated debt. In addition, Mayor Adams today celebrated the opening of eight new ‘NYC Financial Empowerment Centers’ run by the New York City Department of Consumer and Worker Protection (DCWP) at select NYC Health + Hospitals locations across the health system to help New Yorkers better plan and avoid going into medical debt in the future. This announcement continues to fulfill two more key commitments made during Mayor Adams’ 2024 State of the City address, to relieve $2 billion of New Yorkers’ medical debt and embed additional financial counselors in New York City hospitals — providing more New Yorkers with access to vital personalized financial guidance.

“For too long, and for too many, medical debt 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 through no fault of their own. Working-class New Yorkers shouldn’t have to live in fear that getting sick will break their bank, and, thanks to our administration, they won’t have to,” said Mayor Adams. “We are proud to announce another milestone in our initiative to abolish medical debt for New Yorkers. Since launching our program with Undue Medical Debt, we have cancelled nearly $135 million in medical debt for over 75,000 people and we will not stop until we reach our goal of providing $2 billion in relief for half a million of our city’s residents. We are also fulfilling our promise to place more Financial Empowerment Centers where they are needed: in our hospitals so that we can give people the tools they need to avoid going into medical debt from the start by making smarter financial decisions. Through the largest municipal medical debt relief program in the nation and providing greater access to financial resources, we are delivering debt relief and peace of mind to New Yorkers across the five boroughs, as we put money back in their pockets and make our city more affordable every day.”

“Our administration is taking a range of steps to support working-class families, and this program is one of these steps,” said Deputy Mayor for Health and Human Services Suzanne Miles-Gustave. “We expect more relief to come in the coming months and years for hundreds of thousands more families. Thank you to our partners at Undue Medical Debt and the Mayor’s Fund for helping lift this financial weight from the shoulders of so many New Yorkers.” 

“Erasing medical debt isn’t just a gesture of compassion — it’s a necessity when so many New Yorkers are often forced to choose between their health and basic needs like food or housing,” said New York City Department of Health and Mental Hygiene Acting Commissioner Dr. Michelle Morse. “We must create a more equitable and affordable system so that New Yorkers do not fear financial ruin after seeking necessary medical care. By relieving debt burden, we’re providing people with the freedom to prioritize their health while making our city stronger and more accessible for everyone.” 

“Improving our financial health can have direct impacts on our physical and mental health,” said DCWP Commissioner Vilda Vera Mayuga. “Today, we’re encouraging all New Yorkers to get a dose of financial empowerment at one of our Financial Empowerment Centers! As a client of our Financial Empowerment Centers myself, I know firsthand how liberating it is to set yourself up for long-term financial success. Thank you to Mayor Adams and to NYC Health + Hospitals for partnering with us to help New Yorkers learn smart money habits and strengthen their financial health.”

“Financial stressors are one of the most common non-medical needs identified by NYC Health + Hospitals patients and there is a close connection between wealth and health,” said NYC Health + Hospitals Vice President and Chief Population Health Officer Dr. Nichola Davis. “By bringing Financial Empowerment Center services to our health system, we are providing our patients with information and tools to improve their financial health as well as their physical and mental health. We are grateful to Mayor Adams and DCWP for their leadership to alleviate financial stress experienced by our patients.”

“We’re honored to continue our partnership with the City of New York to bring medical debt relief to more New Yorkers burdened by these unpayable debts,” said Allison Sesso, president and CEO, Undue Medical Debt. “Removing financial barriers to care is more important than ever. This initiative helps families breathe easier and re-engage with the health care system without fear of financial ruin.”

About New York City’s Medical Debt Relief Program

Medical debt is the number one cause of bankruptcy in the United States, disproportionately affecting uninsured, under-insured, and low-income households. The city has partnered with Undue Medical Debt, a national New York City-based nonprofit specializing in buying and ultimately wiping out medical debt to acquire debt portfolios from health care providers and hospitals across New York City, as well as from collection agencies.

There is no application process for New York City’s one-time debt relief program, which is the largest municipal initiative of its kind in the country. Instead, Undue Medical Debt will purchase bundled, qualifying medical debt portfolios from providers, like hospitals and commercial debt buyers, to then abolish that debt at pennies on the dollar. Debt relief recipients will then be notified that their debt has been bought by a third party and erased, with no strings attached. Recipients owe nothing on the debt and face no tax penalty. New Yorkers who fit one of the two eligibility criteria will qualify for the debt relief if their debt has been acquired: 1) having an annual household income at or below 400 percent of the Federal Poverty Line or 2) having medical debt equal to 5 percent or more of their annual household income.

To supplement the city’s investment, Undue Medical Debt and the Mayor’s Fund to Advance New York City will also partner to raise additional funding over three years in order to relieve more medical debt, New Yorkers interested in helping relieve medical debt can donate online.

More than 100 million Americans hold some amount of medical debt, with the total amount nationwide exceeding $220 billion. Carrying medical debt can undermine financial stability and mobility, as it can affect credit scores and put individuals and families in difficult positions to choose between care and other necessary expenses. Nationwide, , and while medical debt may be held by those without insurance, even those with insurance are at risk of carrying medical debt.

About New York City’s Financial Empowerment Program

NYC Financial Empowerment Centers provide free one-on-one financial counseling and coaching services to help New Yorkers reach their financial goals. The Financial Empowerment Centers can help New Yorkers learn how to create action plans and take small but meaningful steps to manage their money, establish or improve their credit, set up a spending plan, open a safe and affordable bank account, contact their lenders about debt, including student loans and medical debt, develop a strategy to reduce debt or lower payments, and more.

Building on DCWP and NYC Health + Hospitals’ existing partnership in providing access to free tax preparation services through NYC Free Tax Prep at select health system sites, this new expansion will offer all of the services available at NYC Financial Empowerment Centers across the city but now conveniently located where many New Yorkers receive health care. Research shows that offering financial counseling and coaching in clinical settings can improve quality of life and overall health outcomes. This collaboration ensures that more New Yorkers can access the financial care they need to improve their lives and achieve their goals.

Since the start of the Adams administration, DCWP’s Financial Empowerment Centers have helped tens of thousands of New Yorkers improve their credit, reduce their debt by more than $45.1 million, and increase their savings by $5.1 million through free one-on-one financial counseling services. There are over 40 centers across the five boroughs with services available in 11 languages. New Yorkers 18 and older can visit DCWP’s Financial Counseling webpage or call 311 and say “financial counseling” to schedule an appointment or for more information.

New Yorkers can now access free one-on-one financial counseling and coaching services at the following NYC Health + Hospitals locations:

BRONX

NYC Health + Hospitals/Gotham Health, Tremont
1920 Webster Avenue, Bronx, NY 10457
Mondays and Tuesdays, 9:00 AM – 5:00 PM

NYC Health + Hospitals/Jacobi
1400 Pelham Pkwy S, Building 8 Atrium, Bronx, NY 10461
Wednesdays and Thursdays, 9:00 AM – 5:00 PM

BROOKLYN

NYC Health + Hospitals/Gotham Health, East New York
2094 Pitkin Ave, 2nd Floor, Room 202, Brooklyn, NY 11207
Tuesdays and Thursdays, 9:00 AM – 5:00 PM

NYC Health + Hospitals/Kings County
451 Clarkson Avenue, E Building, Main Lobby, Brooklyn, NY 11203
Mondays and Wednesdays, 9:00 AM – 5:00 PM

MANHATTAN

NYC Health + Hospitals/Bellevue
462 First Avenue, New York, NY 10016
Finance Department, First Floor, Hospital Building
Tuesdays and Thursdays, 9:00 AM – 5:00 PM

NYC Health + Hospitals/Gotham Health, Gouverneur
227 Madison Street, 5th Floor Lobby, New York, NY 10002
Mondays and Wednesdays, 9:00 AM – 5:00 PM

QUEENS

NYC Health + Hospitals/Elmhurst
79-01 Broadway, Main Lobby, Broadway Entrance, Elmhurst, NY 11373
Mondays and Wednesdays, 9:00 AM – 5:00 PM

NYC Health + Hospitals/Queens
82-70 164th Street, Main Building, Conference Room D, Jamaica, NY 11434
Tuesdays and Thursdays, 9:00 AM – 5:00 PM

“What They’re Saying:” Undue Medical Debt Recipients

“I want to thank Undue Medical Debt president, Allison Sesso, for the great help in solving my medical debt and [for leading] such a great program,” said Efrain, Undue Medical Debt Recipient. “I also want to thank Mayor Eric Adams for approving such a great program. Thank you so much.”

“I had no idea this service existed and was quite concerned that it might be a scam. After some research I was overjoyed to find that it is totally real. It is heartwarming to know that there are still so many people committed to fighting for social and economic justice,” said Hector R., Undue Medical Debt Recipient. “Due to some chronic illnesses and unfortunate accidents [over] the past 10 years, I have accumulated significant medical debt.  As a 73-year-old living on social security, it is impossible to keep up with copayments, coinsurance, and uncovered prescription drug costs. By relieving me of $5,348 of medical debt, you have contributed significantly to my mental and financial health. Thank you so much.”

“I am writing to express my heartfelt gratitude for the cancellation of my medical debt by NYC and Undue Medical Debt. The burden of medical expenses has been overwhelming, and your assistance has provided me with immense relief and peace of mind,” said M., Undue Medical Debt Recipient. “Your generosity and support have made a significant impact on my life, allowing me to focus on my health and well-being without the constant worry of financial strain. I am truly grateful for your dedication to helping individuals like myself, and I cannot thank you enough for your kindness. Once again, thank you for your invaluable support and for giving me a fresh start. I am deeply appreciative of the work you do and the positive difference you make in the lives of so many.”

“For me it was a gift from God and then from you. [I] ask him for so much, that he open the way for me to get ahead and out of all my problems,” said Usi Alfonsina G., Undue Medical Debt Recipient. “And I receive this letter. Thank you very much from the bottom of my heart.”

“I have been in medical debt for many years,” said Juan, Undue Medical Debt Recipient. “Thanks to Undue Medical Debt, I’m no longer in debt.”

“I got into a tragic car accident. My car was struck by a gas truck. I was ejected out of my vehicle and my body rolled onto the highway,” said Deandrea Dey, Undue Medical Debt Recipient. “The damages I went through felt so unreal. I had the most amazing staff. They were so surprised by how much fight I had to recover. There is plenty more to this story.”

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