The basics:
- Fifth round erases $59M in medical debt for 48,000 NJ residents
- Total debt relief now exceeds $1.3B for 780,000+ people
- Initiative leverages American Rescue Plan funds and Undue purchases
- Supports residents at/below 400% of federal poverty line or high debt burden
Gov. Phil Murphy announced a fifth round of medical debt relief Oct. 29. The move eliminates over $59 million in debt for more than 48,000 New Jerseyans.
NJBIZ previously reported on the earlier rounds. With this fifth set, the initiative has now topped $1.3 billion forgiven for over 780,000 New Jerseyans.
Through a partnership with Undue Medical Debt, the state leverages American Rescue Funds and Undue purchases large, bundled portfolios of past-due medical debt for pennies or less on the dollar. Then – rather than collect – Undue erases the debt. This latest rounds leverages nearly $500,000 in American Rescue Plan funds (from the state’s investment in medical debt abolishment).
Undue has purchased the debt from a mix of provider partners as well as the secondary market – with Undue-branded letters set to arrive in the mail for those impacted in the coming days.
The initiative supports those who are least able to pay: individuals who qualify at or below 400% of the federal poverty line or have medical debts that total 5% or more of their annual income. There is no application for the one-time abolishment.
‘Providing tangible relief’
In a press release announcing the action, Murphy pointed to the crushing burden of medical debt – often following necessary or life-saving medical care.
“This debt adds up fast and can significantly impact an individual’s life and choices, even preventing them from seeking out future medical treatment,” said Murphy. “We are committed to continuing our momentum to create a better, more affordable, and accessible health care system for all New Jersey residents through our very last day in office.
“By partnering with Undue Medical Debt and implementing forward-thinking policies to prevent our residents from falling into debt, we are providing tangible relief to New Jersey families.”
BREAKING: We are proud to announce our FIFTH round of medical debt relief with @unduemeddebt, eliminating over $59 million of debt for more than 48,000 New Jerseyans.
In total, we have provided over $1.3 billion in tangible relief to families across the Garden State.…
— Governor Phil Murphy (@GovMurphy) October 29, 2025
“Today’s announcement marks another crucial milestone in our ongoing fight against medical debt, a burden that no New Jersey family should have to bear,” said acting New Jersey Health Commissioner Jeff Brown. “With each round of debt relief, we are reinforcing our commitment that health care is a right, not a privilege reserved for those who can afford it.”
Undue Medical Debt CEO and President Allison Sesso said that her organization is very proud to see New Jersey reach this “remarkable milestone.”
“This fifth round of relief demonstrates New Jersey’s unwavering commitment to protecting families from the financial and emotional burden of medical debt,” said Sesso. “I’m also grateful for the continued partnership of providers who recognize that removing these unpayable debts helps their communities thrive.
“No one chooses to get sick, be in an accident or have a chronic illness. We’re thrilled that tens of thousands more people will soon be receiving this good news in the mail.”
