States and cities that have embraced medical-debt relief

Several states and many local governments have launched high-profile programs to erase medical debt or otherwise limit its harm. Examples (as reported in mid-2024 through 2025) include:

New Jersey: The state used public funds and partnerships with nonprofits to forgive large amounts of medical debt for tens of thousands of residents. Governor-led efforts wiped out roughly $100 million in obligations in major rounds.

Connecticut: The state has run multi-million dollar programs to purchase and forgive medical bills for qualifying residents, part of a broader push to erase up to $1 billion over time.

New York, California, Illinois, Colorado, Rhode Island, Vermont, Minnesota and others: These and other states have passed laws or executive actions to limit medical debt reporting, increase charity care requirements, or fund local forgiveness programs. (The exact mix differs by state.)

Cities and counties: Local governments in multiple states have used federal ARPA (American Rescue Plan) funds to buy and cancel medical debt in their communities—often by partnering with nonprofits that specialize in purchasing debt at steep discounts.
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These programs tend to prioritize low-income households, veterans, the uninsured, or residents whose medical debt exceeds a fixed share of income. Nonprofit partners, such as organizations that purchase debt, can turn a small public investment into large amounts of forgiven balances.