A FY2026 budget investment of $500,000 will help eliminate up to $50 million total in medical debt for Delaware families

WILMINGTON— Governor Matt Meyer today announced significant progress in Delaware’s medical debt elimination initiative, with nearly $19 million in medical debt abolished for more than 18,000 Delawareans so far. The effort is supported by a $500,000 investment included in the FY2026 budget to partner with Undue Medical Debt, a national nonprofit organization, to eliminate up to $50 million in qualifying medical debt for hardworking Delawareans. Undue Medical Debt acquires the most burdensome medical debts in bulk for a fraction of their face value, meaning one dollar can erase $100 of medical debt on average.

“Medical debt can follow Americans for years, limiting opportunity and creating a burden that no one deserves to carry,” Governor Matt Meyer said. “With this first $19 million in debt wiped away, we’re showing what’s possible when states invest in practical solutions to deliver real relief. We’re already helping over 18,000 Delawareans sleep easier this holiday season, and we look forward to more good news in 2026.”

To date, Undue Medical Debt has abolished $18.8 million in medical debt for 18,145 individuals across Delaware. Those receiving relief span all ages, including more than 2,300 young adults aged 18–30, nearly 7,000 residents aged 31–45, more than 4,300 aged 46–60, and over 3,000 Delawareans aged 61 and older. The administration will continue working with Undue Medical Debt to complete additional debt purchases in the months ahead, with the goal of reaching up to $50 million in total medical debt relief for Delawareans.

“We are all just one injury, diagnosis, or accident away from having our lives turned completely upside down,” House Speaker Melissa Minor-Brown said. “For thousands of Delawareans, this initiative is lifting the heavy burden of medical debt and providing real, life-changing relief. I’m proud that the General Assembly was able to help make this possible, and I hope even more residents across our state are able to benefit from this effort.”

“Medical debt is a burden for thousands of Delawareans, negatively impacting one’s quality of life and financial stability. Our collective efforts to provide relief to residents is a welcome surprise for many this holiday season,” Sen. Spiros Mantzavinos said. “By wiping out medical debt, we help families regain financial security and reduce stress so individuals can focus on their health and future rather than past medical emergencies. These efforts have already delivered extraordinary relief throughout Delaware, offering people a second chance when confronted with hurdles they neither anticipated nor deserved.”

“Medical debt is something that is often completely out of people’s control, but it can have real impacts on their lives and even cause them to delay or skip treatment for serious medical issues,” Rep. Kim Williams said. “I’m glad we were able to help and support Delawareans with this initiative, and together with my and Senator Mantzavinos’ bill to remove medical debt from credit reports, even more people will have the opportunity to move forward without this financial burden holding them back.”

“I’m incredibly grateful to Governor Meyer and the state of Delaware for this investment in medical debt relief that’s bringing much-needed good news to over 18,000 Delawareans just in time for the holidays,” Undue Medical Debt CEO and president Allison Sesso said. “Medical debt is both a financial and emotional burden; no one chooses to get sick, be in an accident, or have a chronic condition. This partnership will provide welcome relief to families facing financial hardship simply from seeking necessary care, and we look forward to continuing our work with Delaware leaders to help even more residents in the new year.”

HOW MEDICAL DEBT ELIMINATION WORKS:

• Undue Medical Debt purchases bundled medical debt portfolios from hospitals and commercial debt buyers for pennies on the dollar and then abolishes that debt entirely.
• There is no application process.
• Eligibility is based on financial need. Delaware residents qualify if their household income is at or below 400 percent of the federal poverty level — roughly $100,000 for a family of three — or if their medical debt equals five percent or more of their annual household income.
• Qualifying residents will receive a letter directly from Undue Medical Debt confirming that their medical debt has been eliminated, with letters for the first round of relief set to hit mailboxes between December 19 and December 23, 2025. 23, 2025. No action is required from recipients. The letter functions as a receipt of debt relief. Learn more: https://unduemedicaldebt.org/faq/.

Links to the sample letter, demographics report, and FAQ can be found HERE.

ABOUT UNDUE MEDICAL DEBT:
Undue Medical Debt is a national 501(c)(3) nonprofit founded in 2014 by former debt collectors. To date, Undue has acquired — and abolished — over $23.3 billion of burdensome medical debt, helping over 15 million families and addressing a major social determinant of health. Undue purchases debts for a fraction of their face value in bundled portfolios and partners with individuals, faith-based organizations, local and state governments, foundations, and corporations to empower donors by converting every dollar contributed into $100 of medical debt relief on average.

Undue partners with hospitals, health systems, and physician groups to acquire medical debt for abolishment. Undue rose to national prominence on an episode of HBO’s “Last Week Tonight” with John Oliver, in which Undue facilitated the abolishment of $15M in medical debt. To learn more, visit UndueMedicalDebt.org.

For any questions, please email govcomm@delaware.gov.

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