On October 29, 2025, Governor Phil Murphy announced the fifth round of New Jersey’s medical debt relief initiative in partnership with the nonprofit Undue Medical Debt. This round will eliminate $59 million in medical debt for more than 48,000 New Jersey residents. In total for all rounds, $1.3 billion in medical debt was forgiven for 780,000 people. Undue Medical Debt purchased the debt by leveraging approximately $500,000 in American Rescue Plan funds from the State’s investment in medical debt abolishment. Those that qualify for medical debt relief must have annual income which is below 400% of the federal poverty level or must have medical debts that equal 5% or more of their annual income. Recipients are notified automatically through an Undue Medical Debt branded letter, with no application required.

*This is intended to provide general information, not legal advice. Please contact the authors if you need specific advice.