The city of Saint Paul is using funds from the American Rescue Plan to cancel roughly $110 million in medical debt for residents.

St. Paul Mayor Melvin Carter says the goal is to help 43,000 St. Paul residents who are struggling to pay for expenses to become medical debt-free within the year. These people are either considered to be low-income or have very high bills.

By using federal American Rescue Plan funds, the city paired with the nonprofit, Undue Medical Debt, and M Health Fairview to wipe out $40 million in medical obligations. St. Paul Mayor Melvin Carter says the plan is aimed at giving support to debt-strapped residents.

"It's a win for everyone," St. Paul Mayor Melvin Cater said. "And it's just the beginning." 32,000 people will receive a surprise notice in the mail from St. Paul and Undue Medica

When St. Paul Mayor Melvin Carter announced last year he would dedicate $1.1 million in federal COVID relief aid to knock out up to $110 million in medical debt citywide, some scoffed. Why spend American Rescue Plan Act dollars helping to eliminate hard-to-collect funds that hospitals could just write off themselves?