News Release
For Immediate Release
Oct. 29, 2026
FROM THE OFFICE OF: Councilmember Dionne Foster
CONTACT: Brad Harwood, Communications Director
206-798-7577 or brad.harwood@seattle.gov
Councilmember Foster moves to wipe out millions in medical debt for Seattle residents
One-time budget investment would turn $350,000 into millions in debt relief, putting affordability and financial freedom within reach for Seattle families
SEATTLE – Today Councilmember Dionne Foster (Position 9) announced a budget proposal to invest $350,000 in one-time funding to the Human Services Department to provide direct medical debt relief for Seattleites by partnering with the national nonprofit Undue Medical Debt.This initial investment would immediately eliminate more than $5 million in existing medical debt for Seattle residents, with the potential to leverage future partnerships and remove millions more.
"No one in our community should lose sleep, savings, or financial security over a hospital bill. Medical debt can follow families for years, long after the medical emergency is over. That's why I'm excited to partner with Undue Medical Debt to turn a modest City investment into millions in debt relief, wiping out existing medical debt for pennies on the dollar,” said Councilmember Foster. “This proposal provides relief for Seattle families — relief from both the burden of the cost of the debt, and the emotional strain that so often accompanies financial strain. We can't change what brought someone to the hospital, but we can change what follows them home.”
Using an established relief model, Undue Medical Debt purchases qualifying debt portfolios from healthcare providers at a fraction of their face value and permanently cancels the balance. Residents do not need to apply, navigate complicated paperwork, or pay taxes on the relief they receive. Instead, individuals simply receive notice that their debt has been cancelled. Undue Medical Debt qualifies debt relief based on financial need: those at or below 400% of the federal poverty level, or medical debt that exceeds 5% of their income.
“Medical debt doesn’t just sit on a balance sheet — it follows people home, keeps them up at night and forces impossible choices between paying a medical bill and a necessity like rent. I’m grateful to the City of Seattle for proposing this investment in its residents. Erasing these debts of necessity can bring both financial and emotional relief; it gives families room to: breathe, return to the doctor and put their money back into their households and local businesses. When neighbors aren’t weighed down by bills they never chose to take on, the whole community is healthier and stronger.” -Courtney Werpy Story, Vice President of Government Initiatives, Undue Medical Debt
Background
Medical debt remains a primary driver of household instability, draining savings and forcing residents to choose between healthcare and basic needs. A 2025 statewide survey revealed that 20% of Washington respondents carry outstanding medical bills, while 35% have experienced direct financial hardship due to medical expenses. The urgency for local relief is heightened by incoming federal changes under H.R. 1, which introduce stricter Medicaid eligibility rules and administrative hurdles beginning in 2027. In King County alone, an estimated 215,000 residents enrolled in Medicaid could face coverage disruptions, shifting further financial burden onto working families.
Across government partners, Undue Medical Debt has eliminated more than $12.7 billion in medical debt for nearly seven million patients. For example, Memphis, Tennessee, invested $159,000 to eliminate $17 million in debt for their residents; and San Antonio, Texas, invested $115,000 to eliminate $57 million for its residents.
Potential partner Undue Medical Debt (formerly RIP Medical Debt) is a 501(c)(3) nonprofit that acquires and abolishes medical debt for individuals and families across the United States.
What’s next
The City Council is currently in the middle of the 2027-28 budget process. Councilmember Foster’s proposal will be discussed during a series of briefings that began this week. Members of the public are encouraged to voice their perspectives, including at the next public hearing on Nov. 5.
A full list of public comment opportunities, including an overview of the budget process, is available on the City Council webpage.
Additional quotes
“Medical debt is a policy failure of the American health care system. It should not exist — full stop. This is a proven strategy that can leverage a relatively small investment from our city to deliver an order of magnitude more debt relief for working families. We have been working together behind the scenes to make a program like this a reality, and I am beyond thankful for Councilmember Foster’s leadership in bringing this proposal forward.” -Councilmember Dan Strauss (District 6), Budget Chair
"This proposal recognizes medical debt relief as a necessary tool to help families stay financially stable. The emotional toll of an illness is already overwhelming, no one should have to navigate this burden alone. I'm proud to support this effort to provide relief and help families stay financially and emotionally secure."
-Council President Joy Hollingsworth (District 3)
“Because our health safety net is riddled with holes, people with low incomes, people with disabilities, and people of color have long been most deeply impacted by medical debt. This problem has only deepened as the affordability crisis has increased strain on household budgets. We are proud to stand with CM Foster as she takes this important and tangible step toward medical debt relief for people in Seattle.” -Marcy Bowers, Executive Director, Statewide Poverty Action Network
"Medical debt causes tremendous mental anguish and financial stress for Seattle families. One in three recently surveyed Washingtonians reported facing a significant financial burden related to getting needed health care. And we know this will only get worse — federal attacks on every corner of our health care system mean higher uninsurance rates and skyrocketing costs. No one should face financial ruin for getting needed care. This investment from Councilmember Foster's office represents important and tangible relief for Seattle families and we're proud to support it." -Sam Hatzenbeler, Legislative Director, Economic Opportunity Institute
"Seattle families are struggling under the weight of rising health prices and federal attacks that undermine care. Unless we act, our uninsurance rate will nearly double by 2028. Councilmember Foster's plan will offer immediate relief from crushing medical debt while we build the broader systemic reforms that can prevent patients from falling into debt in the first place." -Emily Brice, Co‑Executive Director of Advocacy, Northwest Health Law Advocates
About the City Council
The Seattle City Council is the elected legislative branch of the city’s government. It’s comprised of nine councilmembers serving four-year terms and representing more than 800,000 constituents — seven selected by districts and two through citywide positions. For the latest news and information, please visit seattle.gov/council.
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