Pallone Pushes Federal Bill to Strengthen New Jersey’s New Medical Debt Forgiveness Plan
LONG BRANCH, NJ – Congressman Frank Pallone, Jr. (D-N.J.) is highlighting legislation in his House Energy and Commerce Committee – H.R. 9129, the Patient Debt Relief Act – as a key federal initiative that will build on Governor Murphy’s recent announcement of a $100 million medical debt forgiveness program in New Jersey. Pallone is the Ranking Member of the House Energy and Commerce Committee.
New Jersey’s program aims to eliminate medical debt for 50,000 residents. This state-level initiative directly aligns with the goals of the Patient Debt Relief Act, which Pallone is championing in Congress to expand medical debt forgiveness nationwide. The federal legislation, introduced in July, proposes the creation of a federal grant program that empowers nonprofits to purchase and forgive medical debt on a larger scale. The bill has the potential to deliver up to $10 billion in relief across the country.
“The Patient Debt Relief Act would expand New Jersey’s effort even further to the federal level and substantially extend this kind of relief to millions more Americans,” said Pallone. “Medical debt can devastate families, forcing them to choose between essential needs and paying off bills, and it often leads to long-term financial instability. I’m committed to advancing this bill and making sure that state and federal initiatives work hand in hand to ease the burden on Americans grappling with health care debt.”
Pallone’s advocacy for federal legislation is further supported by recent initiatives from the Biden-Harris Administration. In June, Vice President Kamala Harris announced a proposal to remove medical debt from credit reports, a move aimed at improving the financial health of millions of Americans. This effort is part of a broader plan to address healthcare debt, including the elimination of $7 billion in medical debt for nearly 3 million Americans by 2026—an achievement made possible by the American Rescue Plan, which Governor Murphy also used to provide medical debt relief at the state level.