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Gov. Hobbs Announces Erasure of $429M in Medical Debt for Thousands of Arizonans

ARIZONA, JUL 16 – The partnership erased $429 million in medical debt for over 352,000 Arizonans earning up to 400% of the Federal Poverty Level or owing 5% of annual income, officials said.

  • Governor Katie Hobbs announced the erasure of $429 million in medical debt for over 352,000 Arizonans as part of a partnership with Undue Medical Debt.
  • The initiative aims to eventually erase $2 billion in medical debt for up to one million Arizonans by utilizing American Rescue Plan Act funds.
  • Beneficiaries will receive letters notifying them of their debt cancellation, which targets individuals earning 400% of the Federal Poverty Level or below.
  • Hobbs stated that medical debt prevents families from living productive lives and emphasized the state's commitment to removing these financial burdens.
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Tucson broke the news in Tucson, United States on Wednesday, July 16, 2025.
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