Orange County added $2 million to its medical debt relief initiative in August 2026, bringing the county's total investment since 2024 to $6.5 million. As of August 2026, the program had already eliminated more than $637 million in medical debt for over 427,000 residents through a partnership with the nonprofit Undue Medical Debt, funded by federal pandemic relief dollars. What makes this program different is that residents don't have to apply or take action—eligible debt is identified through partnerships with hospitals, healthcare providers, and debt collectors, then purchased and eliminated directly.
Table of Contents
- How Your Debt Gets Canceled
- Four Rounds of Elimination Since 2024
- How $2 Million Turns Into $200 Million in Canceled Debt
- Orange County's Status as Florida's Only Municipal Partner
- When the Program Will End
How Your Debt Gets Canceled
The nonprofit identifies eligible debt through partnerships with hospitals, healthcare providers, and debt collectors, then purchases and eliminates it without requiring residents to apply or take action. Once your unpaid medical bills are found in these systems, they are purchased and erased. You don't need to apply, get approval, or submit documents. If you have medical debt in Orange County and it's in the systems these partners scan, the program eliminates it directly.
Four Rounds of Elimination Since 2024
The debt cancellation has occurred in multiple phases since 2024, with $472.5 million announced in May 2025, $42.9 million in October 2025, $43 million in April 2026, and now the August 2026 commitment as the fourth round. The program has moved from pilot phase to sustained operation over two years. The August 2026 $2 million allocation is projected to eliminate approximately $200 million in additional medical debt for as many as 100,000 more Orange County residents..
How $2 Million Turns Into $200 Million in Canceled Debt
Undue Medical Debt purchases medical debt portfolios at steep discounts, typically paying about $1 for every $100 of face-value debt. When Orange County provides $2 million, the nonprofit can purchase $200 million in unpaid bills because of these discount rates. The county's $4.5 million in federal investment has been leveraged to eliminate the $637 million debt because hospitals and creditors sell unpaid accounts far below their original value. A debt investor recovers something instead of nothing, and residents' obligations disappear entirely.
Orange County's Status as Florida's Only Municipal Partner
Orange County is the first and only municipality in Florida that has entered into a partnership with Undue Medical Debt. This partnership puts Orange County ahead of other Florida counties and cities in experimenting with large-scale medical debt relief.
When the Program Will End
All funding for the program comes from American Rescue Plan Act (ARPA) federal pandemic relief dollars allocated to Orange County, representing use of one-time federal emergency funds. This is not a permanent program. Once the county exhausts its ARPA allocation, the relief initiative will end.
As of August 2026, Orange County has committed $6.5 million of its available ARPA funding. No announcement states how much ARPA money remains or when the county's deadline for spending it expires.