Flint council approves $50,000 ARPA allocation to erase medical debt with Undue Medical

The Flint City Council voted 8-0 on Jan. 8 to reallocate $50,000 in American Rescue Plan Act funding to a partnership with the nonprofit Undue Medical to purchase and eliminate medical debt for eligible Flint residents.

Supporters said the city allocation will be matched by state funds and leveraged by Undue Medical to cancel a far larger portfolio of debt. Monica Villarreal, who presented the program to the council on behalf of Undue Medical and coalition partners, said the local allocation would “leverage state money that’s already available” and that the organization estimates $50,000 could help unlock roughly $32 million in medical debt elimination across qualified accounts tied to Flint residents.

The resolution’s backers, including Councilwoman Priestley, said the proposal targeted a clear, frequently documented barrier to economic stability. Councilwoman Priestley said she had reviewed the materials and “can’t imagine any program leveraging more funds and doing more.” Councilwoman Michelle, who spoke in favor during council debate, said the program would “allow those people to have access to better housing, better jobs” and argued that eliminating debt would encourage residents to seek health care earlier, rather than waiting until conditions worsen.

Undue Medical’s model, as described at the meeting, focuses first on hospital-held portfolios because hospitals typically hold the largest blocks of purchasable medical debt. Villarreal told the council Undue Medical has worked with large counties and hospital systems elsewhere and that the nonprofit will invoice the city for reimbursable work done under a contract. Undue also said it expects to use philanthropic dollars if needed to close any gaps for nonresidents appearing in purchased portfolios.

Council discussion touched on a federal rule issued earlier the same day limiting the appearance of medical debt on credit reports. Council members and Undue Medical representatives said that federal changes do not eliminate the risk of garnishment or collections and that debt purchase-and-elimination remains useful to prevent wage garnishments and other collection actions that affect household finances.

The formal motion approved by council directed staff to execute an agreement allocating $50,000 in ARPA funds to the program and to pursue any available state allocations that would supplement the city’s contribution. A roll-call vote recorded “yes” from Councilmembers Lewis, Priestley, Winfrey Carter, Burns, Mishaff, Pfeiffer, Jarrett and O’Alamein.

The vote followed months of presentations and public comment from clergy and neighborhood groups urging the council to free debt as a pathway to improved credit, housing access and economic participation.

What’s next: The council-directed contract will allow Undue Medical to begin outreach to hospitals and providers to identify portfolios that can be purchased and cancelled on behalf of Flint residents. The city clerk’s office confirmed a contract-and-invoice process will be used for reimbursements to Undue Medical under the approved agreement.