St. Paul Mayor Melvin Carter announced Tuesday that $40 million worth of medical debt has been wiped away for 32,000 people.

Carter says the goal is to help 43,000 St. Paul residents who are struggling to pay for expenses to become medical debt-free within the year. These people are either considered to be low-income or have very high bills.

32,000 residents could be getting letters saying their medical debt is paid off — the city is mailing out the letters on Tuesday. These letters will be for patients who received care at Fairview Medical Center.

There will be another round of letters for patients at other health facilities.

As reported by 5 EYEWITNESS NEWS last year, Carter announced the Medical Debt Fairness Plan, which includes using $1.1 million from federal COVID relief funds. The City Council then passed the measure by a vote of 4-3. They partnered with a national non-profit called Undue Medical Debt.

To be eligible, residents must have an income four times below the federal poverty line or have the debt be over 5% of their income.

“This is about more than just eliminating debt,” Carter said Tuesday. “This is about eliminating one of the greatest barriers to health care access, giving people the chance to take control of their own health.”

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Tuesday’s debt cancellation moves the city to about the halfway mark to the city’s goal of erasing $110 million for St. Paul residents.

Meanwhile, on the statewide level, the Minnesota Debt Forgiveness Act has been in effect since June. The law makes it so providers can’t refuse necessary care because of an unpaid debt. It establishes automatic income-based levels for debt repayment.