Medical debt relief program

Part P of title III of the Public Health Service Act (42 U.S.C. 280g et seq.) is amended by adding at the end the following new section: 399V–8. Medical debt relief grant program (a) In general Not later than 1 year after the date of the enactment of this section, the Secretary shall establish a program under which the Secretary may make grants to not more than 1 eligible nonprofit organization to acquire and discharge the medical debt (as defined by the Secretary) of eligible individuals in accordance with this section. (b) Application An eligible nonprofit seeking a grant under this section shall submit an application at such time, in such form, and containing such information as the Secretary may require. (c) Use of funds Amounts provided under a grant under this section shall be used to— (1) identify eligible individuals; and (2) acquire and discharge the medical debt of such individuals. (d) Notice and reporting requirements (1) Notice requirement Not later than 60 days after an eligible nonprofit organization that has received a grant under this section acquires and discharges the medical debt of an eligible individual under subsection (c), such eligible nonprofit organization shall notify such individual of such acquisition and discharge. (2) Reporting requirement Not less frequently than once per calendar quarter, an eligible nonprofit organization that has received a grant under this section shall submit to the Secretary a report containing the following information with respect to the preceding calendar quarter: (A) The actions taken by the eligible nonprofit organization to identify eligible individuals. (B) The number of eligible individuals whose medical debt was acquired and discharged by the eligible nonprofit organization, and the amount of medical debt so acquired and discharged. (C) Such other information as the Secretary may require. (e) Definitions In this section: (1) Eligible individual The term eligible individual means an individual with medical debt if, for the most recent taxable year— (A) such medical debt is equivalent to 5 percent or more of the modified adjusted gross income of such individual; or (B) the household income of such individual is not in excess of 400 percent of the poverty line for the size of the family involved. (2) Eligible nonprofit organization The term eligible nonprofit organization means a nonprofit organization with the mission of relieving individuals of their medical debt, as determined by the Secretary. (3) IRC terms The terms household income, modified adjusted gross income, and poverty line have the meaning given each such term in section 36B of the Internal Revenue Code of 1986 (26 U.S.C. 36B). (f) Funding There is authorized to be appropriated for purposes of carrying out this section $100,000,000 for fiscal year 2027, to remain available until expended..