The city of Saint Paul is using funds from the American Rescue Plan to cancel roughly $110 million in medical debt for residents.

St. Paul Mayor Melvin 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.

St. Paul Mayor Melvin Carter announced on Tuesday that thousands of city residents are getting nearly $40 million of medical debt wiped out.

More than 32,000 St. Paul residents will soon receive letters telling them their unpaid doctor's bills are no longer due. Why it matters: It's not a scam. It's the first round of a city-backed effort to eliminate $100 million in medical debt for unsuspecting community members — no application or action required.

St. Paul Mayor Melvin Carter holds up a box of letters set to be sent to residents that will have their medical debts repaid during a news conference at the Capitol on Tuesday. St. Paul officials are sending letters to 32,