Makes an appropriation to the Department of Health and Human Services for a medical debt relief grant program. (BDR S-74)

SB 134 appropriates $5 million from the State General Fund to the Department of Health and Human Services to create a medical debt relief program. The program funds an eligible nonprofit organization to distribute grants to local governments, enabling them to purchase medical debt from healthcare providers or secondary markets and forgive it for patients in financial hardship. Key provisions require the nonprofit to ensure debt relief avoids adverse tax consequences for patients, prioritize geographic distribution, and submit detailed spending reports by 2027. Any unused funds must revert to the State General Fund by September 2027. The bill directly affects patients burdened by medical debt and local governments managing debt relief efforts.