CHICAGO — Today, Mayor Brandon Johnson signed an executive order which prohibits the sale of City-administered medical debt owed by individuals to private entities and sets clear standards for transparent and stable debt collection practices by both the City and private third parties, protecting Chicagoans from the threat of harassment, coercion, and intimidation. Executive Order 2025-10 ensures that debt sale measures included in the FY26 management ordinance are carried out in a manner that serves the public-interest and does not infringe upon the dignity and security of Chicago's residents.

"How we choose to manage our fiscal obligations reflects who we are as a city," said Mayor Brandon Johnson. "I've been clear from the beginning of this debate that I will not allow the sale of debt to lead to the use of predatory and immoral tactics against the people of Chicago. This Order affirms that the City will manage this debt in a manner that protects dignity of our residents, advances equity, and preserves public trust in our city government."

The City of Chicago has an obligation to manage its finances in a responsible and equitable manner that protects residents from economic exploitation. Accordingly, to prevent the extension of practices which violate public trust and unnecessarily disrupt the lives of Chicagoans, as ordered by Mayor Johnson, all City-administered debt recovery efforts must adhere to the following guidelines:

• Comply with all federal, state, and local consumer-protection laws;  
• Be conducted without harassment, misrepresentation, coercion, or intimidation;  
• Provide clear notice, accessible dispute adjudication processes, and transparent accounting;  
• Prioritize long-term resident stability over short-term extraction.  

The order states that any private third-party engaged in municipal debt collection must also conform to these standards.

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Mayor Johnson's order prohibits the City from selling the medical debt of individuals to a private third-party, including debt incurred from emergency medical response services or ambulance transport.

Medical debt arises under urgent, unforeseen circumstances that are beyond individual control. By preventing the sale of medical debt, Mayor Johnson's order protect Chicagoans from facing unnecessary hardships due to medical debt obligations, which are already felt disproportionately by Black and brown communities, low-income households, and by those with chronic conditions.

"In the wealthiest country in the history of the world, no family should be forced to decide between medicine and food, between seeing a doctor and seeing their loved ones for the holidays," said Mayor Brandon Johnson. "While we've worked to implement responsible and targeted debt collection measures that ensure we can maintain fiscal stability, I will not allow us to balance our budget by chasing down and harassing Chicagoans who committed the crime of ordering an ambulance for themselves or someone they love."

The standards laid out in the executive order are designed to ensure any debt collection measures instituted by the City do not destabilize the lives of families, compound existing cycles of poverty, and extract wealth from Chicago's communities. The measures aim to protect Chicagoans from harassment and coercive practices previously employed by private debt buyers, including:

• Mass lawsuits filed without sufficient documentation, resulting in default judgments against unrepresented consumers;  
• Attempts to collect inaccurate, inflated, or time-barred debts;  
• Repeated misleading communications, including threats of legal action that cannot lawfully be taken;  
• Improper wage garnishment or bank account restraints.  

The Office of Budget and Management, the Chief Financial Officer, the Comptroller, and the Department of Law will provide guidance to relevant departments regarding implementation of today's order, ensuring consistent implementation across City operations.

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The signed Executive Order will be posted on the City Clerk's website.

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