Summary
The Trump administration plans to stop states from removing medical debt from credit reports, affecting millions of Americans. This decision could override existing state protections and impact people with medical debt trying to secure loans or housing.
Key Facts
- The Trump administration will issue guidance to stop states from removing medical debt from credit reports.
- Fifteen states have laws to limit medical debt reporting, including California and Maine.
- The Fair Credit Reporting Act (FCRA) is a federal law that preempts state laws on credit reporting.
- About 15 million people have medical debt on their credit reports.
- Medical debt in the United States amounts to an estimated $220 million.
- The Supreme Court ruled in 2024 that courts should interpret unclear laws instead of relying on regulators.
- A federal judge in Texas blocked a previous rule that would have removed medical debt from credit reports.
