In a historic move, the Biden-Harris administration has finalized a groundbreaking rule that will eliminate $49 billion in medical debt from Americans’ credit reports. Vice President Kamala Harris announced the rule, implemented by the Consumer Financial Protection Bureau (CFPB), which has already raised credit scores by an average of 20 points for over 15 million people.
Medical debt remains the largest source of debt in collections across the nation, affecting 100 million Americans. Harris highlighted the transformative impact of the new rule, stating, “No one should be denied economic opportunity,” like buying a home or starting a business, due to unpaid medical bills.
Local governments, utilizing American Rescue Plan funds, have also erased over $1 billion in medical debt for 700,000 residents, with more relief initiatives on the horizon. The administration says the effort underscores its broader commitment to lowering costs and advancing equity for families nationwide.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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