Key Takeaways
The Trump administration plans to stop states from passing laws that keep medical debt off credit reports
The new rule would give the federal government full control over credit reporting
States like New York and Delaware could lose protections that keep medical debt off people's credit reports
THURSDAY, Oct. 30, 2025 (HealthDay News) — The Trump administration is taking steps to roll back state laws that protect consumers from having medical debt appear on their credit reports.
The move could impact millions of Americans already struggling with unpaid medical bills.
The Consumer Financial Protection Bureau (CFPB) has drafted a rule that would give the federal government sole authority over how debts are reported to major credit bureaus such as Equifax, Experian and TransUnion, The Associated Press reported.
If finalized, the rule would override more than a dozen state laws, including those in New York and Delaware, that ban the reporting of medical debt on consumer credit reports.
The proposed rule would also undo Biden-era policies that gave states flexibility to create their own protections. The CFPB said Congress intended to establish “national standards” under the Fair Credit Reporting Act (FCRA) and that state laws conflict with that goal.
Medical debt is one of the most commonly disputed items on credit reports. Because insurance claims often take time to process, patients can be left with unexpected bills that can harm their credit scores before coverage issues are fixed.
The three major credit bureaus previously agreed to stop reporting unpaid medical debts under $500, a change that removed about 70% of medical debts from credit files.
But some states banned the practice entirely.
Americans owe roughly $220 billion in medical debt, according to the Kaiser Family Foundation (KFF). In Republican-controlled states such as Mississippi, Georgia, South Dakota and West Virginia, about 1 in 6 adults carries medical debt.
Unpaid medical bills can make it harder for people to qualify for loans, credit cards or mortgages.
A CFPB spokesperson did not immediately respond to a Associated Press request for comment on the proposed rule.
More information
The Consumer Financial Protection Bureau has more on the medical debt burden in the United States.
SOURCE: The Associated Press, Oct. 28, 2025
What This Means For You
If you live in a state with laws protecting you from medical debt reporting, those protections could soon disappear.
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