Medical Debt Crisis: How Black Americans Are Affected by Recent Rule Changes

A federal judge appointed by Trump has impeded a significant regulation intended to eliminate medical debt from the credit histories of approximately 15 million Americans, negatively impacting families already coping with exorbitant healthcare costs, notably among Black Americans, who disproportionately shoulder this financial burden. Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas nullified the Consumer Financial Protection Bureau’s (CFPB) rule, established under the Biden administration, siding with credit reporting organizations that argued the CFPB overstepped its boundaries within the Fair Credit Reporting Act. This ruling halts a policy not yet implemented, which was meant to keep medical debt—often stemming from billing errors and emergencies—from adversely affecting individuals’ credit scores. Julie Margetta Morgan, former CFPB official, highlighted that such debt fails to reflect one’s capacity to fulfill mortgage or other obligations. As the court’s decision obstructs meaningful reform, the heavy toll of medical debt, affecting nearly 20 million adults, continues to disproportionately burden people of color and low-income households across the nation.