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US Judge Reverses Biden-Era Medical Debt Rule.

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A Texas federal judge sided with the Trump administration, scrapping a Biden-era rule that would have removed medical debts from credit reports. US District Judge Sean Jordan agreed with the current leadership of the Consumer Financial Protection Bureau that the rule exceeded its legal authorities. In his ruling, Jordan cited the Fair Credit Reporting Act, arguing that it does not permit the CFPB to remove medical debt from credit reports. Former Vice President Kamala Harris was an advocate for erasing medical debt, with the regulation becoming part of her messaging during her 2024 presidential campaign. "No one should be denied economic opportunity because they got sick or experienced a medical emergency," Harris said. However, the rule’s reversal has been backed by Consumer Data Industry Association head Dan Smith, who said the decision protects “the integrity of the system.” The reversal of the rule comes shortly after Trump signed a spending and tax bill, dubbed the “big beautiful bill,” which included sweeping cuts to Medicaid.

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