A group of Democratic lawmakers in both the House of Representatives and the Senate have introduced the Medical Debt Relief Act of 2025 (S. 2519 and H.R. 4827), which would ban medical debt from appearing on consumer credit reports and prohibit creditors from using it when making lending decisions.
The legislation, led by Rep. Nikema Williams [D-Ga.], Sen. Jeff Merkley [D-Ore.], and Rep. Lou Correa [D-Calif.], is a direct response to efforts by the Trump administration to roll back a federal Consumer Financial Protection Bureau rule that removed medical debt from credit reporting for millions of Americans.
Why it matters: A number of states have enacted laws aimed at keeping medical debts from appearing on consumers’ credit reports. This is one of the first attempts at national legislation.
What the bill does: The Medical Debt Relief Act of 2025 would:
- Amend the Fair Credit Reporting Act to exclude all medical debt from consumer credit reports—even if placed for collection, charged off, or otherwise deemed delinquent.
- Prohibit creditors from accessing or using medical debt information when making credit decisions.
- Direct the CFPB to finalize these regulations within one year of enactment.
What they said: “Every patient should be able to get the care they need without fear of financial ruin,” said Sen. Merkley. “America’s medical debt crisis is harming families nationwide, but instead of working to help working families, the Trump Administration is repealing a federal safeguard that removed medical debt from credit reports for 15 million people. The medical debt reporting system is badly broken, and we must do all we can to relieve patients of this tremendous burden. Our Medical Debt Relief Act is a common-sense step forward that will help families in Oregon and communities across America.”
Said Rep. Williams: “Trump’s reversal of the CFPB rule exempting medical debts from credit reports demonstrates a lack of understanding and care for America’s working families. Medical debt is one of the leading causes of financial strain, and our current system continues that hardship even after the bill is paid, allowing settled medical debts to harm their credit reports. Often, these debts are beyond their control — and it’s far past time to right this wrong.”
Support and opposition: The bill is co-sponsored by more than a dozen Democratic lawmakers and backed by consumer advocacy organizations, including the National Consumer Law Center, Center for Responsible Lending, and the Consumer Federation of America.
