In a major announcement that could bring relief to millions of Americans, Vice President Kamala Harris unveiled a new proposal to remove medical debt from credit reports. The move by the Consumer Financial Protection Bureau aims to eliminate medical debt from the credit reports of over 15 million people, potentially raising their credit score by an average of 20 points.

The Biden-Harris administration is also urging state and local governments to take further action, including using public funds to buy and eliminate medical debt. Some states, like Arizona and Illinois, are already leveraging funds from the American Rescue Plan to wipe out billions in medical debt, setting an example for others.

The initiative is particularly significant for Black, Hispanic, low-income, and veteran communities, who are disproportionately affected by medical debt.

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