“The federal government has a responsibility to set the standard for how medical debt is
treated when making lending decisions,” Budget Director Shalanda Young said in the directive. “To that end, whenever possible and consistent with the law, the federal government will make changes within its own programs, and as a result, influence how the broader market treats medical debt in lending decisions.”
The directive calls on federal agencies to submit plans on how they will exclude medical debt from consideration. That includes identifying any statutory, regulatory or administrative changes that would be required to change criteria.
“Freeing American families from this burden will increase their access to credit and positively impact their financial, physical, and mental health and well-being,” Ms. Young said in the directive.
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