A new proposed policy from the Trump administration could jeopardize recent Maryland law that prohibits collection companies from reporting medical debt to credit agencies.

The state law, which went into effect on Oct. 1, makes it illegal for companies to report overdue bills from health facilities, medical practitioners or ambulance services.

The law was passed to help protect Marylanders from surprise medical bills that could ruin their credit.

However, a new Trump administration proposal would overturn a previous rule that allows states to set their own ban on credit reporting, effectively overriding the state law.

The Consumer Protection Finance Bureau issued the proposed rule at the end of October. It clarifies the Fair Credit Reporting Act (FCRA) by giving the power to the federal government and rescinding the Biden-era rule that delegated governance of the marketplace to the states.

“The 2022 interpretive rule contradicted the plain text of FCRA, ignored the legislative history of the preemption clause, and reflected a misguided policy choice that would undermine the credit reporting system and credit markets,” the 2025 rule posting states.

Fourteen states and Maryland have laws banning medical debt reporting.

Marceline White, the executive director of the Economic Action Maryland Fund, said if the rule changed it would hurt Marylanders.

“I think it just is sort of the cruelest kind of guidance that can come, because medical debt is not something anyone chooses, and you certainly shouldn't have your credit ruined,” White said.

The proposed rule still has a way to go before it goes into effect.

Interested parties will have an opportunity to make public comments on the rule.

Additionally, there is a court case challenging a similar anti-reporting law in Colorado, which may have implications for the rule and the Maryland law.