Trump's policies could have a major impact on your credit score. Here's how
Trump and his allies are set on enacting his 'One Big Beautiful Bill,' which would add trillions to the country's already sizable deficit and drive up interest rates, producing large-scale macroeconomic repercussions.
Financial markets have already warned of the rising debt, with Moody's cutting its pristine 'Aaa' U.S. credit rating, which could take even further hits if the deficit continues to rise.
To help pay for the bill, Republicans are looking to make cuts to Medicaid and food assistance programs, without which, more Americans are likely to go into medical debt.
Some 15 million Americans with medical debt may suffer even greater consequences of Trump's policies after his administration paused a new Consumer Financial Protection Bureau rule that would ban the inclusion of medical debt on credit reports. As of now, medical debt can be included in credit scores and a significant amount of medical bills can drag down a credit score.
A lower credit score means a person appears to be a bigger risk to a lender, such as a bank. That could lead to higher interest rates on loans, such as for a car or a home.
A Biden-era rule would have removed $49 million in medical debt from credit score records, but new leadership at CFPB appointed by Trump is attempting to reverse its course, NPR reported.
In addition to the complete switch in its stance, the CFPB joined forces with plaintiffs who filed a lawsuit trying to stop the Biden ban.
The rule has since been stuck in limbo, with Judge Sean Jordan from Texas' Eastern District federal court twice ordering a stay, delaying the rule's new start date until the end of July. The outcome of the lawsuit will have tremendous financial implications for millions of Americans whose medical debt has negatively impacted their credit scores.
Meanwhile, consumer advocates have been speaking out on behalf of the medical debt rule, worried abandoning it would take away necessary consumer protections.
"I'm disappointed for the 15 million Americans who have medical bills on their credit reports and have to suffer the consequences of poor credit scores because of it," Patricia Kelmar, senior director of health care campaigns at the U.S. PIRG Education Fund, told USA Today.
In the lawsuit filed in April, CFPB along with plaintiffs, the Consumer Data Industry Association and the Cornerstone Credit Union League, asked the judge to abandon the medical debt rule 'because it exceeds the bureau's statutory authority.'
"We believe that Congress is the only one who can act on this and determine whether or not it can be on the credit report," Dan Smith, CEO and president of the Consumer Data Industry Association, told NPR.
"Our intention here is to protect the credit reporting system. To ensure that it is as complete and accurate as possible," he said.
In the lawsuit, the groups also note that the three largest credit bureaus - Experian, TransUnion and Equifax – no longer list paid medical debts, unpaid medical debts less than a year old and medical debts less than $500.
Americans' credit scores may also see some changes thanks to a proposal from Trump that would cap credit card interest rates at 10 percent – a significant reduction from the current average interest rate of about 21 percent. Lower rates mean people would be able to pay back credit card bills quicker, and improve their credit scores by having less debt.
The proposal was touted as a solution to the debt many Americans owe due to high credit card interest rates, Newsweek reported.
Americans held $1.21 trillion in credit card debt as of December 2024 – an increase of $45 billion from September 2024, per New York Fed data. Data also shows that 7.18 percent of U.S. credit card debt is in serious delinquency, likely causing many credit scores to take a serious downward spiral.
Following Trump's campaign promise, Reps Alexandria Ocasio-Cortez (D-Ny) and Anna Paulina Luna (R-Fla) introduced legislation to cap credit card interest rates at a maximum of 10 percent.
The measure would take the financial burden away from consumers, especially those with high-interest debt.
The cap would last until January 1, 2031, according to the bill.
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Yahoo
20 minutes ago
- Yahoo
The House is poised to OK Trump's $9 billion cut to public broadcasting and foreign aid
WASHINGTON (AP) — The House is expected late Thursday to approve President Donald Trump's request to claw back about $9 billion for public broadcasting and foreign aid as Republicans target institutions and programs they view as bloated or out of step with their agenda. The White House had described the package as a test case and said that if Congress went along, more would come. The House's approval would mark the first time in decades that a president has successfully submitted such a rescissions request to Congress, and even then the results were more mixed. Unlike other presidents, Trump is getting nearly all the cuts he requested. Opponents voiced concerns not only about the programs targeted, but about Congress ceding its spending powers to the executive branch as investments approved on a bipartisan basis are being subsequently canceled on party-line votes. No Democrats supported the measure when it passed the Senate, 51-48, in the early morning hours Thursday. Two Republicans also voted no. 'We need to get back to fiscal sanity and this is an important step," House Speaker Mike Johnson, R-La., told reporters. The package cancels about $1.1 billion for the Corporation for Public Broadcasting and nearly $8 billion for a variety of foreign aid programs, many designed to help countries where drought, disease and political unrest endure. The effort to claw back a sliver of federal spending comes just weeks after Republicans also muscled through Trump's tax and spending cut bill without any Democratic support. The Congressional Budget Office has projected that measure will increase the U.S. debt by about $3.3 trillion over the coming decade. A heavy blow to the Corporation for Public Broadcasting The cancellation of $1.1 billion for the CPR represents the full amount it is due to receive during the next two budget years. The White House says the public media system is politically biased and an unnecessary expense. The corporation distributes more than two-thirds of the money to more than 1,500 locally operated public television and radio stations, with much of the remainder assigned to National Public Radio and the Public Broadcasting Service to support national programming. Democrats were unsuccessful in restoring in the Senate. Lawmakers with large rural constituencies have voiced particular concern about what the cuts to public broadcasting could mean for some local public stations in their state. Sen. Lisa Murkowski, R-Ala., said Tuesday that the stations are "not just your news — it is your tsunami alert, it is your landslide alert, it is your volcano alert.' Less than a day later, as the Senate debated the bill, a 7.3 magnitude earthquake struck off the remote Alaska Peninsula, triggering tsunami warnings on local public broadcasting stations that advised people to get to higher ground. Sen. Mike Rounds, R-S.D., said he secured a deal from the White House that some money administered by the Interior Department would be repurposed to subsidize Native American public radio stations in about a dozen states. But Kate Riley, president and CEO of America's Public Television Stations, a network of locally owned and operated stations, said that deal was 'at best a short-term, half-measure that will still result in cuts and reduced service at the stations it purports to save.' Inside the cuts to foreign aid Among the foreign aid cuts are $800 million for a program that provides emergency shelter, water and family reunification for refugees and $496 million to provide food, water and health care for countries hit by natural disasters and conflicts. There also is a $4.15 billion cut for programs that aim to boost economies and democratic institutions in developing nations. Democrats argued that the Republican administration's animus toward foreign aid programs would hurt America's standing in the world and create a vacuum for China to fill. Sen. Brian Schatz, D-Hawaii, said the amount it takes to save a starving child or prevent the transmission of disease is minuscule, even as the investments secure cooperation with the U.S. on other issues. The cuts made to foreign aid programs through Trump's Department of Government Efficiency were having life-and-death consequences around the world, he said. 'People are dying right now, not in spite of us but because of us,' Schatz said. 'We are causing death.' After objections from several Republicans, GOP leaders took out a $400 million cut to PEPFAR, a politically popular program to combat HIV/AIDS that is credited with saving millions of lives since its creation under Republican President George W. Bush. Looking ahead to future spending fights Democrats say the bill upends a legislative process that typically requires lawmakers from both parties to work together to fund the nation's priorities. Triggered by the official rescissions request from the White House, the legislation only needs a simple majority vote to advance instead of the 60 votes usually required to break a filibuster. That meant Republicans could use their 53-47 majority to pass it along party lines. In the end, two Republican senators, Murkowski and Sen. Susan Collins of Maine, joined with Democrats in voting against the bill, though a few other Republicans also raised concerns about the process. 'Let's not make a habit of this,' said Senate Armed Services Committee Chairman Roger Wicker of Mississippi, who voted for the bill but said he was wary that the White House wasn't providing enough information on what exactly will be cut. Russ Vought, the director of the Office of Management and Budget, said the imminent successful passage of the rescissions shows 'enthusiasm' for getting the nation's fiscal situation under control. 'We're happy to go to great lengths to get this thing done,' he said during a breakfast with reporters hosted by the Christian Science Monitor. In response to questions about the relatively small size of the cuts -- $9 billion -- Vought said that was because 'I knew it would be hard' to pass in Congress. Vought said another rescissions package is 'likely to come soon.' 'But we're not there yet,' he said. ___ Associated Press writers Becky Bohrer in Juneau, Alaska, and Seung Min Kim contributed to this report. Kevin Freking And Mary Clare Jalonick, The Associated Press Sign in to access your portfolio
Newsweek
20 minutes ago
- Newsweek
Steve Bannon Rebukes 'Traitorous' Republicans
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Right-wing podcaster Steve Bannon issued a sharp rebuke Thursday against Republican lawmakers backing the Dignity Act, an updated bill proposing a pathway to citizenship for some undocumented immigrants. "Message to [Republican Representative Maria Elvira] Salazar and other traitorous Republicans: MASS DEPORTATIONS NOW; AMNESTY NEVER," Bannon, who served as the CEO of Trump's 2016 campaign and remains a key figure within the Make America Great Again (MAGA) movement, wrote on Gettr on Thursday morning. Bannon told Newsweek via phone on Thursday that the legislation has "zero chance" of going anywhere, adding that Salazar has "been pushing amnesty since she got to Congress." Why It Matters Nine Republican House lawmakers on Tuesday signed on to the reintroduction of an immigration-related bill called the Dignity Act that legislative sponsors say provides an "updated compromise" addressing legal status and protections for undocumented immigrants, border security, asylum reform, and visa reform. What to Know The Dignity Act, introduced in the House of Representatives on Tuesday, has drawn both bipartisan support and fierce criticism from the Republican Party's hardline wing. The proposed legislation, co-led by Salazar of Florida and Democrat Veronica Escobar of Texas, would grant legal status and protections to undocumented immigrants, overhaul the asylum process, and create a regulated pathway to citizenship for Dreamers and others residing in the U.S. without legal authorization. Backers have called it "the most impactful immigration reform in a generation." Salazar told reporters on Wednesday in Washington that the bill does not provide amnesty, nor does it provide a pathway to citizenship for illegal immigrants. Chief Strategist to the President Steve Bannon speaks during the Semafor World Economy Summit 2025 at Conrad Washington on April 23, 2025 in Washington, DC. Chief Strategist to the President Steve Bannon speaks during the Semafor World Economy Summit 2025 at Conrad Washington on April 23, 2025 in Washington, told Newsweek via phone on Thursday that the legislation has "zero chance" of going anywhere, adding that Salazar has "been pushing amnesty since she got to Congress." "She calls it a different thing, always has a different spin on amnesty," Bannon said. "Right now, people, the only thing they're interested in is mass deportations. They wanna see the deportations kick up." Support for the bill among Republicans has included Representatives Mario Rafael Diaz-Balart (Florida), Brian Fitzpatrick (Pennsylvania), Mike Lawler (New York), Dan Newhouse (Washington), David Valadao (California), Mike Kelly (Pennsylvania), Gabe Evans (Colorado), Marlin Stutzman (Indiana), Don Bacon (Nebraska), and Young Kim (California). The measure is also supported by 11 Democrats. Part of the legislation included allowing undocumented immigrants who have been in the U.S. since prior to 2021 to apply for up to seven years of legal status with work authorization, provided that they pay restitution and check in regularly with the Department of Homeland Security (DHS). "Don't get me wrong, the reason that we have the situation that we have with 10 or 20 million coming in during [President Joe] Biden's because of RINO [Republicans In Name Only] Republicans that have wanted and teased amnesty to attract people. The whole DACA [Deferred Action for Childhood Arrivals] fight and everything about amnesty attracts more people coming here 'cause they figure if they come here, they're eventually going to get a path to citizenship." This issue is "exactly" what has galvanized a stronger conservative of minorities, including Hispanics and African Americans, to vote more heavily for Trump in 2024, Bannon added. "[They are] finally coming our way and voting for us exactly on this issue, that there's not going to be any path to citizenship for anyone coming here illegally," he said. "People know that's what's driving down wages and making the schools intolerable, and destroying health care and deferring healthcare. It's a political winner. "But Salazar and people like her, her co-sponsors are always going to continue to bring her fantasy, and that just attracts more people to the United States." The 22-page bill summary presents myriad options for immigration reform, including the following major revisions: Granting legal status and protections to undocumented immigrants already living in the U.S. Reforming the asylum screening process to provide an opportunity for review and access to counsel. Creating new regional processing centers so migrants do not have to make the "perilous journey" to the U.S.-Mexico border to seek asylum. Investing in border security and modernizing land ports of entry. Mandating accountability for ICE. Providing a pathway to citizenship for Dreamers. The bill also alludes to the "recent riots in Los Angeles," a line that has drawn consternation across conservative circles. Bannon's criticism reflects a wider rift within the party over immigration policy. The Dignity Act stands in contrast to President Donald Trump's "One Big Beautiful Bill Act (OBBB)," which recently increased funding for enforcement and eliminated bond hearings for undocumented immigrants facing deportation. That legislation does not include a pathway to legal status or citizenship, focusing instead on deportation and stricter asylum rules. With the Dignity Act facing opposition from some within the party and advocacy from others citing economic needs and border reforms, intraparty divisions remain front and center as the debate over immigration continues. What People Are Saying Representative Maria Elvira Salazar of Florida on NBC's Meet the Press on Wednesday: "The border is secured, the BBB assures $150 billion for border security on the southern border. Now is the time to have a national conversation as to what we're going to do with those people who have been here over five years. They are needed in the economy and don't have a criminal record. Dignity is the best solution; it's not a path to citizenship, it's not amnesty. It lets them stay, work and pay taxes." Representative Veronica Escobar, in a statement earlier this week: "I have seen firsthand the devastating consequences of our broken immigration system, and as a member of Congress, I take seriously my obligation to propose a solution. Realistic, common-sense compromise is achievable, and is especially important given the urgency of this moment. I consider the Dignity Act of 2025 a critical first step to overhauling this broken system." Immigration attorney Rosanna Berardi told Newsweek on Tuesday: "Without congressional action to roll back many of the core immigration elements of H.R. 1—especially the funding and restrictions around detention, deportations, and parole—there's really no practical space for the Dignity Act's approach," Berardi said. "However, I do think this framework could help create bipartisan conversations focused on creating easier work-visa access and temporary status for migrant workers in industries like agriculture, hospitality, health care and manufacturing. Azoria CEO James Fishback on X: "No, Maria—the LA riots are a reason to *triple down* on deportations. MAGA is not gonna let Country Club Republicans give amnesty to illegals because they don't want to pay Americans a real wage to trim the Bermuda on hole nine. Also, it's disgraceful to call it the 'Dignity Act' when it disgraces the dignity of every American who pays taxes and follows the law—only to watch their job handed to one of Salazar's new 'constituents.'" What Happens Next Trump's bill, signed into law last weekend, drastically increases funding for immigration enforcement efforts, likely leading to more detentions and deportations.
New York Post
21 minutes ago
- New York Post
Cory Booker throws a tantrum, joins Dem walkout of Senate hearing on Trump judge pick Emil Bove
Spartacus has returned! An enraged Sen. Cory Booker (D-NJ) shouted over Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) for eight straight minutes Thursday before joining his fellow Democrats in storming out of a business meeting to consider President Trump's nominees — including that of his former personal attorney, Emil Bove. Booker threw a fit after Grassley spurned his request to debate Bove's nomination to the Philadelphia-based Third Circuit Court of Appeals and proceeded with a vote to report the nominee to the Senate floor after Democrats vacated the meeting room. 'I don't understand this,' Booker raged. 'What are you afraid of, about even debating this, putting things on the record, hearing from every senator?' 'Dear God. That's what our obligations are,' he continued. ' … There's no need to rush this.' 4 Sen. Cory Booker put on a furious display during the Senate Judiciary Committee's hearing on Emil Bove's nomination. C-SPAN 4 Republicans kept proceeding with votes as Senate Judiciary Committee Democrats left the hearing room. C-SPAN 'You are obligated to address a point of order according to the rules of this committee,' the Garden Stater went on. 'You can overrule me by a Senate vote. You're violating your own rules.' Grassley rebuffed Booker, telling him he was 'out of order' for interrupting proceedings. Democrats had wanted to hear from a whistleblower, fired former Justice Department lawyer Erez Reuveni, who alleged Bove encouraged the Trump administration to ignore a court order. According to Reuveni, Bove while serving as principal deputy attorney general insisted that migrant flights to El Salvador's notorious Terrorism Confinement Center (CECOT) complex 'take off no matter what' after a federal judge ordered the transit halted. Deputy Attorney General Todd Blanche has denied Reuveni accusations as 'utterly false.' 4 Senate Judiciary Chairman Chuck Grassley largely ignored Sen. Cory Booker's protest. C-SPAN Booker, who broke a Senate filibuster record in April, decried the ordeal as 'absolutely insane.' 'We're simply asking for a credible amount of time to air our concerns before the vote,' said Booker, who in April broke the Senate's record for longest filibuster speech. 'This undermines the basic decency of this committee.' Sen. Mazie Hirono (D-Hawaii) was heard murmuring 'this is a kangaroo court' as she and other Democrats — including ranking member Dick Durbin (D-Ill.) stormed out of the room. During his outburst, Booker lauded the 91-year-old Grassley as a 'good man' and a 'decent man.' 'Why are you doing this? What is Donald Trump saying to you that is making you do something which is violating the decorum of this committee, the rules of this committee, the decency?' 4 Emil Bove's judicial nomination has been met with fierce resistance from Democrats. via REUTERS Senate Republicans have been under pressure to pick up the pace with judicial nominations after lagging behind both the Biden administration and the first Trump administration. On Thursday, despite the Democrats' protests, the Judiciary Committee advanced the nominations of Bove and four other Trump choices for the federal bench.
