The Dictatorship
A new ruling could financially punish Americans for their health issues
A Trump-appointed federal judge has blocked a rule the Consumer Financial Protection Bureau issued just before Joe Biden left the White House that would have banned medical debt from Americans’ credit reports.
The ruling is a terrible blow to consumers.
CNN reports that “Judge Sean Jordan of the US District Court of Texas’ Eastern District found that the rule exceeded the bureau’s authority under the Fair Credit Reporting Act, agreeing with the arguments of two industry associations, which had filed a lawsuit against the rule that was later joined by the Trump administration.”
The ruling is a terrible blow to consumers, and it pushes the country back toward a preposterous norm of punishing Americans financially for their health issues.
Thanks to our dysfunctional and immoral U.S. health care system, tens of millions of Americans owe medical debt. And on top of having to pay off that debt, an additional indignity for debtors is seeing their credit scores take a hit. That means people of limited financial means who have incurred medical debt are not only paying off onerous medical bills, but then also facing penalties around eligibility and interest rates when they try to do things like open up new credit cards, secure mortgages or get approved to rent apartments.
As I wrote this year when the rule was announced:
On a conceptual level, this new rule underscores how medical debt is different from most other kinds of debt that make up credit reports. It’s not a reflection of how someone wants to spend their money, but of decisions between seeking care or potentially enduring a painful or life-threatening hardship. … In addition, a lot of medical collections are the result of surprise medical bills that emerge even after people think they’ve done everything in their power to avoid incurring medical debt.
The CFPB estimated that the nixed rule would’ve wiped out $50 billion in medical bills from the credit reports of about 15 million Americans. The bureau calculated that would’ve raised credit scores for affected people by 20 points on average, leading to “the approval of approximately 22,000 additional, affordable mortgages every year.” Past CFPB research has also found that medical debt is a “poor predictor” of whether someone will pay back a loan.
That the Trump administration joined the lawsuit against the rule — while effectively shutting down the CFPB — speaks to the priorities of right-wing populism. “The forgotten men and women of our country will be forgotten no longer,” the president declared after his first election victory. But that same president and his GOP allies in Congress cut Medicaid and food stamps and allied with business lobbies against millions of Americans facing crushing medical debt. It’s clear, yet again, whose side Trump is on.
Zeeshan Aleem is a writer and editor for BLN Daily. Previously, he worked at Vox, HuffPost and Blue Light News, and he has also been published in, among other places, The New York Times, The Atlantic, The Nation, and The Intercept. You can sign up for his free politics newsletter here.
The Dictatorship
Iran moves to take permanent control of Strait of Hormuz, a vital shipping choke point
Iran announced on Thursday that it was drafting a “protocol” that would allow it to “monitor transit” by oil tankers through the Strait of Hormuzthe strategic waterway Tehran has shut downsending oil and gas prices soaring in the U.S. and across the world.
Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, said tanker traffic through the narrow route “should be supervised and coordinated” between Iran and Oman, the two countries that border the strait, according to a translation of a report from Iran’s state news agency cited by CNBC.
“Of course, these requirements will not mean restrictions, but rather to facilitate and ensure safe passage and provide better services to ships that pass through this route,” Gharibabadi said according to the report.
President Donald Trump has suggested that the U.S. may leave it to other countries to end Iran’s de facto blockade of the strait, which it enforces by firing missiles at tankers. Trump has called on European nations to do so, but experts say Europe lacks the military resources to halt Iranian attacks on tankers for the long term.
Iranian and Omani officials did not respond to requests for comment from MS NOW.
For decades, the strait has been an international waterway, controlled by no country, that ships from all nations could transit.

Gregory Brew, a senior Iran and oil analyst at the Eurasia Group, said that if Iran manages to take control of the Strait of Hormuz permanently, it would be a “colossal win” for the country.
“It’s a massive strategic win, given that Iran has demonstrated that it can close the strait,” Brew told MS NOW. “It’s a huge financial win.”
Brew added that if Iran gains long-term control of the straitit would be more powerful than it was before the Trump administration attacked it. Iran’s parliament passed a law to begin charging “tolls” of up to $2 million per ship, which could mean as much as $100 billion in annual revenue — or the equivalent of Iran’s current annual oil export earnings.
“It’s not innocuous,” Brew said, referring to the protocol announced on Thursday. “Iran has passed legislation and is now claiming to be coordinating with Oman in establishing joint management of the Strait of Hormuz.”
Brew predicted that Oman, which has less oil and wealth than other Gulf nations, may be willing to accept a temporary arrangement that could help end the conflict.
“The Omanis are probably hedging; they’ve always tried to manage their relationship with Iran, and they lose relatively little by cooperating with Iran right now to ease pressure on the strait,” Brew said. “The bigger question is whether they continue to cooperate after the war.”
Ted Singer, a former senior CIA official who oversaw the agency’s operations in the Middle East, said Iranian officials are likely trying to see what they can achieve.
“I wouldn’t see this as a fork in the road,” Singer told MS NOW.
Singer, who served as a CIA station chief in five different countries over a 35-year career, said Iranian officials could be trying to stoke division between gulf countries.
“The Iranians are good at doing more than one thing at a time,” he said. “Why not stake out a maximalist position on tolls, then toss out options to roil the waters?”
The United Arab Emirates, for example, is adamantly opposed to Iran taking control of the strait.
“The Iranians play multi-dimensional chess,” said Singer, now a senior adviser to the Chertoff Group, a security consulting firm run by Michael Chertoff, who served as secretary of Homeland Security in the George W. Bush administration.
“Try to create division between Oman and the rest of the Gulf countries,” Singer said. “Why not fiddle around with this and see if something sticks?”

David Rohde
David Rohde is the senior national security reporter for MS NOW. Previously he was the senior executive editor for national security and law for NBC News.
Ian Sherwood is the director of international newsgathering for MS NOW, a former executive editor for NBC News and a former deputy Washington bureau chief for the BBC.
The Dictatorship
Thursday’s Mini-Report, 4.2.26
Today’s edition of quick hits.
* Targeting Iranian infrastructure: “President Trump celebrated the destruction of a bridge near Tehran on Thursday, warning on social media that there was ‘much more to follow.’ The attack on the B1 bridge between Tehran and the nearby city of Karaj killed eight people and wounded 95, according to Fars, a semiofficial Iranian news agency.”
* I don’t think the speech worked: “The price of oil rose sharply and stocks wavered on Thursday after President Trump, in an address from the White House the day before, said the war against Iran was ‘nearing completion’ but failed to offer a concrete timeline and committed to more attacks. In the 19-minute address, Mr. Trump said U.S. forces would hit Iran ‘extremely hard over the next two to three weeks.’”
* Reversing one of Noem’s worst ideas: “Homeland Security Secretary Markwayne Mullin on Wednesday rescinded a rule that DHS expenditures over $100,000 be personally approved by his office, ending a widely criticized policy implemented by his predecessor Kristi Noem that critics said put a particular burden on the Federal Emergency Management Agency ’s work aiding disaster response and recovery.”
* The latest on the ballroom: “Donald Trump’s handpicked National Capital Planning Commission voted Thursday to authorize the president’s plan to erect a gilded 90,000-square-foot White House ballroom in place of the historic East Wing, which was destroyed last fall to make way for the ballroom.”
* Remember when Congress, by constitutional mandate, had the power of the purse? “President Donald Trump said Thursday he will soon sign an order to pay all Department of Homeland Security employees who have gone without paychecks during the record-long partial government shutdown that has reached 48 days.”
* A year after “Liberation Day,” there’s fresh tariff news: “President Donald Trump announced Thursday he will levy tariffs as high as 100 percent on some name-brand pharmaceuticals and is adjusting tariffs on products that contain steel and aluminum, the administration’s first move to expand duties since the Supreme Court dealt his trade agenda a blow in February.”
* The latest from Artemis II: “NASA’s latest update about the Artemis II moon mission shows a breathtaking view of Earth as the Orion capsule with four astronauts on board orbits tens of thousands of miles above. Hitching a ride beyond Earth’s atmosphere atop NASA’s powerful Space Launch System rocket, the three Americans and one Canadian selected for the mission are preparing to begin heading toward the moon.”
See you tomorrow.
Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”
The Dictatorship
Judge weighs legality of Trump’s planned arch near Arlington National Cemetery
A federal judge is weighing whether the Trump administration can legally build a 250-foot arch just across the Potomac River from the Vietnam and Lincoln memorials, as three veterans who fought in Vietnam have argued the project would violate federal law and permanently alter one of the country’s most sacred landscapes.
Judge Tanya Chutkan declined on Thursday to issue a preliminary injunction, instead asking the parties to report by 5 p.m. on Friday whether they can agree to halt groundbreaking while the case proceeds. If no agreement is reached, she will ask the executive branch to provide supplemental sworn declarations disclosing any awards, grants, contracts, permits or other relevant information related to the arch’s construction.
The suit was brought by three Vietnam War veterans and an architectural historian, who argued the project would obstruct views of the Vietnam War and Lincoln memorials from Arlington National Cemetery. The plaintiffs contended the planned arch would violate federal laws governing historic sites and monuments, and the White House cannot lawfully proceed without congressional authorization.
The plaintiffs cited Trump’s various Truth Social posts and public statements to support their claim that construction is underway, pointing to design specifications, a target completion date of July 4 and renderings backed by a White House fact sheet. They also argued the National Park Service must sign off on any use of the land before construction begins.
President Donald Trump told reporters in January that his proposed arch “will be the most beautiful in the world,” and is already “being built.” He also shared renderings of the arch on his Truth Social account.
The government’s attorney, Bradley Craigmyle, argued that Trump’s media and social media statements constitute hearsay. Chutkan pushed back sharply, saying Trump’s posts are admissible as statements by a party. Throughout the hearing, Craigmyle argued the project is in the conceptual phase despite the president’s statements.
Today’s hearing comes as the National Capital Planning Commission voted 9-1, with two abstentions, to approve construction for Trump’s 90,000-square foot ballroom at the White House, clearing the final procedural hurdle for the project. Chutkan referenced the ballroom case during the hearing, saying, “If we haven’t had the whole White House ballroom situation, this might be a little more academic than it is now.”
Selena Kuznikov contributed to this article.
Peggy Helman is a desk associate at MS NOW.
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