Federal lawmakers introduced H.R. 10373, the "Protecting Workers' Wages from Medical Debt Act," on September 14, 2026, to ban wage garnishment—the practice of deducting money directly from paychecks—for medical bills. The bill would amend the Fair Labor Standards Act to prohibit courts and agencies from issuing or enforcing garnishment orders tied to any health care debt, covering hospital bills, doctor visits, prescription drugs, and emergency care.
Today, creditors can legally reduce paychecks by up to 25 percent to collect medical debt. The bill would eliminate this tool for health-related debt specifically, while leaving garnishment in place for other consumer debts. Supporters say the measure protects workers from losing essential income because of medical emergencies they did not choose.
Table of Contents
- How Medical Debt Garnishment Works Now
- The Scale of Medical Debt in America
- What H.R. 10373 Would Change
- Who Supports the Bill and What Happens Next
- What the Bill Does Not Address
- Frequently Asked Questions
How Medical Debt Garnishment Works Now
Wage garnishment is a court-ordered deduction from your paycheck. Under current federal law, creditors can garnish up to 25 percent of a worker's take-home pay for any consumer debt, including medical bills.
A creditor sues you for unpaid medical debt, obtains a judgment, and asks a court to order your employer to send a portion of your wages to the creditor instead of to you. Medical debt collection agencies use garnishment more often than other debt collectors. Medical debt is three times more likely to result in wage liens or garnishment than other consumer debt types, according to health finance analysis. Once a garnishment order is issued, your employer is legally required to comply, even if it leaves you struggling to cover rent or food.
The Scale of Medical Debt in America
Medical debt is the largest source of debt collection in the United States. Approximately 100 million Americans hold roughly $220 billion in medical debt, making it larger than credit card debt or utility bills combined. Most of these debts arise from emergency care, unexpected hospitalizations, or treatments not fully covered by insurance.
The financial consequences compound quickly. Unpaid medical bills sent to collections correlate with a 50 percent higher likelihood of household bankruptcy, according to consumer debt research. When a garnishment order reduces your paycheck by 25 percent, you may fall behind on rent, utilities, or other essential expenses, even if the medical bill itself was unavoidable.
What H.R. 10373 Would Change
The bill defines medical debt broadly to cover any money owed for items or services provided by any health care facility or health care provider. This includes hospital bills, office visit charges, emergency room services, prescription drugs, and imaging or laboratory work. The prohibition would be absolute—courts could not issue garnishment orders for medical debt under any circumstances if the bill becomes law.
The measure takes effect six months after enactment to give employers and courts time to adjust their administrative procedures. Existing garnishment orders for medical debt would need to be stopped, and employers would need to update their payroll systems to recognize medical debt as non-garnishable. Workers with active garnishments at that time would have their deductions halted.
Who Supports the Bill and What Happens Next
The bill is backed by labor organizations including the American Federation of Teachers and the Service Employees International Union, along with consumer advocacy groups Families USA and Public Citizen. Representatives Robert C. Scott (Virginia), Ilhan Omar (Minnesota), and Greg Casar (Texas) introduced the measure. The bill has been referred to the House Committee on Education and Workforce.
It will need committee approval, a floor vote in the House, passage in the Senate, and the President's signature to become law. At this stage, the bill has no companion measure in the Senate, and no vote date has been set.
What the Bill Does Not Address
The bill protects wages from garnishment but does not eliminate medical debt itself or prevent other collection methods. Medical debt collectors could still pursue lawsuits, place liens on property, or use other collection tactics short of wage garnishment. Creditors could also still report unpaid medical debt to credit bureaus, affecting your credit score. The measure also does not address out-of-pocket costs, insurance coverage gaps, or underlying medical pricing. It is a protection against one consequence of unpaid medical bills, not a solution to the cost of health care or the underlying reasons people accumulate medical debt in the first place.
Frequently Asked Questions
Would this bill eliminate medical debt?
No. The bill only stops courts from garnishing wages for medical debt. Creditors could still sue for payment, report debt to credit bureaus, or use other collection methods.
Does this bill cover all types of medical debt?
Yes. The bill applies to any money owed for items or services provided by health care facilities or health care providers, including hospitals, doctors, emergency care, prescriptions, and tests.
When would this law take effect if passed?
The bill would take effect six months after enactment, giving employers and courts time to adjust their procedures and payroll systems.
What happens to existing garnishment orders if this bill passes?
Existing medical debt garnishment orders would be stopped, and employers would halt those deductions from paychecks.