Unpaid medical bills will no longer appear on credit reports, where they can block people from mortgages, car loans or small business loans, according to a final rule announced Tuesday by the Biden administration.

President Joe Biden's outgoing administration announced on Tuesday a ban on medical debt in American consumers' credit reports, making good on a campaign year pledge less than two weeks before leaving office.

The Biden Administration announced an initiative Tuesday to remove an estimated $49 billion in medical debt from credit reports.

The move, which comes less than two weeks before President-elect Donald Trump is set to take office, represents a challenge to the new administration.

The rule will remove an estimated $49 billion in medical bills from the credit reports of millions of Americans.