Good Thursday morning! The Biden administration moves to block medical debt from credit reports; inflation drops, and summer travel trends as passport renewal goes online.

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Good morning,

Tennis legend Roger Federer gave Dartmouth graduates some advice over the weekend, and we are loving the lessons.

• 🎾 The 20-time Grand Slam champ delivered three "tennis lessons" he has relied on: "Effortless" is a myth, don’t dwell on lost points, and life is bigger than the court.

• He says that "perfection is impossible." Having won 80% of 1,526 singles matches, the Swiss star noted he only won 54% of the points in those matches.

  • "When you lose every second point, on average, you learn not to dwell on every shot," said Federer. "You want to become a master at overcoming hard moments. That to me is the sign of a champion."

Have a good one!

Mosheh, Jill, & Lauren

PS: Don’t forget to refer friends & family to sign up for the Mo Newsletter… you could get free Mo News merch — details at the bottom of this newsletter!

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💳 NEW BIDEN RULE SEEKS TO KEEP MEDICAL DEBT OFF CREDIT REPORTS

The Biden administration proposed new regulations this week that would stop medical debt from impacting Americans’ credit scores.

Americans owe more than $200 billion in medical debt. It impacts the credit rating for more than 15 million people — hurting their ability to get housing, loans, and even jobs.

THE PROPOSAL
Vice President Kamala Harris and Director of the Consumer Financial Protection Bureau, Rohit Chopra, say getting sick should not be unjustly punished.

• The change: Not only would credit-reporting agencies stop factoring in medical debt when calculating credit scores, but lenders also would not be allowed to factor medical debt into someone’s loan eligibility.

• The numbers: The White House says the move will raise those millions of Americans’ credit scores by an average of 20 points. And more, because of that jump, about 22,000 additional mortgages could be approved each year.

• Up next: The public can comment on the proposal for the next few weeks, then if passed, officials say the change would go into effect in 2025. That’s after the presidential election, which means the winner could impact the policy.

CFPB research shows that medical debt, unlike other kinds of debt, is not a strong predictor for a person’s creditworthiness. That’s, in large part, because of the complexities of the American health care system. And more, they found medical collection debt reported to the credit bureaus was “plagued by inaccuracies.”

REAL LIFE IMPLICATIONS 
Healthcare debt is a uniquely American issue. Hospitals commonly use credit reporting as a way to push patients to pay their bills.

• Some states, local governments, companies, and hospital systems have stepped in to help with the problem.

  • Colorado and New York barred the inclusion of medical debt on credit files. NYC canceled $2 billion in individuals’ medical debt.

  • The three largest credit agencies — Equifax, Experian, and TransUnion — stopped including medical debt on credit reports that had been paid, were less than a year old, or under $500.

• However, a lasting solution to medical debt is challenging as 26 million Americans remain uninsured. And even with 90% of Americans on some form of health insurance, high deductibles — what patients pay before insurance kicks in — leave some insured people with accumulating debt, while some insurers do not cover certain healthcare costs.

• And costs are not going down:

  

📌 GOOD ECONOMIC NEWS: INFLATION SLOWS AGAIN

We have positive inflation news: Consumer prices rose 3.3% in May compared to a year ago, that’s the lowest in 3 years and better than many economists expected.

• However, the Federal Reserve still decided NOT to cut interest rates. They have been reluctant to lower the rates until inflation eases even more.

  • Inflation has slowed significantly from a peak of about 9% two years ago, but higher than the Fed’s 2% target rate.

• More good news: Wages have outpaced inflation!

Help at home: Continuing a trend observed over recent months, food prices provided some relief in the inflation report. They increased by 2.1% over the year ending in May, which was substantially lower than the overall inflation rate. But, grocery chains and food producers have been accused of beefing up prices and shrinking products to increase profits.

🛂 IN TIME FOR SUMMER, AMERICANS CAN RENEW PASSPORTS ONLINE

The US State Department relaunched an online passport renewal portal yesterday. The trial program is open to a limited group of Americans and is intended to streamline the process.

It comes as surveys show Americans set to break last year’s record-breaking summer travel season.

RENEW ONLINE
First launched in 2022, the State Department took the online renewal program offline in 2023. Now, officials say they reviewed users’ comments and updated the web interface and photo upload tool. 

• Requirements: Only for routine renewals, not expedited services, applicants must be 25+ and already have a passport, with 10-year validity, that had been issued between 2009 and 2015.

• How: At 1 p.m. ET, the State Department will accept a limited number of applications on their website each day.

• Goal: Make getting a passport easier and faster. But for now, officials warn that online renewal may take six to eight weeks — the same amount as mailing. But, mailing materials adds time, so it sounds like it will be net positive even now.

WHERE PEOPLE ARE GOING THIS SUMMER
And for the people getting their passports, where are they headed? The annual Summer Travel Index by Tripadvisor, shows that 95% of respondents are planning to travel this summer: over half planning as much as last year and 44% planning to do more!

• Where people are going: Internationally, Americans’ top choice is Cancun, while Las Vegas claims the top spot for domestic travelers.

  • Up next: London, England; Punta Cana, Dominican Republic; Paris, France; and Cabo San Lucas, Mexico.

  • Globally, Paris is a top choice for travelers… Think: Summer Olympics.

• Big spenders: Over a quarter of Americans plan to spend $5,000 or more on their vacations.

⏳ SPEED READ

🚨NATION

📌 Heavy rains shut down I-95, ground flights in Florida (NY TIMES)

📌 US House votes to hold attorney general in contempt (REUTERS)

📌 Oklahoma Supreme Court dismisses lawsuit brought by survivors of Tulsa Race Massacre (CNN)

📌 Anti-Israel protesters target homes of NYC Jews (NY POST)

📌 Bus passengers frantically texted loved ones as gunman hijacked an Atlanta commuter bus during rush hour (CNN)

🌎 AROUND THE WORLD

📌 Pope Francis accused of repeating homophobic slur that prompted Vatican apology (NBC NEWS)

📌 Russian warships arrive in Cuba (AP NEWS)

📌 Fire in Kuwait building kills 49 foreign workers (REUTERS)

📌 US scrambling to prevent Israel-Lebanon war (AXIOS)

📌 Houthi terrorists abduct aid workers from UN, other orgs (MO NEWS)

📱BUSINESS, SCIENCE & TECH

📌Fed holds rates steady, indicating only one cut coming this year (NBC NEWS)

📌 Elon Musk and SpaceX sued by former engineers for alleged sexual harassment (FORBES)

📌 Boeing's Starliner now has 5 leaks while parked outside the ISS (GIZMODO)

📌 9/11 first responders with severe debris exposure have higher risk of dementia (CBS NEWS)

🎬 SPORTS & ENTERTAINMENT

📌 Bridgerton showrunner Season 4 revelations (HOLLYWOOD REPORTER)

📌 Oprah hospitalized with serious stomach bug (PEOPLE)

📌 Kevin Jonas shares skin cancer diagnosis (CNN)

📌 Billy Ray Cyrus files for divorce from Firerose after 7 months of marriage, claims fraud (AP)

📌 Céline Dion took up to 90 milligrams of Valium during health struggles: 'It could have been fatal' (PEOPLE)

📌 Jerry West, NBA legend, dies at age 86 (NBC NEWS)

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🗓 ON THIS DAY: JUNE 13

• 1866: US House of Representatives passes the 14th Amendment after the Civil War, granting citizenship and equal civil and legal rights to everyone born in the United States.

• 1966: The Miranda rights are established. The rights (as the right to remain silent, to have an attorney present, and to have an attorney appointed if indigent) of which an arresting officer must advise the person being arrested.

• 1971: The New York Times published the “Pentagon Papers,” revealing that the US had secretly enlarged the scope of its actions in the Vietnam War without telling the media.

• 1995: Alanis Morissette released her ‘Jagged Little Pill’ album.