rendering an html file within react

I am getting an html file from an external source and wanting to render it within a modal in react. It looks like it is receiving the file properly but I am getting this error.

Module parse failed: Unexpected token (1:0) You may need an appropriate loader to handle this file type, currently no loaders are configured to process this file. See https://webpack.js.org/concepts#loaders

| | <script language="javascript" ...

Here is my webpack.config,js file

const MiniCssExtractPlugin = require('mini-css-extract-plugin');

const isProduction = process.env.NODE_ENV == 'production';


const stylesHandler = isProduction ? MiniCssExtractPlugin.loader : 'style-loader';



const config = {
    entry: './src/index.js',
    output: {
        path: path.resolve(__dirname, 'dist'),
    },
    plugins: [
        // Add your plugins here
        // Learn more about plugins from https://webpack.js.org/configuration/plugins/
    ],
    module: {
        rules: [
            {
                test: /\.(js|jsx)$/i,
                loader: 'babel-loader',
            },
            {
                test: /\.css$/i,
                use: [stylesHandler,'css-loader'],
            },
            {
                test: /\.s[ac]ss$/i,
                use: [stylesHandler, 'css-loader', 'sass-loader'],
            },
            {
                test: /\.(eot|svg|ttf|woff|woff2|png|jpg|gif)$/i,
                type: 'asset',
            },
            {
                test: /\.html$/i,
                loader: "html-loader",
              },

            // Add your rules for custom modules here
            // Learn more about loaders from https://webpack.js.org/loaders/
        ],
    },
};

module.exports = () => {
    if (isProduction) {
        config.mode = 'production';
        
        config.plugins.push(new MiniCssExtractPlugin());
        
        
    } else {
        config.mode = 'development';
    }
    return config;
};

and here is my App.js file where my react code is located.

import './App.css';
import DOMPurify from 'dompurify';
import Modal from 'react-modal';

import htmlFile from './payee-verification-dropin.html'
import { useState } from 'react';

function App() {
  const [showModal, setShowModal]= useState(false);
  const myHTML = htmlFile;
  const mySafeHTML = DOMPurify.sanitize(myHTML);

  return (
    <div className="App">
      <Modal
      isOpen={showModal}
      onRequestClose={() => setShowModal(false)}
      style={{
        overlay: {},
        content: {
          position: "absolute",
          top: "10%",
          left: "25%",
          width: "839px",
          height: "81%",
          borderRadius: "10px",
          backgroundColor: "#FAFAFA",
          padding: "0px",
        },
      }}
      >
    <div dangerouslySetInnerHTML={{_html: mySafeHTML }} />
    <h1>Hello</h1>
    </Modal>
    <button onClick={() => setShowModal(true)}>CLick</button>
    </div>
  );
}

export default App;

Lert me know if you need more info to diagnose this problem.

Thank you!

I ran npx webpack init in order to set up webpack and I ran npm install --save-dev html-loader to try and install an html loader.