New Lawsuit Challenges HHS Policy on Transgender Treatment

On Tuesday, New York Attorney General Letitia James, alongside a group of state attorneys general, filed a lawsuit against the federal government. The legal action contends that a recent policy from the Department of Health and Human Services (HHS) pressures states to discriminate against transgender individuals or face the loss of vital funding.

The lawsuit is a direct challenge to a federal mandate that ties billions of dollars in funding for health, education, and research to compliance with executive orders regarding gender-related treatments.

James expressed concern, stating, “The federal government is forcing states to choose between their values and the critical funding their residents depend on. This policy denies the dignity and existence of transgender people and jeopardizes health care for their families, essential research, and educational programs that support young people’s success.”

Last month, HHS unveiled a broad set of regulations aimed at eliminating “sex refusal procedures” for minors, a directive linked to an executive order by former President Donald Trump from January 2025. The order seeks to protect children from what it describes as “chemical and surgical mutilation.”

The HHS warning informed healthcare providers that they might be excluded from federal health programs if they administer treatments such as puberty blockers, hormone therapy, and sex reassignment surgery to minors.

According to the lawsuit, failure to comply with this directive could lead to terminated grants, demands for repayment of funds already spent, or potential civil or criminal consequences.

The attorneys general argue that HHS overstepped its authority by enforcing such conditions, effectively trying to rewrite federal law through administrative means.

The complaint also highlights that HHS has not clearly defined what constitutes compliance, leaving various stakeholders unsure of what policies might put their funding at risk.

Furthermore, James and her coalition contend that the executive order contradicts laws in several states aimed at protecting transgender individuals from discrimination.

In summary, the lawsuit requests that a federal court rule the policy illegal, prevent HHS from enforcing it, and allow states and agencies to continue receiving federal support without needing to alter their current policies.