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States Sue Trump Administration over Rule Forbidding Federal Funds for Youth Gender Care

The coalition says the rule exceeds federal authority and would bar reimbursement for medically necessary care for minors and some young adults.

  • On Wednesday, a coalition of 22 states led by Connecticut Attorney General William Tong sued the Trump administration in Massachusetts federal court, challenging a rule barring federal Medicaid and CHIP funding for gender-affirming care for minors.
  • The Centers for Medicare & Medicaid Services finalized the rule earlier this month, categorizing gender-affirming care as experimental; it takes effect October 13, 2026, prohibiting federal reimbursement for beneficiaries under 18 and CHIP recipients under 19.
  • States argue the policy violates the Administrative Procedure Act and usurps state authority to determine medical necessity. More than 90% of the more than 30,000 public comments opposed the restriction, according to Tong.
  • Administrator Mehmet Oz defended the rule, stating, "Children deserve our protection, not experimental interventions." The mandate pressures states to fund care themselves or stop covering it, though New Mexico will cover the difference.
  • U.S. District Judge Mustafa T. Kasubhai ruled earlier this year that similar administrative declarations exceeded federal authority, establishing precedent for blocking such efforts. Federal courts have repeatedly blocked prior Trump administration restrictions on gender-affirming care.
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CTNewsJunkie.com broke the news on Thursday, September 3, 2026.
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