Trump Ends Federal Funding for Minor Gender-Affirming Care

President Donald Trump finalized a rule on August 11, 2026, prohibiting the use of Medicaid and Children's Health Insurance Program (CHIP) funds for gender-affirming care for minors. Effective October 13, the restriction applies to Medicaid patients under 18 and CHIP recipients under 19, covering puberty blockers, cross-sex hormone treatments, and surgical procedures. While the rule does not make these procedures illegal, it removes federal cost-sharing, forcing states to either use their own funds or end public financing for such care.

The administration, including Health Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz, characterized the treatments as "experimental interventions" that lack sufficient clinical evidence and pose risks of irreversible harm. The policy includes a six-month transition period for patients currently receiving hormone therapy to taper off treatment, though mental health services remain eligible for federal funding. Federal savings are estimated between $138 million and $235 million over the next decade.

The move has sparked immediate legal and professional backlash. Democratic state attorneys general have challenged the rule in Oregon federal court, arguing it exceeds federal authority. Medical organizations, including the American Medical Association and the American Academy of Pediatrics, alongside The Trevor Project, condemned the rule as a dangerous restriction on doctor-prescribed healthcare. These groups maintain that medical decisions should remain between patients, families, and professionals rather than being dictated by a federal mandate.