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Federal funding threats paused against providers of trans youth health care
January 15 2026, 08:15

Late last week, 22 states filed a Motion for Summary Judgment in their legal challenge to the Declaration issued by Health and Human Services (HHS) Secretary Kennedy, which claims that well-established medical care for transgender adolescents and young adults is “neither safe nor effective as a treatment” for gender dysphoria. The Declaration purports to enable HHS to exclude providers from participation in Medicare and Medicaid, based purely on the fact that they provide medical care for transgender youth.

In an important development, HHS agreed, as part of a joint briefing schedule, not to issue notices of exclusion from Medicare or Medicaid to any providers. Under the current timeline, that protection lasts at least into the spring.

“This agreement brings clarity for patients, families, and providers. HHS has committed that, while this litigation proceeds, it will not initiate Medicare exclusion actions against hospitals providing transgender health care,” said Jennifer Levi, senior director of transgender and queer rights at GLBTQ Legal Advocates & Defenders (GLAD Law).

“The challenged declaration followed draft CMS rules and rejected established science and clinical experience without going through the required process for setting federal health policy. That deviation is now being tested in court in a case brought by twenty-two states.

“Parents see every day how appropriate medical care supports their children’s health and well-being. This agreement allows families and providers to move forward without the threat of sudden federal action, while the courts resolve the states’ claims.”

— from a GLBTQ Legal Advocates & Defenders (GLAD Law) press release (Read the complete press release here.)

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