Newly introduced legislation in the Vermont state house would provide funds to offset federal cuts aimed at health care providers of gender-affirming services. Reports Edge Media Network:

Vermont lawmakers introduced House Bill H. 576 on January 6, 2026, to create the Affirming Health Care Trust Fund, a state mechanism designed to sustain gender-affirming health care services in response to federal funding pressures. The bill was read for the first time and referred to the House Committee on Health Care on that date. 

Sponsored by Representatives Daisy Berbeco of Winooski, Tiffany Bluemle of Burlington, and Troy Headrick of Burlington, the legislation seeks to address gaps in care created by hospitals discontinuing services due to threats against their Medicaid and Medicare funding. The Trump administration has intensified efforts to withhold federal funds from hospitals providing gender-affirming care to transgender youth, prompting over 20 systems nationwide to halt programs, including recent closures in Colorado. 

The proposed trust fund, administered by the Vermont State Treasurer, would offer direct financial support to clinics, providers, and nonprofits delivering gender-affirming care outside federal funding streams. It would finance patient costs for those otherwise unable to access treatment, establish new Vermont-based clinics, and cover malpractice and liability insurance for clinicians. Services supported include psychiatric, therapeutic, diagnostic, preventative, rehabilitative, and supportive care, as well as medications affirming an individual’s gender identity, explicitly excluding conversion therapy and uninitiated surgical interventions on minors with variations in sex characteristics.

Rep. Daisy Berbeco emphasized the funding instability facing providers: “Over the past year we’ve seen a growing mismatch between the need for affirming health care services and the stability of funding mechanisms supporting them. .. Constituents, providers, and advocates have been clear that uncertainty—especially abrupt gaps or changes in coverage—creates real harm for patients and makes long-term service delivery difficult for providers. The bill is intended to address that instability and support continuity of care. 

The bill includes safeguards for patient privacy, prohibiting disclosure of identifiable data, provider identities, or award recipients to federal authorities or out-of-state entities, extending beyond typical shield laws. Funding sources could include state appropriations, private donations, grants, and future federal allocations under supportive administrations. If enacted, the fund would activate immediately, with an oversight board convening by August 1, 2026.

Read the complete Edge Media Network story here.

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