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States Sue Feds over Gender Ideology Rules on Health Grants

Twelve states challenge HHS grant rules they say force discrimination against transgender people and seek to undo Title IX protections, risking billions in health and education funding.

  • 12 states led by New York and California sued HHS in Rhode Island, challenging grant conditions tied to Trump's Jan. 28 executive order, which the lawsuit says oversteps authority.
  • Title IX changes underlie the dispute, with the lawsuit alleging HHS is attempting to rewrite protections that recognize gender identity, since Oct. 1.
  • New York Attorney General Letitia James warns the order risks $80 billion in federal funding, and the lawsuit names HHS Secretary Robert F. Kennedy Jr. and CMS director Dr. Mehmet Oz as defendants.
  • New York Attorney General Letitia James called the policy a `cruel and unjust directive` forcing states to choose between values and funding, while Oregon Attorney General Dan Rayfield said it interferes with personal medical decisions.
  • The administration's Jan. 28 executive order states it will not fund transgender transition procedures for minors, and HHS press secretary highlighted a December initiative targeting such care under Medicare and Medicaid programs.
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States sue feds over gender ideology rules on health grants

(The Center Square) – New York, California and Oregon are leading 12 states suing the U.S. Department of Health and Human Services over allegedly threatening to withhold billions of dollars in grants unless states illegally discriminate against transgender people.

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Fox News broke the news in New York, United States on Tuesday, January 13, 2026.
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