New York, 20 other states sue Trump administration for blocking Medicaid and CHIP funding for youth gender-affirming care

New York joined nearly two dozen states in filing a new lawsuit against the Trump administration in response to the White House's recent rule blocking states from receiving Medicaid and the Children's Health Insurance Program (CHIP) funding for gender-affirming care for youth. The lawsuit, which was filed by attorneys general from 21 states as well as Pennsylvania Gov. Josh Shapiro, makes the case that the Centers for Medicare & Medicaid Services (CMS) overstepped its power by banning the federal government from reimbursing for care covered by states. “The federal government does not have the authority to dictate what medically necessary care New York provides to its residents,” said New York Attorney General Letitia James, who is leading the empire state in the lawsuit. “This unlawful rule threatens access to health care for transgender young people and undermines states’ ability to administer our own Medicaid programs. New York will continue to stand up for patients and defend our authority to provide the care they need.” The policy at issue, which was finalized in recent weeks, was first proposed last December under Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr, who voiced false rhetoric about gender-affirming care in his justification for the policy, labeling it as "unsafe" and "irreversible." An HHS document last month noted that under the policy, state Medicaid and CHIP agencies can continue to claim federal financial participation for individuals who benefit from Medicaid or CHIP and are “actively receiving cross-sex hormone therapy” for up to six months after the rule goes into effect. The rule is the latest example of the president's longstanding effort to restrict the healthcare of trans youth, particularly in his second term. On the first day of his second term, Trump signed an executive order seeking to ban the federal government from using funds for gender-affirming care for individuals under the age of 19. The executive order also directed the HHS secretary to “take all appropriate actions to end” gender-affirming care, “including regulatory and sub-regulatory actions.” The latest lawsuit makes the case that Congress never extended such authority to CMS to impose the policy, which the attorneys general say will bring about new costs for state Medicaid programs. In addition to New York, other states on the lawsuit are California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Michigan, Minnesota, Maryland, Massachusetts, Nevada, New Jersey, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin. The District of Columbia also joined the suit.