Medicaid will stop paying for some gender-affirming care for transgender minors

The Trump administration has finalized a plan to cut off federal Medicaid funding for hormone therapy, puberty blockers, and surgeries for transgender youths. This move is part of a broader effort to limit transition-related care. According to Axios, states will not be able to claim federal Medicaid funding for gender-affirming health services starting October 13, although they can still use their own funds to cover these treatments.

The new rule, announced by the Centers for Medicare and Medicaid Services, does not affect federal funding for psychotherapy related to gender dysphoria. States that currently cover some degree of gender-affirming care for children under Medicaid and the Children's Health Insurance Program (CHIP) will have a six-month period to adjust, during which they can continue to receive funding for beneficiaries taking gender-affirming hormone therapies. Seventeen states currently provide such coverage.

The administration cites a 2025 HHS report, as reported by Axios, which found weak evidence for pediatric gender-affirming medical interventions, as justification for the policy, stating it aims to "help protect these children" from what they see as harmful procedures. Federal dollars in Medicaid and CHIP will not be used for gender-affirming care, but states can still choose to cover these treatments.

Brief written by urgent.news from STAT News, Axios, CNBC — 3 reports on this story. Machine-written — it may contain errors, so check the original before relying on it.