US bars federal funding of gender-affirming care for low-income minors
The rule effective in October, cuts off funding under Medicaid and the Children's Health Insurance Program (CHIP), which together cover 35.5 million US children.
On Tuesday, the Trump administration finalized a rule prohibiting Medicaid and the Children's Health Insurance Program (CHIP) from funding gender-affirming care for minors. This includes puberty blockers, hormone therapy, and surgeries to treat gender dysphoria, affecting roughly 35.5 million low-income US children covered by these programs.
The rule, set to take effect in October, cites weak evidence of benefit and the risks of irreversible harm. It marks one of the administration's most restrictive actions on transgender healthcare, part of a broader crackdown on transgender rights across various sectors. The Centers for Medicare and Medicaid Services (CMS) Administrator, Dr. Mehmet Oz, defended the move, stating it aligns with scientific consensus, saves taxpayer money, and protects children from potential harm.
The rule does not ban gender-affirming procedures but removes federal support, shifting the financial responsibility to states, families, and private insurers. The American Academy of Pediatrics and the American Medical Association support such care and oppose restrictions. CMS argues that the 1965 Medicaid statute authorizes it to cut funding in the beneficiaries' best interests, a novel use of the provision that opponents claim exceeds its authority.
Over 90% of public comments opposed the rule, despite the finalization. The rule sets up a conflict with 14 states and the District of Columbia that have passed shield laws protecting gender-related care, forcing them to either drop coverage or pay for it themselves. The rule is projected to cut combined Medicaid and CHIP spending by about $235 million over a decade, with $138 million in federal savings and $97 million in state savings, reflecting the potential savings if governments ceased coverage.
State governments would bear the full cost if they choose not to continue coverage. Children currently on hormone therapy through Medicaid or CHIP will receive six months of continued coverage to taper off, introduced after concerns that abruptly stopping treatment could cause harm.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
