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Trump Administration Moves to End Medicaid Coverage of Gender-Transition Care for Minors

CMS Administrator Dr. Mehmet Oz announced Medicaid and CHIP will no longer pay for puberty blockers, hormones or surgeries for transgender minors, a directive from President Trump that advocacy groups say will trigger an immediate legal fight.

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BY OBSERVER STAFF

The Weekly Observer

AUG 12, 2026 · 2 MIN READ
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Trump Administration Moves to End Medicaid Coverage of Gender-Transition Care for Minors
Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services. (Official CMS photo, public domain)

The Trump administration moved Tuesday to strip Medicaid funding for gender-transition care for transgender minors, directing the Centers for Medicare & Medicaid Services to stop reimbursing puberty blockers, cross-sex hormones and surgical procedures for anyone under 18.

CMS Administrator Dr. Mehmet Oz announced the rule change at President Trump's direction, according to Fox News, ending the use of federal Medicaid and Children's Health Insurance Program dollars for gender-affirming care for children and adolescents. The change targets all three major treatment categories used in gender-affirming pediatric care: puberty-blocking medication, hormone therapy, and surgical operations.

A Growing Legal Fight

The announcement is the latest in a series of administration actions targeting transgender health care for minors, following restrictions on federally funded research and earlier limits on gender-affirming treatment at military hospitals. Local outlets covering the CMS rule reported it was issued Tuesday evening and applies nationwide to state Medicaid programs that receive federal matching funds.

Advocacy groups signaled they intend to challenge the rule in court. Josh Rovenger, legal director at GLBTQ Legal Advocates & Defenders, said the change is putting up barriers between parents and their ability to make the best medical decisions for their children, and the organization is expected to pursue litigation alongside other LGBTQ legal groups that have successfully blocked similar state-level restrictions in the past.

IS PUTTING UP BARRIERS BETWEEN PARENTS AND THEIR ABILITY TO MAKE THE BEST MEDICAL DECISIONS FOR THEIR CHILDREN.

Supporters of the rule, including Oz and other administration health officials, have argued that the treatments carry irreversible risks for minors and should not be subsidized by taxpayer-funded insurance programs. Major medical groups, including the American Academy of Pediatrics, have historically supported access to gender-affirming care under individualized clinical guidelines, setting up a continued clash between federal policy and mainstream medical associations.

The rule is expected to face immediate pushback in states that have codified Medicaid coverage for gender-affirming care independent of federal guidance, and legal challenges are likely to seek an injunction before the policy takes effect. It lands one day after the administration signed a separate order scaling back the list of vaccines recommended for children, part of a broader push this month to reshape federal health policy for minors.

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