Trump Administration Finalizes Cuts to Medicaid Funding for Transgender Youth Care

The Trump administration finalized a plan on August 11, 2026, to eliminate federal Medicaid funding for hormone therapy, puberty blockers, and surgeries for transgender youths. This rule is part of the administration's broader efforts to limit transition-related care. States may still utilize their own funds to cover gender-affirming care for youth under Medicaid or the Children's Health Insurance Program (CHIP). The Centers for Medicare and Medicaid Services' rule does not affect federal funding for psychotherapy related to gender dysphoria. Starting October 13, states will no longer be able to claim federal Medicaid funding for gender-affirming health services, which the administration refers to as 'sex-rejecting procedures.' There will be a six-month period allowing states to continue receiving funding for beneficiaries undergoing gender-affirming hormone therapies. Seventeen states currently provide some level of gender-affirming care for children under Medicaid and CHIP. The administration stated that the policy aims to protect children from procedures they deem harmful. The rule cites a 2025 HHS report indicating weak evidence for pediatric gender-affirming medical interventions, which has been contested by the American Academy of Pediatrics and other medical groups. Major medical organizations assert that transition-related care for children with gender dysphoria is safe and appropriate. LGBTQ+ advocates have criticized the policy as a significant restriction on physician-prescribed care. Additionally, the administration reportedly shelved a separate plan to cut off Medicare funding to hospitals providing transition-related care.