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yesterday

U.S. Ends Federal Medicaid and CHIP Funding for Most Gender‑Affirming Care for Minors

HHS says gaps in evidence and safety concerns justify the change and the rule shifts payment and access decisions to states and families while preserving federal coverage for psychotherapy.

Medicare and Medicaid Administrator Mehmet Oz, right, speaks with U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. during a roundtable discussion on rural healthcare investments on Jan. 16, 2026, in the East Room of the White House.
In an interview with The National News Desk, HHS Assistant Secretary for Health Admiral Brian Christin said next steps after the report include referrals for further review. (Courtesy of JD Vance on X)
A "Make America Healthy Again" banner and decorations celebrating the 250th anniversary of U.S. independence hang from the Humphrey Building, where the U.S. Department of Health and Human Services office is located, in Washington, D.C., U.S., July 21, 2026. REUTERS/Kylie Cooper/File Photo
Demonstrators gather for a rally in support of trans youth at Seattle Children's hospital, following U.S. President Donald Trump's executive order that denies federal funding for pediatric gender-affirming care, in Seattle, Washington, U.S. February 8, 2025. REUTERS/David Ryder

Overview

  • The rule, finalized Tuesday, was published by HHS/CMS and will take effect Oct. 13, 2026, removing federal Medicaid reimbursement for puberty blockers, cross‑sex hormones and most surgeries for minors while allowing states to pay with their own funds.
  • Children already receiving hormone therapy will get up to six months of federally funded coverage to permit a clinical tapering process as the agency added after public comment.
  • CMS cites a 2025 HHS review and international analyses to justify the policy and projects roughly $235 million in combined Medicaid and CHIP savings over the next decade.
  • Major U.S. medical associations and LGBTQ advocates sharply oppose the rule and legal challenges and lawsuits from states and advocacy groups are expected to begin shortly.
  • The policy narrows a previously broader enforcement plan that would have threatened hospitals’ Medicare or Medicaid participation and is likely to shift care access, travel burdens, and fiscal costs onto low‑income families and state budgets.