New Rule Prohibits Federal Medicaid Reimbursement for Transgender Youth Care

The Trump Administration is threatening life saving healthcare for vulnerable trans children by publishing a rule on August 11, 2026, that prohibits federal Medicaid funds from being used to provide medically necessary care to transgender youth under age 18 (and Children’s Health Insurance Program [CHIP] funds under age 19). We stand with the parents and families facing attacks on their health care by the Trump administration.

We urge health care providers and hospitals to continue to fulfill their duties and obligations to protect the health of all patients. This is a wake up call for states to take aggressive actions to protect essential medical care and push back on this unprecedented federal overreach.

What The Rule Does:

• Prohibits the use of federal Medicaid funds to cover puberty blockers, hormones, or surgeries.

• Does not prohibit this care from being covered with state-only Medicaid funds or private insurance. 

• Does not prohibit the use of federal funding for supportive mental health care.

• Provides a 6-month “tapering” period for transgender youth currently receiving hormone therapy. This tapering period does not apply to puberty blockers.

• Will go into effect on October 13, 2026.

The Facts About Healthcare For Trans Kids: 

• Medicaid is a lifeline for millions of children and their families around the country. 

• Decades of research show that care for transgender youth is safe, effective, and beneficial, and every major U.S. medical and mental health association in the U.S. supports access to essential medical care for transgender youth.

• Health care should be based on science, medical expertise, and the needs of children and families. 

• Medical decisions belong to parents, families, and doctors, not to politicians.  

• All children should be happy and healthy. Like all other parents, the parents of transgender youth should have the freedom to get their child the care they need to stay healthy. 

• The Trump administration has repeatedly put politics above families and thrown science under the bus to advance its baseless theories.

What The Rule Changes, What It Doesn’t:

• It does not change the legality of providing care for transgender youth.

• The administration has not finalized the proposed rule that would amend the Conditions of Participation (COPs) to prohibit hospitals that receive Medicare and Medicaid funds from providing care to transgender youth under age 19. 

• State Medicaid funds can be used for this care.

• The U.S. Supreme Court’s June 2025 Skrmetti decision leaves decisions about health care for transgender youth to states and places no new legal limitations on care in states that do not have them. 

• The administration’s threats to terminate funding for health care organizations that provide this care are currently blocked by the courts.

For more information on this issue: 

• National Center for LGBTQ Rights: nclrights.org/ 

• GLAD LAW: gladlaw.org/ 

• Movement Advancement Project: mapresearch.org

For support for South Asian families: 

• Speak to a Desi Rainbow Saathi: www.desirainbow.org/saathi 

• Join the monthly Desi Rainbow Parents and Family Support Groups: www.desirainbow.org/family-info

Take Action: 

• Join an advocacy training for Desi families of trans children on August 20th: tinyurl.com/DesiRainbowSpeakUp. You will learn how to contact your elected officials and advocate for trans chidlren and adults.

• Receive our advocacy alerts: Desi Rainbow Trans Ally Pledge: tinyurl.com/DRPATransAlly 

• Submit your story about the impact on your family: tinyurl.com/DesiStoryshare 

• Become a member of Desi Rainbow: www.desirainbow.org/membership 

• Support Desi Rainbow’s work with a donation: www.desirainbow.org/donate