Twelve Democratic attorneys general sued to block HHS from conditioning grants on compliance with provisions tied to a Trump executive order that narrows recognition of transgender people. The states say HHS, under Health Secretary Robert F. Kennedy Jr., has imposed conditions they view as retroactive and that could lead to terminated grants, repayment demands and legal penalties. The suit argues HHS lacks authority to import the executive order into Title IX and has failed to provide a reasoned explanation for its reinterpretation.
12 Democratic Attorneys General Sue to Block HHS Grant Conditions They Say Target Transgender People
U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. announces new nutrition policies during a press conference at the Department of Health and Human Services in Washington, D.C., U.S., January 8, 2026. REUTERS/Jonathan Ernst
Twelve Democratic state attorneys general filed a federal lawsuit on Tuesday seeking to stop the U.S. Department of Health and Human Services (HHS) from conditioning what they describe as "hundreds of billions" of dollars in grants on new requirements that they say would effectively force discrimination against transgender people.
The complaint, brought by attorneys general from states including New York and California, challenges conditions HHS agencies attached to grants after former President Donald Trump issued an executive order last year directing agencies to end funding of what he called "gender ideology." The suit was filed in federal court in Providence, Rhode Island.
Trump's order directed the federal government to recognize only two sexes — male and female — and sought to narrow the application of laws that prohibit sex discrimination, arguing those laws had been "misapplied" to extend protections to transgender people during the administration of President Joe Biden.
The states contend HHS has applied the new policy retroactively rather than limiting it to future grants, exposing recipients — including states, hospitals and universities — to potential grant terminations, demands for repayment, and civil and criminal penalties.
"This policy threatens healthcare for families, life-saving research, and education programs that help young people thrive in favor of denying the dignity and existence of transgender people," said New York Attorney General Letitia James, a Democrat who is leading the lawsuit.
The complaint alleges that, under Health Secretary Robert F. Kennedy Jr., HHS has attempted to fold Trump's executive order into the application of Title IX — the landmark civil rights law that bars sex discrimination in federally funded education programs — by imposing grant conditions that require recipients to certify compliance with Title IX as interpreted to "include the requirements" of the executive order.
Agencies that have adopted or proposed the funding condition in recent months include the Centers for Medicare & Medicaid Services (CMS) and the National Institutes of Health (NIH). The lawsuit argues that HHS lacks statutory authority to impose those conditions, that the agency has infringed on Congress's exclusive power over federal spending, and that HHS failed to provide a reasoned explanation for its changed interpretation of Title IX.
Besides New York and California, the lawsuit was joined by the attorneys general of Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Oregon, Rhode Island, Vermont and Washington.
The Department of Health and Human Services did not immediately respond to a request for comment. The case is expected to focus on statutory authority, constitutional spending power, and whether the agency's action—particularly any retroactive application—violates long-standing administrative law principles.
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