First the One Big Beautiful Bill Act (OBBBA) signed into law last month will affect millions of Americans with cuts over $1 trillion in federal healthcare funding. This will significantly restructures Medicaid eligibility, scale back the Affordable Care Act (ACA) marketplace support placing new restrictions on Medicare & alters coverage. Now the current administration released a rule that will prohibit federal Medicaid dollars from being used to provide care to trans adolescents under 18 & federal Children’s Health Insurance Program (CHIP) funds from covering care for trans individuals under 19 if allowed to take effect. The rule takes effect October 13th 2026 & providers can continue to bill Medicaid & CHIP for youth already receiving gender-affirming care for up to 6 months after that. Josh Rovenger, GLAD Legal Director stated, “The federal government is putting up barriers between parents & their ability to make the best medical decisions for their children. That should be chilling to every American. With this rule, the Trump administration is once again holding vital health care funding hostage – pressuring states & providers to fall in line with its political agenda, not sound medicine. Families of transgender children want what every family wants: for their kids to be happy, healthy & able to get the care they need. Nothing in this rule changes the fact that transgender health care is established medicine, backed by decades of research & legal & protected in many states. Providers do not need to change how they deliver this care. States can & should step up to ensure funding & infrastructure keep it accessible. This rule is cruel, it’s wrong & it will not stand up to legal scrutiny.”
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