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Trump administration bars Medicaid, CHIP funding for gender-affirming care for minors

The Trump administration finalized a rule barring federal Medicaid and CHIP dollars from covering gender-affirming care for children and youth, citing safety concerns and evidence gaps.

Trump administration bars Medicaid, CHIP funding for gender-affirming care for minors

The Trump administration on Tuesday said it is implementing a rule that would end the use of federal Medicaid and Children’s Health Insurance Program (CHIP) funding for gender-affirming care for children and youth, a move that aligns with a broader Republican push to restrict such treatments ahead of the November midterm elections.

The rule, which takes effect Oct. 13, would bar federal dollars in the two federal-state healthcare programs from going toward puberty blockers, hormones and surgical operations for minors. State funds could still be used to cover those treatments, according to the administration’s announcement.

The Centers for Medicare and Medicaid Services (CMS) said the decision follows a review of national and international research by the Department of Health and Human Services (HHS). That review identified what the agencies called “significant evidence gaps, documented serious safety concerns, and concluded that the evidence supporting these interventions for children remains insufficient to justify federal taxpayer funding.” The specific details of those findings were not made public.

Gender-affirming care — which includes mental and medical treatments that help align a person’s gender expression, such as voice or appearance, with their gender identity — is supported by major medical organizations as safe and effective when following clinical guidelines, and is generally well-received by patients. Studies have shown that access to such care can improve mental health outcomes, including when started in youth, according to the National Alliance on Mental Illness (NAMI). The group said denying gender-affirming care can worsen mental health symptoms and increase suicide risk.

The rule does not affect federal coverage of mental health services for children, a notable carve-out given the ongoing debate over the psychological impact of gender-affirming treatments.

Political context and state restrictions

The move comes as Republicans across the U.S. have sought to restrict healthcare and legal protections for transgender people, with many GOP lawmakers using anti-trans rhetoric as a political weapon against Democrats, particularly with the midterm elections approaching in November.

Already, 27 states have enacted restrictions on gender-affirming care for children, according to health policy organization KFF.

President Donald Trump promoted the policy change on Truth Social on Tuesday, explicitly tying it to his party’s efforts to retain control of Congress this year. “Please remember this when you are casting your vote in the Midterm Elections in November,” he wrote in the post.

The administration’s rule is the latest in a series of federal actions targeting transgender rights, following earlier efforts to restrict military service by transgender individuals and to limit federal recognition of gender identity. Critics have argued that the rule could deny medically necessary care to a vulnerable population, while supporters say it reflects concerns about the evidence base for such interventions in minors.

Source: www.cnbc.com — https://www.cnbc.com/2026/08/11/trump-medicaid-chip-funding-gender-affirming-care-children.html

This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.

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