New York Attorney General Letitia James is leading a coalition of 11 attorneys general in a lawsuit against the U.S. Department of Health and Human Services, alleging that the agency is unlawfully conditioning federal funding on states’ agreement to discriminate against transgender people.
The lawsuit challenges a new HHS policy that requires recipients of federal health, education and research funding to certify compliance with a presidential executive order that redefines sex in a way that excludes transgender people. Under the policy, HHS can terminate grants, demand repayment of funds already spent, or pursue civil or criminal penalties against states or institutions it determines are not in compliance.
“The federal government is trying to force states to choose between their values and the vital funding their residents depend on,” James said in a statement. “This policy threatens health care for families, life-saving research, and education programs that help young people thrive in favor of denying the dignity and existence of transgender people. New York will not abandon our values, our laws, and above all, our residents.”
Attorney General James and the coalition argue that HHS lacks the authority to impose these conditions and is using federal funding to coerce states into violating their own anti-discrimination laws. They are asking the court to invalidate the funding conditions and prevent HHS from enforcing them.
The policy applies broadly to states, public universities, hospitals, health agencies and other recipients of federal funds. HHS has made certification a requirement for both new and existing grants, placing ongoing programs at immediate risk. The agency has also failed to clearly define what compliance entails, leaving states and institutions uncertain about which policies or actions could jeopardize their funding.
According to the lawsuit, the policy could have wide-ranging consequences for health care and social services. In New York alone, more than $80 billion in federal grant funding is at risk. These funds support essential programs, including immunizations, maternal and infant health services, HIV prevention and treatment, mental health and substance use programs, medical and public health research.
The attorneys general contend that HHS is unlawfully attempting to rewrite Title IX through executive action and agency policy. The lawsuit alleges violations of the U.S. Constitution by infringing on Congress’s spending authority, violations of federal law by imposing vague and retroactive funding conditions, and violations of the Administrative Procedure Act by implementing a major policy change without proper notice or justification. The policy also conflicts with longstanding court decisions and federal guidance, which recognize that Title IX protections extend to individuals with gender identity.
The coalition further argues that the executive order and HHS policy conflict with state laws that protect transgender people. In New York, constitutional and statutory protections prohibit discrimination based on gender identity or expression, including in education and public accommodations.
The lawsuit asks the court to declare the policy unlawful and block its enforcement, allowing states to continue providing health care, education and other essential services without being required to discriminate.
Joining New York in the lawsuit are the attorneys general of California, Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Oregon, Rhode Island, Vermont and Washington.
