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Tuesday, Jul 01, 2025

Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors

The potential regulatory changes follow a missed deadline for hospitals to submit data on gender-affirming procedures.
The Trump administration is contemplating the withdrawal of federal funding from hospitals alleged to be providing gender-affirming treatments to minors, a move that could increase federal oversight of such programs.

This consideration follows a 30-day deadline imposed by Dr. Mehmet Oz, head of the Centers for Medicare & Medicaid Services (CMS), for nine children's hospitals to respond to requests for data on gender-affirming surgeries and hormone treatments.

Dr. Oz stated, "President Trump was clear: America will protect children from experimental and life-altering procedures." The CMS had previously warned hospitals of potential dangers associated with these treatments and is now taking steps towards regulatory enforcement.

Reports indicate that three of the hospitals, located in Boston, Los Angeles, and Seattle, indicated they would respond to the CMS request; however, none provided the requested data within the deadline.

Hospitals in Colorado and Ohio also expressed intentions to reply.

Though Dr. Oz's correspondence did not specify explicit threats or particular regulatory actions, CMS officials claimed they possess the authority to halt funding for gender-affirming treatments for minors through Medicaid and private insurance.

The agency is reviewing its ability to completely exclude from Medicaid those hospitals that do not comply with federal guidelines and continue to perform such surgeries.

Alan Kahn, Vice President of the Human Rights Campaign, emphasized the importance of medical decisions being made by healthcare professionals and families rather than politicians.

He indicated that research consistently shows gender-affirming care reduces depression, anxiety, and suicide risk among transgender youth.

He stated, "CMS should protect public health, not use it as a political tool."

A substantial portion of funding for many children's hospitals comes from Medicaid, with CMS setting the standards that must be met to receive that funding.

For instance, one of the hospitals that received the CMS letter, the Children’s Hospital Los Angeles, announced the closure of its gender treatment program for children, citing the CMS inquiry as the reason for this decision.

The hospital explicitly noted that over 65% of its annual revenues come from federal sources, leaving them with little choice but to comply.

In January, President Trump issued an executive order ceasing federal funding for any gender transition treatment for individuals under 19, including hormones and surgeries, characterizing these treatments as "child mutilation" and describing them as "chemically or surgically invasive with irreversible harm."

In April, Attorney General Pam Bondi issued a memorandum encouraging the Department of Justice to initiate criminal or civil investigations against hospitals and doctors providing such treatments.

Earlier this month, the U.S. Supreme Court ruled that states could restrict such procedures for minors, further reinforcing the Trump administration's agenda for federal restrictions.

Currently, 27 states in the U.S. have enacted laws and/or regulations limiting gender-affirming treatments for youth, according to independent research organization KFF, which focuses on public health policy.
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