California health advocates respond to CMS decision to end federal funding for gender-affirming care for TGI youth
SACRAMENTO, CA – The California LGBTQ Health and Human Services Network and Health Access California released the following statement in response to the Centers for Medicare and Medicaid Services (CMS) finalized rule that cuts off Medicaid and Children’s Health Insurance Program (CHIP) funding for gender-affirming medical care for transgender young people, threatening access to medically necessary care.
“We vehemently condemn the recent CMS ruling that strips federal Medicaid and CHIP funding for gender-affirming care, including essential hormone therapies for transgender, gender-diverse, and intersex (TGI) youth. By deliberately severing access to medically necessary healthcare, this cruel decision will cause devastating physical and emotional harm to TGI youth and their families,” stated Dannie Ceseña, Director of the CA LGBTQ HHS Network. “This ruling is a dangerous attack rooted entirely in anti-trans rhetoric rather than science, blatantly ignoring the established medical consensus that supports gender-affirming care as safe and essential. We urge health providers and hospitals to continue to fulfill their duties and obligations to protect the health and well-being of all patients.”
This new decision does not change California law or prohibit providers from continuing to provide care. California prohibits healthcare providers and insurers from discriminating against or denying care to TGI people. However, the CMS decision will leave many low-income families at a standstill, creating a cascading set of challenges that extend far beyond coverage itself.
“Yet again, the Trump Administration is rejecting sound science, and using our trans youth to further their own political aims. Not only does this cruel attack put our trans youth and their families at extreme personal and financial risk, it strips money out of our health care at the exact moment millions are at risk of losing Medi-Cal due to the federal H.R. 1 cuts,” said Amanda McAllister-Wallner, Executive Director of Health Access California. “Families, doctors, and communities will now be forced into unimaginable choices both in where they can get their care, and how to pay for it. California has already made investments to bolster our trans youth, but as attacks continue we must do more to protect vital health care access for everyone who needs it.”
Under the new rule, the federal government will no longer contribute its share toward gender-affirming care. However, California has already taken steps to help address this gap, including a historic $26 million investment in the 2026-27 state budget to stabilize the provider network serving transgender Californians. Additionally, the continuation of a $30 million Uncompensated Care Fund to support providers when federal funding is unavailable, restricted, or prohibited will help fill these cuts. Yet as attacks continue, more investments will likely be needed.
As the cost of care shifts, providers may face increased uncertainty and fear about whether they can continue providing services, while families will be left navigating new barriers to care as they strive to support their child. For parents and caregivers already struggling to make ends meet, paying out of pocket for medically necessary care can mean having to choose between supporting their child and paying for rent, food, medications, transportation, and other basic needs. No family should have to make that choice.
These coercive tactics by the Trump administration are a shocking abuse of federal power. This is a wake-up call for states to take aggressive actions to protect essential medical care and push back on this unprecedented federal overreach. The federal government should be focused on ensuring every child has the opportunity to grow up healthy, safe, and supported. Instead, it is targeting a small population of transgender and gender diverse young people and making it harder for them to exist.
We stand with the parents and families facing these baseless attacks on their health care and remain committed to our advocacy so that every child can access the care and basic necessities they need to survive.