Trump's HHS abandons threat to withhold Medicare and Medicaid funding over trans care

The Trump administration has decided not to finalize a rule that would have withheld Medicare and Medicaid funding from hospitals providing pediatric gender-affirming care. Legal experts suggest the move was likely due to the rule's potential illegality regarding federal control over the practice of medicine.
Why it matters
This represents a significant shift in the administration's approach to healthcare policy and LGBTQ+ rights, signaling a potential limit to the use of federal funding as a tool for social policy enforcement.
The Trump administration is abandoning its most aggressive attempt to end gender-affirming care for youth nationally, according to an official document obtained by NPR.
The document shows that the Department of Health and Human Services will not be finalizing a proposed rule that would have blocked all Medicaid and Medicare funding for hospitals that provide pediatric gender-affirming care. The Centers for Medicare and Medicaid Services and the Department of Health and Human Services did not immediately respond to a request for comment.
The fact that the Trump administration is backing off from this action is "a victory for people who are defending the rights and interests of trans people," says Sam Bagenstos , a professor at Michigan Law who served as general counsel at HHS under the Biden administration. "But I don't think it indicates a more general retreat from the aggressive posture of the Trump administration."
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