AG James leads coalition of 12 AGs suing HHS for threatening to withhold billions from states that refuse to discriminate against transgender people
Published Date: Jan 13, 2026
- Categories
- Lead States
- Action Type Lawsuit
AG James today led a coalition of 11 other attorneys general in suing the U.S. Department of Health and Human Services (HHS) for unlawfully conditioning hundreds of billions of dollars in federal funding on states’ agreement to discriminate against transgender people. Under a new HHS policy, recipients of federal health, education, and research funding must certify compliance with a presidential executive order that seeks to deny the existence of transgender people and impose rigid, unscientific definitions of sex. HHS threatens to terminate grants, demand repayment of funds already spent, or pursue civil or criminal penalties against any state or institution it deems to be non-compliant. Attorney General James and the coalition argue that HHS has no authority to impose these conditions and is illegally using federal funding to coerce states into discriminating against their residents, in violation of state laws protecting transgender people from discrimination. They are asking the court to step in and strike down the unlawful funding conditions.
“The federal government is trying to force states to choose between their values and the vital funding their residents depend on. 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. My office is suing to block this cruel and unjust directive.” – AG James