On January 13, 2026, New York Attorney General Letitia James, California Attorney General Rob Bonta, and Oregon Attorney General Dan Rayfield led a coalition of 12 state attorneys general in filing suit against the 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’s sweeping policy requires states, public universities, health agencies, hospitals, and other recipients of federal funds to certify compliance with Title IX protections, which it characterizes as “including the requirements” of the president’s executive order redefining sex in a way that excludes transgender people. HHS has made this certification a condition of funding across the agency and has warned that recipients could face termination of grants, requirements to repay funds, and even civil or criminal liability if they are found to be out of compliance. The policy applies not only to new grants, but also to existing funding, placing ongoing programs at immediate risk. HHS also has failed to clearly explain what compliance requires. 

The attorneys general argue HHS lacks the authority to impose these conditions and is unlawfully attempting to rewrite Title IX through executive action and agency policy. The lawsuit alleges that the policy violates the Administrative Procedure Act by imposing a major policy change without notice or explanation, breaks federal law by attaching vague and retroactive conditions to funding, and violates the U.S. Constitution by overriding Congress’ power of the purse.

The coalition also emphasizes that Trump’s discriminatory executive order conflicts with laws in many states that protect the rights of transgender individuals. The coalition is asking the court to declare the funding conditions unlawful and block HHS from enforcing them, thereby allowing states to continue providing health care, education, and other essential services without being forced to discriminate.

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. Attorney General Letitia James