Trump order forces states to discriminate against transgender people to get certain federal funds, suit says

New York Attorney General Letitia James has joined attorneys general from 11 other states in suing the U.S. Department of Health and Human Services, saying billions in federal funding is available only if states agree to follow an executive order that discriminates against transgender people.

The lawsuit challenges how federal funding is tied to President Donald Trump’s executive order on "Defending Women from Gender Ideology." The administration has threatened to withhold funding since Oct. 1, under Title IX, to hospitals, public health agencies, universities and state agencies, unless states identify two sexes and exclude transgender as an option.

The federal agency under Secretary Robert F. Kennedy Jr. has also said they may pursue civil or criminal penalties or demand repayment of federal funding from entities that don’t follow the order, according to the lawsuit. In New York, the order puts $80 billion in funding at risk, James said.

Joining the lawsuit were attorneys general from Washington, Colorado, California, Oregon, Delaware, Illinois, Michigan, Minnesota, Nevada, Rhode Island and Vermont.

"The federal government is trying to force states to choose between their values and the vital funding their residents depend on," James said in a statement. "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."

A press secretary for HHS responded to the lawsuit Tuesday by pointing to a December initiative for hospitals to end gender-affirming surgery or transgender care medication for minors under the age of 18 under Medicare and Medicaid. The initiative was aimed at cutting off federal funding for organizations that provide transgender care for minors, noting that "nearly all U.S. hospitals participate in Medicare and Medicaid."

Trump’s original Jan. 28 executive order said, "It is the policy of the United States that it will not fund, sponsor, promote, assist, or support the so-called "transition" of a child from one sex to another, and it will rigorously enforce all laws that prohibit or limit these destructive and life-altering procedures."

In the lawsuit, state leaders argued the federal agency did not have authority to tie the funding or federal grants to the new policy under the executive order.

The lawsuit claims the funding policy is unconstitutional without Congressional approval and also violates federal law by adding conditions without notice or further explanation and contradicts state laws against discrimination.

"The New York Human Rights Law prohibits discrimination based on gender identity or expression, and the State Education Law expressly forbids educational institutions from excluding or discriminating against individuals on that basis," the attorney general's office said.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.