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Federal government announces end to funding for youth gender affirming care

A sign reads, "Care for trans kids; it's California law!" at a protest supporting transgender youth in Palo Alto, Calif. on July 14, 2025.
Desmond Meagley
/
KALW
A sign reads, "Care for trans kids; it's California law!" at a protest supporting transgender youth in Palo Alto, Calif. on July 14, 2025.

The federal government is ending coverage of gender-affirming healthcare for minors through public insurance.

Medicaid and the Children's Health Insurance Program, or CHIP, announced yesterday they would no longer fund treatments like hormone replacement therapy and puberty blockers for youth.

But that won’t necessarily affect Californians, where state law requires healthcare providers to offer gender affirming medical treatment…

The state’s current budget includes $26 million dollars to pay providers for transition-related care, including for youth, and an additional $30 million to make up for other federal healthcare cuts since 2024.

Dannie Ceseña is the director of the state LGBTQ Health and Human Services Network. He says these one-time allocations will help families avoid paying out of pocket for care for now.

"We know that there's more attacks is coming," said Ceseña, "so we are already working closely with the caucus, identifying where the gaps in coverage may be, and preparing additional budget asks."

Medicaid did not disclose the total amount of funding it’s withholding. The change will not affect funding for mental healthcare, such as talk therapy.

The change takes effect October 13.

CHIP and Medicaid did not respond to KALW’s request for comment in time for broadcast.

Desmond Bracken (any/all) is a multimedia producer, editor and graphic designer from the East Bay. Their award-winning coverage has appeared on CalMatters, Teen Vogue, NPR, The SF Chronicle and more.