Letitia James
New York State is joining 11 other states in suing the federal government for making it a condition that States discriminate against transgender people in order to receive hundreds of billions of dollars in grants
State Attorney General Letitia James said, under a new U.S. Department of Health and Human Services (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. The 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.
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, repayment of 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. At the same time, HHS has failed to clearly explain what compliance requires, leaving states, universities, hospitals, and health care providers uncertain about which actions or policies could jeopardize their funding.
Attorney General James and the coalition argue that this policy will have far-reaching and potentially dangerous consequences across a vast spectrum of health care and social services. In New York, over $80 billion in grant funding is at risk due to these conditions. These funds help cover the costs of critical health services, support cutting-edge research, and ensure that vulnerable communities can access essential care. HHS grants also fund immunization programs, maternal and infant health services, HIV prevention and treatment, substance use and mental health programs, among many other initiatives.
The attorneys general argue that 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 U.S. Constitution by overriding Congress’ power of the purse, breaks federal law by attaching vague and retroactive conditions to funding, and violates the Administrative Procedure Act by imposing a major policy change without notice or explanation. The policy also contradicts decades of court opinions and settled federal guidance recognizing that Title IX protects people from discrimination based on gender identity.
Attorney General James and the coalition also emphasize that the president’s discriminatory executive order conflicts with laws in many states, including New York, that protect the rights of transgender individuals. New York’s constitution protects the right of New Yorkers to express their gender identity free from 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 coalition is asking the court to declare the policy unlawful and block HHS from enforcing it, allowing states to continue providing health care, education, and other essential services without being forced to discriminate.
Joining Attorney General James in filing the lawsuit are the attorneys general of California, Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Oregon, Rhode Island, Vermont, and Washington.
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