Federal Judge Halts Biden Administration's Transgender Nondiscrimination Rule

A federal judge temporarily stopped parts of a rule preventing discrimination against transgender individuals, which would have gone into effect under the Affordable Care Act. The injunction is a setback for the Biden administration’s efforts to expand anti-discrimination protections, citing financial burdens argued by Republican attorneys general.

A federal district court judge on Wednesday temporarily halted parts of a nondiscrimination rule that would have prevented insurers and medical professionals from denying hormone therapy, gender transition surgeries, and similar medical care for transgender individuals. US District Judge Louis Guirola Jr. ruled in favor of 15 states that argued the rule was based on the 1972 Title IX nondiscrimination law, which covers biological sex but not gender identity. Guirola's nationwide injunction affects the Affordable Care Act rule, scheduled to take effect Friday. This marks another setback for the Biden administration's push to expand anti-discrimination protections.

In recent weeks, three federal judges have halted a rule in several states aimed at protecting LGBTQ+ students by redefining sexual harassment in schools and colleges under Title IX. Health care protections based on gender identity were introduced during the Obama administration and later removed by former President Donald Trump. Earlier this year, the Department of Health and Human Services broadened the scope of the Affordable Care Act rule to include discrimination based on sex stereotypes, sexual orientation, gender identity, and sex characteristics. However, Republican attorneys general from Tennessee and other states argued they would face financial burdens complying with the new rule under Medicaid or other federal health programs, or risk losing federal funding if they did not comply.

During testimony, an attorney for the Mississippi Division of Medicaid said the agency is barred from covering gender transition procedures for children under 18, and the state's Medicaid and Children's Health Insurance Program do not cover operative procedures to treat a mental condition. Mississippi Gov. Tate Reeves accused the Biden administration of undermining Title IX by extending its scope to gender identity, expressing gratitude for the ruling in favor of Mississippi and other states defending the original interpretation of Title IX. Both the US Department of Health and Human Services and the Office for Civil Rights declined to comment on the ongoing litigation, as did Tennessee Gov. Bill Lee's office.

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