On September 2, twenty-two states and the District of Columbia went to federal court in Massachusetts to stop the rule that ends Medicaid and CHIP payment for gender-transition procedures on minors. The case is Civil Action No. 26-cv-14051, filed against the Department of Health and Human Services and the Centers for Medicare & Medicaid Services.
Their argument is that CMS exceeded its statutory authority, violated the Administrative Procedure Act and the Spending Clause, and conflicts with Medicaid's own requirements. Read that again: nearly half the states are in court fighting for the right to bill taxpayers for blockers, hormones and surgeries on kids.
Nothing has been blocked. No injunction has been issued and no court has ruled on the merits. The rule (CMS-2451-F) is still scheduled to take effect October 13, 2026.