Federal Rule Blocks Medicaid Funding for Transgender Minors' Care Even in States Where It Remains Legal

On August 11, 2026, the Trump administration finalized a rule barring Medicaid and CHIP from covering puberty blockers, hormones, and surgeries for transgender minors, effective October 12. The prohibition applies even in states where such care remains legal, cutting off federal matching funds. KFF estimates 130,000 transgender minors live in states where the care is still available.