Federal workers start new year off by suing Trump over end of taxpayer-funded sex changes

The Human Rights Campaign Foundation (HRC) filed a class action lawsuit Thursday on behalf of federal workers over the government’s ending of insurance coverage for sex change hormones and procedures.

The Office of Personnel Management (OPM) in August sent a letter to insurance companies notifying them that “chemical and surgical modification of an individual’s sex traits through medical interventions (to include ‘gender transition’ services) will no longer be covered” in 2026 under federal employee health plans, with the exception of counseling services and those who are “mid-treatment.” The federal workers are basing their “discrimination” complaint on the allegation that ending the policy is “denial of care” that’s “discriminatory on the basis of sex.”

“Starting today, untold numbers of federal employees and their families will be left out to dry at the hands of a shameless administration hell-bent on targeting the transgender community,” HRC Foundation President Kelley Robinson insisted. “This policy is not about cost or care – it is about driving transgender people and people with transgender spouses, children, and dependents out of the federal workforce.”

“That is discrimination, plain and simple, and the HRC Foundation refuses to let it stand without a fight,” Robinson wrote.

HRC emphasized their argument that transgender medical treatments are “medically necessary” and “supported by every major medical and mental health organization as best-practice medicine.” The group also states that coverage was often used by workers for their dependents.

One federal employee that is part of the lawsuit plainly stated the coverage was necessary for the worker’s daughter to receive a puberty blocker implant and eventually, “Hormone Replacement Therapy.”

In June 2025, the Supreme Court allowed Tennessee to uphold its law banning transgender procedures for minors, and several more states have since issued their own restrictions. Even many countries, including the United Kingdom, have indefinitely banned the use of puberty-blocking drugs for minors after recommendations from experts that warned of an “unacceptable safety risk.”

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