Starting Tuesday, Taxpayers Stop Paying to Transition Kids. Even Democratic Virginia Is Complying.

Taxpayers should not fund sex-change procedures for minors. On Tuesday, Oct. 13, the rule takes effect. It ends federal Medicaid funding for sex-change procedures for children under 18 and federal CHIP funding for those under 19². Children already on cross-sex hormones get up to six months of federal funding to taper; counseling stays covered. CMS announced the final rule on Aug. 11¹; nine days later, CMS Administrator Dr. Mehmet Oz wrote, “Last week, CMS finalized a rule ending Medicaid funding for sex-rejecting procedures for minors.”³

The same post says CMS sent letters to the nine states that historically spent the most Medicaid dollars on these procedures. The letters went to California, Massachusetts, North Carolina, New Hampshire, New York, Ohio, Oregon, Pennsylvania and Washington³.

Virginia is complying. Steve Ford, director of the Department of Medical Assistance Services, told providers that DMAS will stop covering these services for Medicaid members under 18 and CHIP members under 19. The same bulletin says mental-health coverage stays in place without changes⁴.

“By cutting off federal funds for these sex-rejecting procedures, we’re following the science, saving taxpayer dollars, and, most importantly, protecting children from potentially irreversible harm so they can truly flourish.”

This is the right policy because children should not face potentially irreversible harms at taxpayer expense. CMS says puberty blockers, cross-sex hormones and surgeries can cause infertility, impaired sexual function, diminished bone density and altered brain development. According to the agency, an HHS review of the research found significant evidence gaps and serious safety concerns, and found the evidence insufficient to justify federal taxpayer funding. CMS also cites the United Kingdom's Cass Report and the countries and states that have restricted these procedures for minors¹.

Oz put it plainly: “By cutting off federal funds for these sex-rejecting procedures, we’re following the science, saving taxpayer dollars, and, most importantly, protecting children from potentially irreversible harm so they can truly flourish.”¹ If the evidence cannot justify the bill, why should any working family's taxes pay it?

1. Aug. 11CMS announced the final rule
2. Sept. 24Virginia DMAS issued its provider bulletin
3. Oct. 9MaineCare issued its provider notice
4. Oct. 13Federal funding cutoff takes effect

Maine shows where the fight goes next: the statehouse. In an Oct. 9 notice, MaineCare told providers that the federal rule does not stop states from covering these services with state-only funds. Maine officials point to a state law requiring MaineCare to cover medically necessary treatment for or related to gender dysphoria. The department told providers to put an SE modifier on non-behavioral-health claims. The modifier flags a service that must be reimbursed with state-only funds. The department will review medications covered by the federal rule under its own separately funded state-only benefit².

Every state owns its choice, and state policy determines whether taxpayers pay for these procedures.

The Advocate reports that Virginia Gov. Abigail Spanberger, a Democrat, accused the Trump administration of using transgender children as political pawns in remarks her spokesperson shared with the outlet. The Advocate reports that Spanberger said the funding pullback was not her administration’s choice and blamed the federal government for changing access to health care.

Her own Medicaid agency's Sept. 24 bulletin goes further than announcing the cutoff. It tells providers how to get service authorizations to taper affected medications⁴. The Advocate reports that Spanberger had not announced a plan to use state funds; she told reporters, “We are looking at every option available.” If this is not her choice, what options is she weighing?

Washington has answered. Parents and voters should ask their governor and legislature, before the next session, one question: Will you spend our money on sex-change procedures for minors? The answer must be no. Children deserve protection from irreversible harm, and families, not Medicaid billing codes, should be in charge.

Sources

1. CMS Ends Federal Medicaid and CHIP Funding for Sex-Rejecting Procedures for Children and Youth | CMS
2. MaineCare Coverage of Gender-Affirming Care for Medicaid Beneficiaries Under Age 18 and Children's Health Insurance Program (CHIP) Enrollees Under Age 19 | Department of Health and Human Services
3. @DrOzCMS on X, 2026-08-20: Last week, CMS finalized a rule ending Medicaid funding for sex-rejecting procedures for minors. This week, we sent letters to nine states that have historically spent the most Medicaid dollars on these procedures, asking them to clarify how and when they will im, 2026-08-20
4. Changes to Gender Dysphoria Coverage | MES