❓WHAT HAPPENED: The Human Rights Campaign Foundation (HRC) filed a class action lawsuit against the government over the decision to end insurance coverage for sex change hormones and procedures for federal employees.
👤WHO WAS INVOLVED: The Human Rights Campaign Foundation (HRCF), federal workers, and the Office of Personnel Management (OPM).
📍WHEN & WHERE: The lawsuit was filed on Thursday following an August 2025 OPM letter announcing the policy change, which takes effect in 2026.
💬KEY QUOTE: “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
🎯IMPACT: The lawsuit claims the policy is ‘discriminatory’ and will negatively affect federal employees and their families; however, the Trump administration maintains that only counseling and mid-treatment cases will continue to be covered.
The Human Rights Campaign Foundation (HRCF) has filed a class action lawsuit on behalf of federal employees and their families after the Office of Personnel Management (OPM) announced that federal health plans will stop covering gender transition–related hormones and surgeries beginning in 2026.
The policy change was outlined in an OPM letter issued in August, which instructed insurers to exclude coverage for “chemical and surgical modification of an individual’s sex traits through medical interventions (to include ‘gender transition’ services).” The guidance allows continued coverage for counseling and for patients already considered “mid-treatment.”
HRCF—the 501 (c) (3) nonprofit arm of the Human Rights Campaign (HRC)—argues the decision unlawfully discriminates against transgender workers and amounts to a denial of medically necessary care. HRC Foundation President Kelley Robinson condemned the move, saying, “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.” She said the policy is not driven by cost or clinical concerns but is intended to marginalize transgender people in the federal workforce.
According to the lawsuit, major medical and mental health organizations recognize transgender medical treatments as medically necessary and evidence-based. HRC also noted that federal employees often relied on health benefits to obtain care for their dependents. One federal worker named in the suit said the coverage allowed his daughter to receive a puberty-blocking implant and would later be needed for hormone replacement therapy.
The legal challenge comes amid a broader national and international debate over transgender policies, particularly involving minors. In June 2025, the U.S. Supreme Court allowed Tennessee to enforce a law banning gender transition procedures for minors. In the United Kingdom, the government has indefinitely prohibited the use of puberty-blocking drugs for children, citing unresolved safety concerns raised by medical experts.
At the federal level, the administration has pursued additional policies affecting transgender individuals. Executive actions have directed agencies to restrict funding for what officials describe as “chemical and surgical mutilation” of minors. The administration has also supported limits on transgender participation in girls’ sports and defended restrictions on transgender military service.
Official White House Photo by Daniel Torok.
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