by Julia Shumway, Oregon Capital Chronicle
December 24, 2025
Attorney General Dan Rayfield, who led the Oregon House when it passed some of the nation’s strongest laws to protect access to transgender health care, is suing the federal government over efforts to bar gender-affirming care for minors by stripping federal funding.
The lawsuit, filed late Tuesday in U.S. District Court in Eugene, includes 18 other Democratic states and Washington, D.C. It targets a proposal U.S. Health and Human Services Secretary Robert F. Kennedy Jr. announced last week to bar hospitals from participating in Medicare and Medicaid if they provide care including puberty blockers or surgeries for transgender children and teens.
Under a landmark 2023 law, Oregon requires commercial insurers, public employee health plans and the Oregon Health Plan, the state’s Medicaid plan, to cover gender-affirming care, including for minors. Other plaintiff states also require insurance plans, including Medicaid, to cover gender-affirming care.
Kennedy’s proposal goes beyond banning Medicaid coverage for gender-affirming care for minors, which the proposal describes as “sex-rejecting procedures.” It seeks to block hospitals or doctors that provide such care from participating in Medicaid or Medicare entirely.
Patients covered by Medicaid and Medicare represent the majority of the typical hospital’s volume, according to the American Hospital Association, though the federal programs often pay less than the cost of care.
Rayfield said in a statement announcing the lawsuit that health care decisions belong with families and their doctors, not the government.
“By targeting Oregon providers, HHS is putting care at risk and forcing families to choose between their personal health care choices and their doctor’s ability to practice,” he said.
The lawsuit argues that the federal government is attempting to circumvent normal procedure by introducing a major policy change without consulting doctors, patients or states. The states are asking a judge to block Kennedy’s proposal from taking effect.
It’s the 53rd lawsuit Oregon has filed against the federal government this year.
The attorneys general of California, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Rhode Island, Vermont, Washington and Wisconsin, as well as Pennsylvania Gov. Josh Shapiro, joined Rayfield in the lawsuit.
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Oregon Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Julia Shumway for questions: [email protected].