New Hampshire Families Sue to Stop the Trump Administration from Cutting Off Medical Care for Transgender Youth on Medicaid 

Lawsuit asks federal court to block the rule before it takes effect October 13, when it would rip health care away from families struggling in this difficult economy

Four New Hampshire families today filed a lawsuit against the Trump administration, asking a federal court to stop a new rule that would end medical care for some transgender young people in low-income families. GLAD Law, the National Center for LGBTQ Rights, and the ACLU of New Hampshire represent the families, who are asking the court to stop the rule from impacting them before it takes effect on October 13, 2026. 

“These families made medical decisions with their doctors, based on careful assessment of their children’s individual medical needs. On October 13, the Trump administration wants to pull the funding for their care mid-treatment, with no plan for what happens to them. We’re asking the court to act quickly so these families don’t lose the medical care that has enabled their kids to thrive.” said Chris Erchull, Senior Staff Attorney, GLBTQ Legal Advocates & Defenders (GLAD Law).  

The rule was issued in August by the Centers for Medicare & Medicaid Services. It cuts off federal Medicaid and CHIP funding for medications and other treatment for gender dysphoria for young people. The ban applies even when a patient’s own doctor has determined the care is medically necessary. 

“The families I see are very worried about this rule going into effect. These are parents who have, over the course of years, worked with their children’s doctors to understand the best path of care for their child’s individual needs. We are talking about families who are already under tremendous financial strain, and now they are facing the prospect of that care being ripped away – critical medications for their children’s development, health, and wellbeing,” said Dr. Frances Lim-Liberty, New Hampshire physician and advocate for families. 

“If this rule goes into effect, I don’t know what options we will have to pay for our daughter’s continuing care. Kylie’s father and I are worried sick about what will happen to her,” said plaintiff Karla Koe, mother of Kylie Koe (both proceeding in the case under pseudonym). 

“The rule falls hardest on families who are struggling to get by in this difficult economy,” said National Center for LGBTQ Rights Senior Staff Attorney Rachel Berg. “The Trump administration’s message to families is plain: if you can’t pay out of pocket, your children will go without the medical care they need.” 

The complaint argues that the rule is unlawful on several grounds: 

  • Congress never gave the Trump administration – or any president – this power. Medicaid has guaranteed children coverage of all medically necessary care for decades. Congress never authorized the executive branch to override that guarantee and decide on its own that one kind of care can’t be covered. The Centers for Medicare and Medicaid Services admits in the rule that it has never before declared that particular services are “inherently not medically necessary.” 
  • It violates Medicaid’s own regulations. Those regulations say a covered service cannot be denied because of a patient’s diagnosis. The rule does exactly that. The same medications stay covered when they’re prescribed for other conditions, such as early puberty. 
  • It ignored the public. More than 90% of the roughly 11,000 comments CMS acknowledged receiving opposed the rule, including detailed evidence from the nation’s leading medical organizations. The law requires an agency to engage with that evidence. Instead, CMS pressed ahead with an outcome President Trump ordered in January 2025. 

New Hampshire’s legislature has already decided that cutting off care for young people who are in the middle of treatment would be wrong. The Trump administration’s rule overrides that decision for people who can’t afford to pay for health insurance. 

“This rule would cut off essential, evidence-based health care options for some young people and take important decisions away from families,” said Henry Klementowicz, Deputy Legal Director of the ACLU of New Hampshire. “Transgender youth and their families covered by Medicaid deserve to make medical care decisions in concert with their health care professionals – not politicians.” 

Pwosè a, Goe v. US Department of Health and Human Services, was filed in the US District Court for the District of New Hampshire. Li plent lan.