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The Psychotherapist Association for
Gender & Sexual Diversity
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HHS rule information from the Advocacy Committee

August 13, 2026 10:02 AM | Bridget Bertrand (Administrator)

Hi all, we are sharing a statement from our allies in activism, Rainbow Families Action and Cal Equity. 

Please sign up for the RFA newsletter to get important information about supporting trans kids and families: 
www.rainbowfamiliesaction.org 

You can also click to read Equity CA's statement, which highlights that the "...historic $26 million investment in the state budget to preserve healthcare for transgender young people in California" will likely be used to fill gaps where folks might not have funding for GAC through Medicaid and CHIPS.  https://www.eqca.org/cms-final-rule/

Rainbow Families Action statement: "RFA is aware that the Centers of Medicare & Medicaid Services (“CMS”) issued its final rule prohibiting federal Medicaid and CHIPS (Children’s Health Insurance Program) funding of certain gender-affirming medical care for children under 19 years of age. We understand this rule will cause fear and confusion, including in our medical community. Thus, we want to provide some immediate reassurances.

First, while this cruel, discriminatory anti-trans rule does affect federal funding of medically-necessary and life-saving care, including puberty blockers and hormone therapy, it does not go into effect today. The rule states it will take effect on October 13, 2026 and includes a six-month “tapering off” period for affected patients receiving hormone therapy. Additionally, several organizations have already pledged to challenge the legality of this rule, which will likely delay its implementation further and may ultimately be struck down as impermissible before affecting our children’s medical care.

Second, this rule also does NOT change California law or prohibit medical providers from continuing to provide essential gender-affirming care to our youth AND we expect that the state will direct Medi-Cal funds to continue to pay for this care through state-only funds (likely via the uncompensated care fund in the state budget that RFA members tirelessly advocated for in the legislative season). California law continues to prohibit healthcare providers and insurers from discriminating against or denying care to trans/genderfluid/intersex people.

Third, the rule explicitly states it does NOT affect mental health care. It also does not prohibit private insurance coverage or California State Medicaid funds or any other funding sources.

Fourth, this rule does NOT prevent our children from receiving medically administered hormone therapy or puberty blockers. Thus, we urge you to communicate with your medical providers, make a plan for continued care, and explore medical options you can implement now to avoid any interruption in care due to confusion this rule and impending legal challenges may cause."

Lastly, you can sign up for this webinar tonight: 

The Campaign for Southern Equality, partners at GLAD Law, the National Center for LGBTQ Rights (NCLR), and Transhealth are hosting a virtual town hall for families and communities about the new Medicaid rule **tonight**, Thursday, August 13 at 2:30 pm PSÞ / 5:30 pm ET. Register here: https://zoom.us/webinar/register/WN_JQiz8AoHSImYjh8XkQT8pg#/registration

Thank you for passing this information along to families of Trans kids and all who are fighting alongside us.

In Solidarity, 

Gaylesta Advocacy Committee