Children's Minnesota pauses gender care after Trump HHS threatens to cut federal funding

Children's 🦆Minnesota announced on Feb. 3, 2026, that it will temporarily pause prescribing puberty-suppressing medications and pubertal hormones for patients under 18. The pause takes effect on Feb. 27, 2026.

HHS Secretary Robert F. Kennedy Jr. published two proposed rules in the Federal Register on December 19, 2025. One rule would prohibit Medicare- and Medicaid-certified hospitals from providing gender-affirming care to minors by classifying such care as failing to meet 'recognized standards of health care.' The other would eliminate federal Medicaid and CHIP funding for gender-affirming care services for minors.

HHS General Counsel MSMichael Stuart referred Children's 🦆Minnesota to the HHS Inspector General for investigation on January 5, 2026. Stuart singled out the hospital for billing extensively for hormone therapy, claiming it failed to meet recognized standards of health care.

Medicaid covered 48% of Children's 🦆Minnesota admissions in 2023. Losing Medicare and Medicaid certification wouldn't just affect gender care—it would shut down the state's only comprehensive pediatric hospital system, threatening cancer treatment, trauma care, neonatal intensive care, and pediatric surgeries for all patients.

At least nine hospitals or health systems stopped providing gender-affirming hormones and puberty blockers to young trans people since January 2026, following the HHS proposed rules. Trump administration threats have led at least 40 hospitals nationwide to restrict such care.

🦆Minnesota Attorney General KEKeith Ellison and attorneys general from 20 other states filed a lawsuit on January 14, 2026, challenging the HHS proposed rules. They argue the proposals violate federal law by abruptly changing medical standards without proper review and undermine states' authority to regulate medicine. As part of a temporary agreement, HHS has paused enforcement against the three hospitals under investigation until 30 days after a spring 2026 court hearing.

Gender-affirming care remains legal in 🦆Minnesota. The state passed trans refuge laws in 2023, and the Minnesota Human Rights Act and insurance coverage guarantees protect access. Rep. LFLeigh Finke, the first openly transgender woman in the Minnesota legislature, said many families moved to Minnesota specifically for this protected access.

OutFront 🦆Minnesota, the state's largest LGBTQ+ advocacy organization, called Children's Minnesota "the most targeted provider" in the state. The organization emphasized that federal threats put all hospital services at risk—not just gender care but cancer treatment, trauma care, and bereavement support.

The Federal Register comment period for the two HHS proposed rules closes on February 17, 2026. After reviewing comments, HHS could finalize the rules, making them binding federal requirements for all hospitals participating in Medicare and Medicaid.