Sponsors (4)
The bill reduces federal and private spending and clarifies coverage rules by excluding many gender-transition procedures from tax deductions and federal programs, but it does so at the cost of significantly reduced access to care, higher out-of-pocket costs, worse health outcomes for transgender people, and increased administrative and civil-rights risks.
Taxpayers and federal budgets: Federal outlays and some private benefit costs for gender-transition procedures will fall because the bill excludes those services from Medicaid, CHIP, Medicare, tax deductions, and EHBs.
State and federal program administrators (CMS, HHS, state Medicaid/CHIP offices): Coverage and reimbursement rules are made explicit by statutory exclusions and effective dates, reducing ambiguity for program administration.
Insurers and employers: Carriers and employers will not be required to include gender-transition procedures in benefits (narrower EHB scope), which limits HHS discretion and can reduce benefit costs and mandate uncertainty.
Transgender people across programs and income levels: Will lose federal coverage and tax deductions for many gender-affirming procedures—raising out-of-pocket costs, reducing access to medically necessary care, and risking worsened mental and physical health outcomes.
Low-income, Medicaid, CHIP and Medicare beneficiaries (including minors): Face heightened financial barriers and possible loss of needed care because federal funds will not cover specified transition procedures, forcing families or individuals to pay, forgo care, or travel out-of-state.
States and state taxpayers: States that choose to continue coverage will likely need to use state-only funds, creating budget pressure and shifting costs to state taxpayers or forcing coverage reductions elsewhere.
Based on analysis of 6 sections of legislative text.
Removes federal tax deductibility and bars federal funding or coverage of defined gender transition procedures under Medicaid, CHIP, Medicare, and ACA essential health benefits.
Introduced May 5, 2025 by Claudia Tenney · Last progress May 5, 2025
Bans federal support for medical care described as “gender transition procedures” across multiple federal programs and removes those procedures from the medical expense tax deduction. It amends the tax code, Medicaid, CHIP, Medicare, and the ACA essential health benefits rules to exclude hormonal and surgical treatments intended to change a person’s biological sex as defined in the bill. The bill defines “gender transition procedure” and uses biologically based definitions of sex (male/female) tied to reproductive anatomy at conception; it lists many specific drugs and surgeries that would be excluded from federal tax deductions and federal payment or matching funds, while carving out narrow exceptions for certain medical conditions, emergencies, complications, and historically accepted pediatric uses (e.g., treatment for precocious puberty). Most provisions take effect on or after the date of enactment, with the tax change applying to taxable years beginning after enactment.