Medicaid Program; Prohibition on Federal Medicaid and Children's Health Insurance Program Funding for Sex-Rejecting Procedures Furnished to Children
What happened
Signed by Donald Trump, this final rule, effective October 13, 2026, prevents State Medicaid agencies from paying for "sex-rejecting procedures" for children under 18 and prohibits Federal Medicaid funding for these procedures for individuals under 18. Similarly, it stops State Children's Health Insurance Program (CHIP) agencies from paying for these procedures for children under 19, and bans Federal CHIP dollars for individuals under 19. For current beneficiaries, federal funding for cross-sex hormone therapy medications can continue for up to 6 months from the rule's effective date.
Why it matters
This policy directly impacts healthcare access for minors by eliminating federal funding for specific medical procedures under Medicaid and CHIP. It will require states to update their Medicaid and CHIP plans to comply with these new federal restrictions. The temporary continuation of funding for active cross-sex hormone therapy aims to provide a transition period for some beneficiaries.
Who it affects
- ›Children under 18 receiving Medicaid
- ›Children under 19 receiving CHIP
- ›State Medicaid agencies
- ›State CHIP agencies
- ›Beneficiaries on cross-sex hormone therapy
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