State AGs Sue HHS Over Transgender Funding Policy

CO Attorney General Press Releases

Filed January 13th, 2026

Detected February 7th, 2026

Summary

Attorney General Phil Weiser, joined by 11 other state attorneys general, has sued the U.S. Department of Health and Human Services (HHS). The lawsuit challenges an HHS policy that conditions billions of dollars in federal funding on states' agreement to a policy that discriminates against transgender people. The AGs argue HHS lacks the authority to impose these conditions and is illegally coercing states.

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What changed

A coalition of 12 state Attorneys General, led by Colorado AG Phil Weiser, has filed a lawsuit against the U.S. Department of Health and Human Services (HHS). The suit challenges an HHS policy that requires recipients of federal health, education, and research funding to certify compliance with an executive order perceived as discriminatory against transgender individuals. The AGs contend that HHS is unlawfully using federal funding to coerce states into adopting discriminatory practices, violating state laws and federal statutes, including the Administrative Procedure Act and the U.S. Constitution's power of the purse. The lawsuit seeks to have the policy declared unlawful and to block its enforcement.

This action has significant implications for entities receiving federal funding from HHS, including states, public universities, health agencies, and hospitals. These entities are now at risk of losing grants, repaying funds, or facing civil/criminal liability if they do not comply with the new policy, which applies to both new and existing funding. The lack of clear guidance on compliance requirements exacerbates the risk. Regulated entities should consult with legal counsel to understand their obligations and potential exposure, especially given the broad scope and potential penalties associated with non-compliance. The coalition is seeking a judicial declaration that the policy is unlawful and an injunction against its enforcement.

Source document (simplified)

Attorney General Phil Weiser sues HHS for conditioning funding on discriminatory policy

Jan. 13, 2026 (DENVER) – Attorney General Phil Weiser today joined 11 other attorneys general in suing the U.S. Department of Health and Human Services for unlawfully conditioning billions of dollars in federal funding on states’ agreement to discriminate against transgender people.

Under a new HHS policy, recipients of federal health, education, and research funding must certify compliance with a presidential executive order that seeks to deny the existence of transgender people and impose rigid, unscientific definitions of sex. Attorney General Weiser and the coalition argue that HHS has no authority to impose these conditions and is illegally using federal funding to coerce states into discriminating against their residents, in violation of state laws protecting transgender people from discrimination, including in Colorado.

“The Trump administration’s discriminatory policy will have far-reaching consequences across healthcare and social services. The president’s discriminatory executive order conflicts with laws in Colorado that protect the rights of transgender individuals,” said Attorney General Weiser. “Once again, we are suing to challenge this gross overreach by the administration and its attempt to force states to discriminate against their residents in order to receive important federal funding.”

HHS’s sweeping policy requires states, public universities, health agencies, hospitals, and other recipients of federal funds to certify compliance with Title IX protections, which it characterizes as “including the requirements” of the president’s executive order redefining sex in a way that excludes transgender people. HHS has made this certification a condition of funding across the agency and has warned that recipients could face termination of grants, repayment of funds, and even civil or criminal liability if they are found to be out of compliance. The policy applies not only to new grants, but also to existing funding, placing ongoing programs at immediate risk. At the same time, HHS has failed to clearly explain what compliance requires.

The attorneys general argue that HHS lacks the authority to impose these conditions and is unlawfully attempting to rewrite Title IX through executive action and agency policy. The lawsuit alleges that the policy violates the U.S. Constitution by overriding Congress’ power of the purse, breaks federal law by attaching vague and retroactive conditions to funding, and violates the Administrative Procedure Act by imposing a major policy change without notice or explanation. The policy also contradicts decades of court opinions and settled federal guidance recognizing that Title IX protects people from discrimination based on gender identity.

The coalition is asking the court to declare the policy unlawful and block HHS from enforcing it, allowing states to continue providing health care, education, and other essential services without being forced to discriminate.

Joining Attorney General Weiser in filing the lawsuit are the attorneys general of California, Delaware, Illinois, Michigan, Minnesota, Nevada, New York, Oregon, Rhode Island, Vermont, and Washington.

Read the filed complaint (PDF).

Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov

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