US Federal Employees File Class Action Against Trump Administration Gender-Affirming Care Policy 2026

Access to healthcare just became a legal battlefield. As the clock struck midnight on January 1, 2026, a group of US federal employees launched a legal challenge against the Trump administration's move to scrap gender-affirming care coverage.

Legal Battle Over Trump Administration Gender-Affirming Care Policy 2026

According to Reuters, a class action complaint was filed on Thursday against the federal government over a new policy that eliminates medical coverage for gender-affirming care in federal health insurance programs. The Human Rights Campaign Foundation is acting on behalf of these employees, naming the Office of Personnel Management (OPM) as the primary defendant.

The policy change follows an August 2025 directive from the OPM, which stated that health insurance for federal employees and postal workers would no longer cover "chemical and surgical modification of sex traits." Plaintiffs argue this is a discriminatory measure based on sex and are seeking both a rescission of the policy and economic damages.

Broadening Resistance to Healthcare Restrictions

This lawsuit isn't an isolated incident. It's part of a wider conflict over the Trump administration's efforts to roll back legal protections for transgender individuals. US Secretary of Health and Human Services Robert F. Kennedy Jr. has already proposed rules to bar hospitals providing such care to children from Medicaid and Medicare funding.

While OPM officials haven't commented yet, the legal fight is expected to escalate. Democratic state attorneys general have already filed separate suits to block similar rules affecting youth care, signaling a long-term judicial tug-of-war between state and federal authorities.