Attorney General Jennings sues HHS for discriminating against transgender Delawareans

Attorney General Kathy Jennings last week joined 11 other attorneys general in suing the U.S. Department of Health and Human Services (HHS) for unlawfully conditioning hundreds of 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 Jennings 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. They are asking the court to step in and strike down the unlawful funding conditions.

"This is not the first time that the Trump Administration has sought to destroy Delaware's health, education, and research sectors," said Attorney General Kathy Jennings. "This time, they've taken the added measure of trying to attack transgender people in the process. Like the countless other illegal measures that this Administration has tried to force upon us, we'll fight this one, too - and we'll win."

"The federal government does not get to hold Delaware hostage and demand discrimination as the price of doing business," Governor Matt Meyer said. "Delaware will fight any attempt to force our state to betray its values or abandon its people."

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.

Attorney General Jennings and the coalition argue that this policy will have far-reaching consequences across healthcare and social services. As just one example, Delaware was awarded $157 million under the Rural Health Transformation Program this year, and expects to receive as much as $760 million over five years to fund 15 critical projects, programs, and initiatives that will dramatically expand healthcare access, lower costs, and increase the medical workforce in rural Kent and Sussex counties. These include plans for mobile health units, support for telehealth innovations, and building the state's first medical school. Delaware law prohibits discrimination against individuals on the basis of gender identity, and HHS's unlawful funding conditions therefore threaten this critical funding and the initiatives it will enable.

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.

Attorney General Jennings and the coalition also emphasize that the president's discriminatory executive order conflicts with laws in many states, including Delaware, that protect the rights of transgender individuals. Gender-affirming care (such as hormone therapy or other medically recognized treatments) is legal in Delaware and recognized by medical authorities as medically necessary. House Bill 205 ensures that Delaware remains a safe state where providers can practice without fear of cross-state legal consequences and protects patients and their health information from being used in hostile legal actions elsewhere. In addition, Delaware has an executive order issued by Governor Matt Meyer in June of 2025 that that limits cooperation with out-of-state subpoenas or disciplinary actions relating to GAC.

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 Jennings in filing the lawsuit are the attorneys general of New York, Rhode Island, California, Colorado, Illinois, Michigan, Minnesota, Nevada, Oregon, Vermont, and Washington.