ATTORNEY GENERAL RAOUL SUES HHS FOR CONDITIONING FUNDING ON IMPLEMENTING POLICY THAT DISCRIMINATES AGAINST TRANSGENDER INDIVIDUALS

ATTORNEY GENERAL RAOUL SUES HHS FOR CONDITIONING FUNDING ON IMPLEMENTING POLICY THAT DISCRIMINATES AGAINST TRANSGENDER INDIVIDUALS

January 13, 2026

Chicago - Attorney General Kwame Raoul today 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.

Raoul and the coalition argue 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.

"The Trump administration is attempting to hold billions of dollars hostage in an attempt to force states to exclude and discriminate against people who are transgender," Raoul said. "Everyone deserves to live authentically, and I will continue to push back against the administration's repeated and cruel attempts to erase transgender Americans."

Federal law already requires states, public universities, health agencies, hospitals and other recipients of federal funds to certify compliance with Title IX protections. However, HHS' sweeping new policy now mischaracterizes Title IX as "including the requirements" of the president's discriminatory executive order that targets transgender people. HHS has made this certification a condition on 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 Raoul and the coalition argue that this policy will have far-reaching consequences across health care and social services. The HHS policy applies to federal dollars that Illinois receives to support vital health and education programs, including suicide prevention, support for individuals living with HIV and HIV prevention, and critical statewide surveying to understand the needs of LGBTQ+ Illinoisans.

The attorneys general argue 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 Administrative Procedure Act by imposing a major policy change without notice or explanation, breaks federal law by attaching vague and retroactive conditions to funding, and violates the U.S. Constitution by overriding Congress' power of the purse. The policy also contradicts decades of court opinions and settled federal guidance recognizing that Title IX protects people from discrimination based on gender identity.

Raoul and the coalition also emphasize that the president's discriminatory executive order conflicts with laws in many states, including Illinois, that protect the rights of transgender individuals. The Illinois Human Rights Act contains numerous civil rights protections for transgender, nonbinary and gender nonconforming individuals in employment, housing and places of public accommodation such as health care and schools.

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