Attorney General Neronha co-leads coalition in suing HHS for conditioning funding on discriminatory policy

Attorney General Neronha co-leads coalition in suing HHS for conditioning funding on discriminatory policy

Published on Tuesday, January 13, 2026

Attorney General Peter F. Neronha today co-led a coalition of 12 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 harm transgender people and impose rigid, unscientific definitions of sex.

"A year into this Administration and they continue to impose illegal conditions on federal funding; a colossal waste of time and resources on their part since we have yet to lose a case of this kind," said Attorney General Neronha. "A few issues are at play here. First, Congress has the power of the purse, not the President. It follows that discriminatory policies by the executive branch that attempt to condition funding and bully states into compliance are unlawful. Second, this new policy directly contradicts existing state law, in Rhode Island and elsewhere, which protects the rights of transgender people. This is yet another distraction from an Administration that would rather target marginalized groups than do anything to help the American people. It hasn't worked before and it won't work here."

This new HHS 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 not only applies 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 President's discriminatory executive order conflicts with laws in many states, including Rhode Island, that protect the rights of transgender individuals. In Rhode Island, state law explicitly prohibits state agencies from discriminating on the basis of gender identity or expression (R.I. Gen. Laws § 28-5.1-7) and prohibits state hiring practices and state educational programs that discriminate on the basis of gender identity or expression (R.I. Gen. Laws §§ 28-5.1-4, 8).

This policy will have far-reaching consequences across healthcare and social services. Rhode Island receives billions of dollars in funding annually, a significant portion of which would be subject to the newly imposed gender conditions, and therefore at risk. Further, because these conditions are inconsistent with state law, Rhode Island state agencies would have to determine whether to reject the funding, to the detriment of the state, or to accept the funds at the risk of criminal action under the False Claims Act if the agencies do not comply with these certifications.

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.

Attorney General Neronha co-leads this lawsuit with Attorney General Rob Bonta of California, Attorney General Letitia James of New York, and Attorney General Dan Rayfield of Oregon, and is joined by the attorneys general of Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Vermont, and Washington.

###