Attorney General Clark Sues HHS for Conditioning Funding on Discrimination Policy

Attorney General Charity Clark 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. Attorney General Clark 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 yet another illegal attack by the President and his administration on transgender people," said Attorney General Clark. "I will continue to stand with transgender Vermonters and use every tool available to defend their rights in our state. I also will continue to fight back against this Administration's efforts to coerce public institutions into ideological submission."

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 Clark and the coalition argue that this policy will have far-reaching consequences across healthcare and social services. In Vermont, HHS' vague and discriminatory policy now applies to over 250 federal grants representing nearly $2 million in funding flowing to state entities. Grant recipients in Vermont will have to guess what HHS' new grants policy means, and in many cases could have to choose between complying with Vermont's anti-discrimination laws or following the Trump Administration's improperly issued executive order.

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 Clark and the coalition also emphasize that the president's discriminatory executive order conflicts with laws in many states, including Vermont, that protect the rights of transgender individuals. Specifically, Vermont statute states: "It is the policy of the State of Vermont to honor and acknowledge all gender identities and protect public health and dignity of all individuals in Vermont, irrespective of their gender." As a result,Vermont prohibits discrimination based on gender identity in education, public accommodations, housing, and employment.

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

A copy of the complaint is available on our website.

This lawsuit is the 41^st case Attorney General Clark has brought against the Trump Administration since President Trump took office in January. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website at https://ago.vermont.gov/ago-actions .

Contact: Lauren Jandl, Chief of Staff, 802-828-3171