Attorney General Dan Rayfield Sues HHS Over Policy Forcing States to Discriminate

Attorney General Dan Rayfield and 11 other attorneys general today sued 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.

"Oregon has worked hard to expand access to medical choice and make sure everyone can get the care they need," said Attorney General Rayfield. "This policy uses federal money to interfere with deeply personal medical decisions that belong to patients, families, and their doctors. Agencies shouldn't be forced to take care away from people just to keep their funding."

Attorney General Rayfield 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.

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.

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 Rayfield and the coalition also emphasize that the president's discriminatory executive order conflicts with laws in many states, including Oregon, that protect the rights of transgender individuals. Oregon law declares discrimination based on gender identity to be a serious matter of public concern that threatens individual rights and the foundations of a democratic society. Consistent with that policy, Oregon broadly prohibits discrimination based on gender identity in employment, education, health care, housing, public accommodations, and other areas of public life, and specifically ensures that students, employees, and visitors in educational settings are protected from discrimination and harassment.

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