Attorney General Peter F. Neronha has joined with 11 other state attorneys general to file a lawsuit against the U.S. Department of Health and Human Services (HHS). The suit challenges a new federal policy that ties health, education, and research funding to compliance with a presidential executive order that the coalition claims discriminates against transgender people.
“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.”
According to the lawsuit, HHS now requires recipients—including states, public universities, health agencies, and hospitals—to certify they are complying with Title IX as interpreted by a recent executive order redefining sex in ways that exclude transgender individuals. The certification requirement affects both current grants and future funding opportunities. HHS has warned noncompliant recipients about possible termination of grants or repayment of funds as well as civil or criminal penalties but has not provided clear guidance on what constitutes compliance.
The attorneys general contend that HHS lacks legal authority for these requirements. They argue that imposing such conditions violates congressional spending powers set out in the U.S. Constitution and contravenes established federal law by attaching unclear and retroactive requirements to existing funds without proper notice or explanation—an action they say also breaks rules under the Administrative Procedure Act.
The complaint notes that longstanding court decisions recognize Title IX protections for gender identity discrimination—a stance at odds with the administration’s interpretation.
Rhode Island law prohibits discrimination based on gender identity or expression in state agencies’ operations (R.I. Gen. Laws § 28-5.1-7) as well as in hiring practices and educational programs (R.I. Gen. Laws §§ 28-5.1-4, 8). State officials warn that billions of dollars in annual federal support could be jeopardized if Rhode Island cannot comply with these new terms without violating its own anti-discrimination laws.
Neronha is leading this legal challenge along with Attorneys General Rob Bonta (California), Letitia James (New York), Dan Rayfield (Oregon), and their counterparts from Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Vermont, and Washington.
The group seeks a court order blocking enforcement of HHS’s policy so states can continue delivering services without being compelled to violate their anti-discrimination laws.
