NJ LGBTQ+ groups urge governor to restore funding for transgender youth healthcare

Advocates urge Gov. Mikie Sherrill to use state funds to preserve gender-affirming healthcare coverage for transgender youth following federal cuts.

Eighteen New Jersey LGBTQ+ and allied organizations are calling on Gov. Mikie Sherrill to use state funds to continue providing gender-affirming healthcare to low-income transgender youth after the Trump administration cut federal funding for certain treatments.

In an Oct. 20 letter to Sherrill, the organizations urged the governor to take immediate executive action to preserve coverage for young people enrolled in Medicaid and the Children’s Health Insurance Program, known as CHIP.

The request follows a federal rule that took effect Oct. 13, prohibiting federal Medicaid funding for certain gender-affirming treatments for patients under 18 and federal CHIP funding for patients under 19.

The rule affects coverage of puberty blockers, hormone therapy, and certain surgical procedures used to treat gender dysphoria. The rules allow federal funding to continue for up to six months for some patients already receiving hormone therapy. Mental health services are not affected.

According to KFF, the leading health policy organization in the U.S., there were about 130,000 young trans people with Medicaid or CHIP coverage who live in states without restrictions on care. These enrollees, if they seek gender-affirming care, will now face new limitations under the rule if their state does not provide state-funded access.

The Trump administration has defended the restrictions, arguing that the treatments carry significant risks and lack sufficiently reliable evidence of clinical benefits.

The coalition is asking New Jersey to follow Massachusetts, Connecticut, New Mexico and California, which have taken steps to maintain coverage using state funding.

In their letter to Sherrill, the organizations argue that the governor has the authority under existing state laws to continue paying for the treatments without federal assistance.

“The cost is negligible to the State budget, as the number of transgender youth who are Medicaid and CHIP participants in New Jersey is low. But the impact to each individual patient is enormous,” the letter states.

Without state intervention, the organizations warn that some families could be forced to purchase supplemental private insurance or discontinue treatment.

“New Jersey’s shield laws are important, but cannot protect care that families can no longer afford,” said Louise Walpin and Rosalie Wong, co-leaders of WADEIn New Jersey, an organization that signed the letter.

Lauren Albrecht, senior director of advocacy and organizing for Garden State Equality, said the state should continue protecting transgender residents from federal policies that restrict access to healthcare.

“We cannot sit on the sidelines,” Albrecht said. “New Jersey has long been a leader in protecting LGBTQ+ safety and rights — this is the next frontier of our ongoing battle for equality.”

The Transgender Rights Coalition of New Jersey warned that the funding restrictions could disproportionately affect families with limited financial resources.

“No child should be forced to medically detransition because of their family’s income,” the organization said in a statement. “Other states are stepping forward to protect these children, and New Jersey must do the same.”

Organizations signing the letter

• Garden State Equality
• Bloomfield Pride
• Boonton Rainbow Pride
• Cherry Hill Women’s Center
• EDGE NJ
• Glisten NJ
• Luminosas Wellness Collective
• Newark Pride Inc.
• North Jersey Community Research Initiative
• OutFront Metuchen
• PFLAG Collingswood
• Planned Parenthood Action Fund of New Jersey
• Shivs Third Eye
• The Center in Asbury Park
• The Dads Foundation, Inc.
• TransFormation Collective
• Transgender Rights Coalition of New Jersey
• WADEIn New Jersey