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State AGs Sue HHS Over Transgender Discrimination Funding Policy

U.S. Department of Health and Human ServicesJanuary 13, 2026Oregon Attorney General

Summary

Civil rights and health enforcement action where Oregon Attorney General Dan Rayfield, joined by 11 other states, sued the U.S. Department of Health and Human Services (HHS) over a policy that conditions federal health, education, and research funding on states' agreement to discriminate

Contract Impact

In-house legal teams should review all federal grant agreements, cooperative agreements, and memoranda of understanding (MOUs) with the U.S. Department of Health and Human Services (HHS) and its sub-agencies. Specifically scrutinize clauses related to: (1) funding conditions and certifications of compliance, particularly any language requiring adherence to external executive orders or agency interpretations of statutes like Title IX; (2) termination, suspension, or repayment provisions triggered by non-compliance; (3) representations and warranties regarding adherence to non-discrimination laws; and (4) clauses that incorporate by reference external policies or definitions. Changes may be needed to challenge vague or overbroad certification requirements, assert state law protections against discrimination, and seek injunctive relief to prevent termination of existing funding based on retroactive or unauthorized conditions.

Contract Search Terms

funding certification requirementcompliance with executive orderTitle IX redefinitionnon-discrimination clausestate law preemptiongrant termination clauseretroactive funding conditionsfederal funding conditionscertification of compliancediscrimination based on gender identity

Violation Types

Entity Details

Entity

U.S. Department of Health and Human Services

Also known as: HHS

Industry

Other

Official Sources

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