Federal workers file class action lawsuit over transgender health coverage ban

August 6, 2026 - 12:30

Five federal workers have launched a proposed class action lawsuit against the Trump administration, claiming that a recent change to their health insurance plan is discriminatory and unlawful. The lawsuit, filed Monday in federal court, targets a policy that removes coverage for gender-affirming medical care from the Federal Employees Health Benefits Program.

The plaintiffs argue that the exclusion violates federal employment law and the Constitution's equal protection guarantees. They say the ban forces transgender employees to pay out of pocket for medically necessary treatments, including hormone therapy and surgeries, which can cost tens of thousands of dollars. One plaintiff, a veteran who works at the Department of Veterans Affairs, said he now faces the choice between skipping care or going into debt.

The lawsuit seeks to represent all federal workers and their family members who have been denied coverage for gender-affirming procedures since the policy took effect. It asks the court to block the ban and order the government to restore coverage retroactively.

The administration has defended the policy as a cost-saving measure and a return to traditional medical standards. But the plaintiffs' lawyers argue that no medical organization supports the exclusion, and that it singles out transgender people for unequal treatment. The case is expected to move through the courts over the coming months, with a hearing on a preliminary injunction likely soon.