Federal Employees File Claim Challenging Trump Policy on Gender-Affirming Care

The Human Rights Campaign Foundation has initiated litigation against the U.S. Office of Personnel Management (OPM), alleging that the OPM’s denial of gender-affirming care to federal employees is discriminatory on the basis of sex.

On Jan. 1, the Foundation filed a class-action claim on behalf of federal employees and their families, in response to an August 2025 OPM letter that directed insurance providers to refuse coverage for gender-affirming care under the Federal Employee Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) plans.

That letter stated that, in 2026, “chemical and surgical modification of an individual’s sex traits through medical interventions” would no longer be covered under health insurance programs for federal employees and U.S. postal workers.

As an exception, counseling services for possible or diagnosed gender dysphoria must still be covered, according to OPM. In addition, covered counseling services must be provided by a licensed mental health provider and may include those who provide faith-based counseling.

“As a result [of OPM’s directive], federal employees and their dependents will lose their insurance coverage for vital healthcare starting Jan. 1, potentially placing care out of reach for many people solely because of who they are,” according to a Human Rights Campaign Foundation statement detailing the class-action claim.

The Jan. 1 filing asserts that excluding coverage for gender-affirming healthcare in the FEHB and PSHB programs is in violation of Title VII, which provides protections against discrimination based on sex, and applies to the terms, conditions and privileges of employment.

In a statement, Human Rights Campaign Foundation President Kelley Robinson predicted that “untold numbers of federal employees and their families will be left out to dry” as a result of OPM’s directive, adding that “this policy is not about cost or care. It is about driving transgender people and people with transgender spouses, children and dependents out of the federal workforce.”

These employees “will now be forced into an impossible situation that pits them between their jobs and access to the care they need,” Robinson continued.

“That is discrimination, plain and simple, and the HRC Foundation refuses to let it stand without a fight. Our litigation seeks to honor those federal workers and preserve the rights, respect and dignity they deserve.”