Washington Attorney General Nick Brown and a coalition of 11 other states sued the U.S. Department of Health and Human Services on Tuesday, arguing the agency is unlawfully tying hundreds of billions of dollars in federal funding to policies they say require discrimination against transgender people, according to the lawsuit and a statement from Brown.
Brown said the lawsuit marks his 50th legal challenge against what his office describes as federal overreach since he took office nearly a year ago.
The complaint was filed in U.S. District Court in Rhode Island and seeks to block a new HHS policy that conditions federal health, education and research funding on compliance with a presidential executive order redefining sex in ways that exclude transgender people.
Under the policy, recipients of HHS funding — including states, public universities, hospitals and health agencies — must certify compliance with Title IX protections “including the requirements” of the executive order.
The states argue HHS lacks the authority to impose those conditions and is attempting to force states to violate their own anti-discrimination laws to avoid losing funding already approved by Congress.
“The administration does not care who gets hurt or what laws are violated in their obsessive targeting of trans people,” Brown said. “We refuse to back down to these illegal demands and will fight for every dollar Congress has authorized.”
The lawsuit says the funding conditions apply broadly across HHS and put existing programs at immediate risk.
According to the complaint, recipients could face termination of grants, repayment of funds, or even civil or criminal liability if HHS later determines they are out of compliance.
The states also argue the agency has failed to clearly explain what compliance would require.
Brown’s office says the legal challenges he has brought since Jan. 15, 2025, have helped protect more than $15 billion in federal funding for Washington state.
His office said those funds support public schools, food programs for children, housing assistance for people transitioning out of homelessness, and efforts to prevent terrorism and environmental disasters.
The coalition argues the HHS policy violates the U.S. Constitution by overriding Congress’ authority over federal spending, violates federal law by attaching vague and retroactive conditions to funding, and breaks the Administrative Procedure Act by implementing a major policy change without proper notice or explanation.
The lawsuit also highlights conflicts between the federal policy and state laws.
In Washington, the Washington Law Against Discrimination bars discrimination based on sexual orientation, which includes gender identity and expression, in employment, public accommodations, housing, credit and insurance.
State law also prohibits discrimination based on gender identity or expression in health care services and in public schools.
The states are asking the court to declare the policy unlawful and block HHS from enforcing it so they can continue providing health care, education and other services without what they describe as coercive funding conditions.
Joining Washington in the lawsuit are the attorneys general of New York, Rhode Island, California, Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Oregon and Vermont.
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