A federal judge has delivered a significant blow to Robert F. Kennedy Jr. after blocking a controversial effort aimed at restricting federal funding for gender-related medical procedures involving minors.
During a lengthy hearing in Eugene, Oregon, U.S. District Judge Mustafa Kasubhai, a Biden appointee, said he would side with a coalition of Democrat-led states challenging the policy, ruling that Kennedy’s directive likely overstepped federal authority.
The decision halts, at least temporarily, an initiative that critics said could have reshaped how hospitals and providers handle such treatments nationwide.
At the center of the dispute is a December declaration issued by Kennedy, which outlined the Department of Health and Human Services’ (HHS) position that certain medical interventions for minors diagnosed with gender dysphoria carry what he described as an “unfavorable risk-benefit profile.”
The declaration signaled that providers offering such treatments could face exclusion from key federal funding streams, including Medicare, Medicaid, and the Children’s Health Insurance Program.
In December, Resist the Mainstream reported that state attorneys general from 19 states and Washington, D.C., quickly challenged the move, arguing it amounted to an unlawful attempt to impose new healthcare standards without proper legal authority.
The lawsuit claimed the policy would effectively pressure hospitals into discontinuing services by threatening their financial stability.
Judge Kasubhai appeared to agree with that assessment, rejecting the federal government’s argument that Kennedy’s declaration was merely an opinion without binding force. “
The declaration itself is no mere opinion,” he said during the hearing, dismissing the defense as lacking a coherent legal foundation, Oregon Live reported.
Attorneys representing the states argued that the policy had already begun to produce real-world consequences.
According to court filings, multiple hospitals and health centers were referred to the Office of Inspector General for potential exclusion from federal funding programs based on the declaration.
Legal counsel for the states warned that such referrals could act as a “financial death sentence” for providers, as losing access to federal funding would jeopardize their ability to operate entirely.
New York Attorney General Letitia James praised the ruling, saying it provides clarity for patients and providers.
“Health care services for transgender young people remain legal, and the federal government cannot intimidate or punish the providers who offer them,” she said in a statement, according to Reuters.
Supporters of Kennedy’s position, however, have argued that the federal government has a responsibility to evaluate the safety and effectiveness of medical treatments for minors, particularly when long-term outcomes remain debated.
The declaration itself framed the issue as one of medical standards and patient protection, rather than political policy.
The case also highlights a broader clash between federal authority and state-level control over healthcare decisions.
Many of the states involved in the lawsuit have policies requiring coverage for gender-related care under Medicaid and prohibit discrimination based on gender identity, setting up a direct conflict with the federal directive.
Judge Kasubhai’s ruling came after more than four hours of arguments and included a denial of the federal government’s attempt to dismiss the case outright.
He has ordered both sides to submit additional briefs within two weeks as he considers whether to issue a broader injunction that could further limit enforcement of the policy.
While the legal battle is far from over, the decision represents a major early setback for Kennedy’s effort and underscores the growing national divide over healthcare policy, federal authority, and the role of government in regulating controversial medical treatments for minors.
