Home Economy Government Neronha leads coalition challenging funding policy that targets transgender people

Neronha leads coalition challenging funding policy that targets transgender people

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PBN Staff

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01/13/2026

Neronha-1 — ATTORNEY General Peter F. Neronha is co-leading a lawsuit with attorneys general from 11 other states against the U.S. Department of Health and Human Services funding policy that they claim discriminates against transgender people. / COURTESY PETER F. NERONHA

PROVIDENCE – Attorney General Peter F. Neronha is co-leading a lawsuit with attorneys general from 11 states challenging a U.S. Department of Health and Human Services funding policy that they claim discriminates against transgender people. Under the new HHH policy, recipients of federal health, education and research funding must certify compliance with an executive order signed by President Donald

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PROVIDENCE – Attorney General Peter F. Neronha is co-leading a lawsuit with attorneys general from 11 states challenging a U.S. Department of Health and Human Services funding policy that they claim discriminates against transgender people. Under the new HHH policy, recipients of federal health, education and research funding must certify compliance with an executive order signed by President Donald Trump in January 2025 that excludes transgender people from protections under Title IX. Filed in U.S. District Court in Rhode Island on Tuesday, the coalition argues that HHS lacks authority to impose these conditions, which it argues violates the U.S. Constitution by overriding Congress’ power of the purse, breaks federal law by attaching vague and retroactive requirements and violates the Administrative Procedure Act by implementing a major policy change without proper notice. The policy also contradicts decades of legal precedent affirming Title IX protections for gender identity, the coalition argues in its lawsuit. Neronha said the new HHH policy is another distraction from the Trump administration he says would rather target marginalized groups than do anything to help the American people. “A year into this administration and they continue to impose illegal conditions on federal funding; a colossal waste of time and resources on their part since we have yet to lose a case of this kind,” Neronha said. “A few issues are at play here. First, Congress has the power of the purse, not the president. It follows that discriminatory policies by the executive branch that attempt to condition funding and bully states into compliance are unlawful. Second, this new policy directly contradicts existing state law, in Rhode Island and elsewhere, which protects the rights of transgender people." Neronha also added that Rhode Island law explicitly prohibits discrimination based on gender identity in state agencies, hiring practices and educational programs, creating a direct conflict with the federal policy. The attorneys general warn in the lawsuit that the policy could jeopardize billions in federal funding and force states to choose between rejecting funds or risking liability under the False Claims Act. The coalition is asking the court to declare the policy unlawful and block HHS from enforcing it, allowing states to continue providing health care, education and other essential services without being forced to discriminate. Other states joining the lawsuit include California, New York, and Oregon, Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Vermont and Washington.