Federal Workers Sue Trump Administration Over Transgender Health Care Ban

Five federal employees filed a class-action lawsuit Aug. 3 against the U.S. Office of Personnel Management, alleging the agency illegally stripped health insurance coverage for transgender workers, retirees and their families in violation of federal civil rights law.

Five federal employees filed a class-action lawsuit Aug. 3 against the U.S. Office of Personnel Management. They say the agency illegally stripped health insurance coverage for transgender workers, retirees and their family members.

The lawsuit was filed in U.S. District Court for the District of Columbia and names the U.S. Office of Personnel Management (OPM) Director Scott Kupor as the defendant. The plaintiffs, listed as Daniel Doe, Gregory Goe, Charlotte Coe, Patrick Poe and Riley Roe, work at agencies including the Department of Health and Human Services, the State Department and the U.S. Postal Service. They argue OPM broke Title VII of the Civil Rights Act of 1964, which bans sex discrimination in the workplace.

Two OPM policies are driving this case forward. The first, Carrier Letter 2025-01b, took effect Jan. 1. It ended coverage for “chemical and surgical” changes to a person’s sex traits under two federal health plans. This applies no matter a person’s age or medical need. A second letter, issued March 31, orders insurers to remove a short-term exception. That exception had let some people keep coverage if they were already receiving treatment. The exception ends in 2027.

The lawsuit says OPM created these policies to carry out Executive Order 14168. President Donald Trump signed that order on his first day back in office. It says the government will only recognize two sexes, and that they cannot change. The complaint says several federal courts have already ruled that this order shows bias against transgender people. It points to court rulings in Talbott v. United States, Washington v. Trump, and PFLAG, Inc. v. Trump.

The lawsuit also cites a July 2026 report from the Williams Institute. The report estimates at least 39,400 transgender federal employees, retirees and dependents are affected by the coverage change. Plaintiffs say they face costs ranging from a few hundred dollars to more than $100,000 for treatments their doctors say they need.

Before filing suit, the plaintiffs had to go through a required process with the Equal Employment Opportunity Commission. They started that process in January. OPM did not make a final decision within 180 days. Under federal law, that allowed the plaintiffs to take their case to court.

As the lawsuit now enters the next stage, plaintiffs will ask the court to approve two group, or “class,” lawsuits. One would seek a court order to stop the policy. The other would seek money for people who already paid for care out of pocket. Plaintiffs are also asking the court to restore coverage for care that was denied.

The lawsuit connects this policy to other actions by the Trump administration. It points to executive orders that ban transgender people from serving in the military, cut funding for places that provide gender-affirming care to minors, and cut funding for schools that include LGBTQ topics in their lessons.

Plaintiffs are represented by Correia & Puth PLLC, Cohen Milstein Sellers & Toll LLP and the Human Rights Campaign Foundation.