Twelve yyyyyyeeeeeeeeerrrrrrrrrrrrr Democratic-led states filed a federal lawsuit Tuesday challenging the Trump administration's decision to tie hundreds of billions of dollars in health, education, and research funding to compliance with policies they say would force discrimination against transgender Americans.

The coalition, led by New York Attorney General Letitia James, California's Rob Bonta, and Oregon's Dan Rayfield, filed suit in federal court in Providence, Rhode Island, targeting conditions imposed by the Department of Health and Human Services under Secretary Robert F. Kennedy Jr.

The funding conditions stem from President Trump's January 2025 executive order titled "Defending Women From Gender Ideology Extremism," which directed federal agencies to recognize only two sexes—male and female—and end funding for what it termed "gender ideology."

Under the new HHS policy, recipients of federal grants must certify compliance with Title IX protections, which the agency now characterizes as "including the requirements" of Trump's executive order. The policy applies retroactively to existing grants, not just new funding, potentially exposing recipients to grant terminations, repayment demands, and civil or criminal penalties.

"This policy threatens healthcare for families, life-saving research, and education programs that help young people thrive in favor of denying the dignity and existence of transgender people," James said in a statement. "New York will not abandon our values, our laws, and above all, our residents."

In New York alone, over $80 billion in grant funding is at risk, according to the attorney general's office. These funds support critical health services, immunization programs, maternal and infant health services, HIV prevention and treatment, and substance use and mental health programs.

The lawsuit argues that HHS lacks authority to impose these conditions and violates the Constitution by overriding Congress's power over federal spending. The states also contend the policy breaks federal law by attaching vague and retroactive conditions to funding without proper notice or explanation.

White House spokesperson Kush Desai defended the administration's position, stating: "The administration is committed to using every lever of executive power to prevent federal funds from being dispensed towards child mutilation."

The legal challenge highlights a broader conflict between federal policy and state laws protecting transgender rights. New York's constitution protects the right to express gender identity free from discrimination, while the state's Human Rights Law prohibits discrimination based on gender identity or expression.

The other states joining the lawsuit are Colorado, Delaware, Illinois, Michigan, Minnesota, Nevada, Rhode Island, Vermont, and Washington. The coalition is asking the court to declare the policy unlawful and block HHS from enforcing it.

The case represents one of the first major legal challenges to the Trump administration's efforts to reshape federal policy on transgender rights through funding mechanisms, setting up a potential constitutional showdown over the limits of executive power and federal spending authority.