California approves millions in funding for trans health care in state budget

After months of pushing back on the Trump administration’s attempt to stop youth gender-affirming care nationally, California is establishing its own safety net for vulnerable patients and families.

California approved $26 million in one-time funding aimed at protecting access to health care for transgender youth in the state’s budget package for its 2026-27 fiscal year. It also includes $30 million earmarked for providers of reproductive and transition-related care.

This was welcome news to many LGBTQ+ advocates, families with trans youth, and health care providers. Over the last year, many California families with trans youth have either seen their providers stop youth gender-affirming care or announce plans to do so.

About the funding

The one-time fund will be distributed to health care providers across the state through targeted grants. The money will give providers “meaningful resources” to continue and expand their gender-affirming care offerings, according to TransFamily Support Services, one of the organizations that lobbied for the bill.

Advocacy organizations say the fund will expand the network of trans youth health care providers and insulate the provider network from federal funding cuts.

Meanwhile, the $30 million fund for uncompensated care will help providers deal with funding gaps due to cuts to Medi-Cal and other federal programs.

Newsom’s approval followed months of back-and-forth as California looked to balance its budget after years of budget shortfalls. Newsom’s initial version of the budget did not include the gender-affirming care fund. The legislature then added it back, and it stayed in the final version.

The budget also includes other provisions aimed at helping California’s struggling health care industry, like delaying cuts to Medi-Cal. Newsom has also approved similar funds to protect reproductive health care and abortion access this year.

The response

Trans advocacy organizations celebrated the news this week.

“This historic investment will help keep care accessible, support the providers doing this lifesaving work, and remind trans young people that California will not abandon them,” Kathy Moehlig, TransFamily Support Services’ director, said in a statement.

Many advocates highlighted the importance of this fund during a critical moment for trans health care.

“We must continue to work together to ensure the well-being, health, and autonomy of all people in our state,” Bamby Salcedo, president and CEO of the L.A.- based TransLatin@ Coalition, said in a statement.

The current threats

As the Trump administration continues to restrict trans youth health care nationally, hospitals and health care providers are seeing the federal government try a new tactic to obtain records of trans youth patients: criminal subpoenas.

“It's a worrying tactic that indicates that there might be future efforts to try to criminalize trans healthcare,” said attorney Megan Noor of the Transgender Law Center.

In California, Stanford Children’s Hospital received one such subpoena, which led patient families to sue the federal government. Attorney General Rob Bonta was one of 19 attorneys general who filed an amicus brief supporting the lawsuit, which Noor said can be part of a “symbiotic relationship” between states fighting against federal policy and the people affected by drastic policy shifts coming from Washington, D.C.

A round of administrative subpoenas issued by the Department of Justice last year was largely blocked.

Meanwhile, Rady Children’s Health, the parent company of Children’s Hospital of Orange County and Rady Children’s Hospital in San Diego, will continue offering gender-affirming care to youth under 19 at least until January while a lawsuit filed by California Attorney General Rob Bonta plays out.