Court Backs OPM Policy Protecting Taxpayers From Funding Gender Transition Procedures 

Washington, DC — The Equal Employment Opportunity Commission has upheld the US Office of Personnel Management’s (OPM) authority to limit coverage of gender transition procedures under the Federal Employees Health Benefits (FEHB) Program, affirming OPM’s responsibility to safeguard taxpayer resources while administering federal health benefits.

The EEOC rejected claims that OPM’s policy violated federal anti-discrimination laws, concluding that the agency acted lawfully in allowing federal health carriers to exclude coverage for certain sex-rejecting (or “gender transition”) procedures. The ruling affirms OPM’s authority to establish coverage standards that balance program sustainability, legal requirements, and responsible stewardship of taxpayer dollars, along with the biological reality of sex differences.

“The EEOC’s landmark ruling reinforces OPM’s duty to manage the FEHB Program responsibly and protect taxpayer-funded benefits for federal employees and retirees,” Associate Director for Healthcare and Insurance Shane Stevens said. “Federal health benefits must be administered in a way that is fiscally responsible, legally sound, delivers high-quality care, and works toward improved health outcomes.”

OPM guidance for Plan Year 2026 established that sex-rejecting services would not be covered under FEHB and PSHB plans. That guidance also requires coverage for certain counseling services and maintaining exceptions processes for individuals already undergoing treatment.

The FEHB Program serves millions of federal employees, retirees, and their families. OPM remains committed to ensuring the program operates efficiently, protects taxpayers, and delivers reliable, affordable coverage consistent with federal law.