In a win for trans people, their families, and healthcare providers in the state, California has passed a new budget that includes funds to protect gender-affirming and reproductive healthcare from federal funding interference. Gov. Gavin Newsom (D) signed the budget, which was the result of extensive lobbying from LGBTQ+ advocacy groups, including TransFamily Support Services.

“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,” said Kathy Moehlig, director of TransFamily Support Services.

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The 2026-27 budget sets aside $26 million to support gender-affirming care access in the state, as proposed by a coalition of LGBTQ+, healthcare, and civil rights organizations earlier this year. The fund will be disbursed through grants to ensure that providers have “meaningful resources” not only to continue providing gender-affirming care to existing patients but also to expand their offerings.

While there are state laws protecting gender-affirming care in California, the federal Centers for Medicare and Medicaid Services is working to block federal Medicaid and CHIP funding from going to gender-affirming care for minors. The fund in California’s new budget will ensure that there is money to cover those services if those federal dollars are pulled.

Similarly, the budget allocates another $30 million for providers of reproductive and transition-related care. That money will be used to ensure that trans adults and those seeking abortions or IVF procedures are covered, despite the funding gap threatened by federal funding cuts to California’s Medi-Cal plan.

The move, in part, is designed to ensure that hospital systems are supported and not left in a position where they have to shutter their gender-affirming care programs for trans youth. In California alone, Children’s Hospital Los Angeles, Rady Children’s Hospital, and Children’s Hospital of Orange County have suspended their programs for trans youth as the presidential administration continues to threaten federal funding and the safety of patients and providers at hospitals across the country.

Rady Children’s Health has restarted its gender-affirming care programs for trans youth until at least January owing to a lawsuit led by California Attorney General Rob Bonta.

As well as threats to funding, the Department of Justice (DOJ) has been seeking to obtain private medical information, often with identifiable details, for minor patients who have received gender-affirming care. Administrative subpoenas from the DOJ have been quashed by judges who have called them a “ fishing expedition” designed to “ intimidate” and end gender-affirming care through “fear.”

The DOJ has since escalated its campaign by issuing criminal subpoenas, including one targeting Stanford Children’s Hospital in California. A federal judge recently issued a temporary restraining order to prevent Stanford’s subpoena from being executed.

While Gov. Newsom’s press release on the budget discusses many facets, the main focus is that it is a historic balanced budget. It does not specifically mention the protections for trans healthcare.

Trans advocates celebrated the new budget measure.

“We are grateful to Governor Newsom, policymakers, and advocates who took action to protect access to care for our community in California,” said TransLatin@ Coalition President and CEO Bamby Salcedo. “Our organization will continue to fight to protect and support our community. Our policy team will continue to track the implementation of these funds and ensure that these funds continue to support the livelihood of our community across the state.”

Newsom’s record on trans rights took a hit last year when he invited right-wing podcaster Charlie Kirk on his podcast and said he agreed that allowing trans women in sports was “deeply unfair.” The trans healthcare protections were not in Newsom’s original budget proposal but were added by the legislature before it was finally signed.