Texas Attorney General Ken Paxton is leading a new front in the national fight over transgender protections, rallying a coalition of more than 20 Republican attorneys general behind the Trump administration’s effort to undo a Biden-era shift on disability law and gender dysphoria.
The group filed a formal comment Tuesday backing a proposed federal rule that would narrow how gender dysphoria fits under disability protections. Their move supports a Department of Health and Human Services notice that aims to tighten Section 504’s exclusions for gender-identity disorders, setting up another high-stakes clash over transgender rights, federal funding, and state budgets.
Federal rulemaking and the deadline
On Dec. 19, the Department of Health and Human Services published a notice of proposed rulemaking that would revise 45 C.F.R. 84.4(g). The proposal would spell out that the statutory exclusion for “gender identity disorders not resulting from physical impairments” also covers “gender dysphoria not resulting from a physical impairment.” According to the Federal Register, HHS gave the public 30 days to weigh in, with the comment period closing Tuesday, and specifically asked for feedback on its reading of Section 504. The notice presents the change as a clarification of existing statutory language, not the creation of a new entitlement.
What Paxton's coalition filed
In their electronically submitted comment, Paxton and 21 other Republican attorneys general argue that the 2024 Final Rule illegally stretched the Rehabilitation Act and opened the door to federal enforcement actions, private lawsuits, and higher compliance costs for states. The filing contends that HHS had turned a limited disability statute into a broader mandate touching everything from state health programs to prison systems.
Paxton’s office framed the proposed rollback as a win. In a press release, he said, This victory stops the Biden Administration’s radical attempt to force states to comply, and thanked the administration for reversing what he called an overreach. The comment itself is posted in full as a PDF by the Texas Attorney General's office.
Who opposes it
On the other side, a coalition led by California Attorney General Rob Bonta is urging HHS to slam the brakes. In a separate letter, those states ask the department to withdraw the proposal, extend the comment period, and keep in place the 2024 rule’s protections for transgender people.
In a press release, the California Attorney General's office described the proposal as “yet another attempt by the Trump Administration to dismantle legal protections for transgender Americans” and argued that the 30-day window was too short for meaningful public input on such a sweeping civil-rights question.
Legal and budget risks
Paxton and the Republican attorneys general warn that the 2024 rule would have forced states to stretch already limited disability resources and defend against a surge of lawsuits. Their comment says restoring the original statutory exclusions will “prevent opportunistic litigation” and protect existing state disability programs from being retooled around gender dysphoria claims.
Earlier in 2024, Paxton and other Republican-led states had already gone to court to stop the rule. Reporting on that lawsuit noted that Texas and its allies claimed the changes would hit state agencies with new compliance costs and legal exposure. The Dallas Morning News covered that earlier suit and the states’ argument that the Biden-era regulations would reshape how they fund and administer health and social services.
Health-policy analysts have also tied the latest notice to a broader set of Trump administration regulatory proposals at HHS and the Centers for Medicare and Medicaid Services. Those efforts target certain gender-affirming services for minors and adjust Medicaid funding rules, with potential ripple effects for medical providers and state budgets. KFF has outlined the wider package and its implications.
What's next
With the comment period now closed, HHS will sift through submissions before deciding whether to finalize the rule. If the department proceeds, attorneys general on both sides and civil-rights groups are widely expected to head back to court.
The Federal Register details the next steps in the process, including internal review of the public comments and publication of a final rule if HHS decides the change is justified. Advocacy organizations and legal teams aligned with both Paxton and Bonta say they plan to keep pressing their arguments in lawsuits and any future rounds of public comment as the regulatory fight over transgender protections continues.
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