Five anonymous federal employees have sued the Trump administration over a health insurance policy that bars federal plans from covering gender-affirming care, launching a new legal fight over whether the exclusion violates workplace civil rights law. The policy took effect in January and reaches employees, retirees and dependents enrolled in federal health programs.
The proposed class action, Doe v. Kupor, was filed in the U.S. District Court for the District of Columbia and argues that the coverage exclusion discriminates on the basis of sex in violation of Title VII of the Civil Rights Act of 1964. The plaintiffs had first filed an internal complaint with the Office of Personnel Management, a required step before going to court, according to Reuters.
The 2026 policy applies to the Federal Employees Health Benefits and Postal Service Health Benefits programs. An OPM-posted plan brochure says medical, surgical and prescription drug services related to “sex-trait modification” for diagnosed gender dysphoria are no longer covered, while mental and behavioral health services remain available.
The potential reach is substantial, although the number of affected people is an estimate rather than a government headcount. A July brief from the Williams Institute estimates that at least 39,400 transgender people are covered by FEHB, with a middle estimate of 45,650 and a high estimate of 57,800.
Federal Coverage Rules Could Tighten Further
The lawsuit also arrives as OPM prepares the next round of federal health plan rules. In a March carrier letter, the agency instructed insurers that beginning with the 2027 plan year they must remove exceptions that had allowed some people already undergoing hormone or surgical treatment to continue receiving coverage, although counseling for possible or diagnosed gender dysphoria must still be covered, according to OPM guidance.
The plaintiffs say the exclusion targets current and former transgender or gender-nonconforming employees and their dependents by denying coverage for care that may be available under the same plans for other medical purposes. The administration’s legal position will be tested against the government’s authority to set benefit terms and against Title VII’s protections for the terms, conditions and privileges of employment.
The Case Follows Earlier Administrative Complaints
The Human Rights Campaign, which represents the workers, has described the litigation as a proposed class action for federal employees and dependents whose claims have been or will be denied because of the OPM policy. Its case page says the matter began with administrative complaints and identifies the legal team representing the proposed class.
The administration has already faced an internal civil rights challenge to the policy, and the Equal Employment Opportunity Commission previously rejected arguments that OPM lacked authority to limit coverage, Reuters reported. That earlier decision cited a 2025 Supreme Court ruling involving Tennessee’s restrictions on gender-affirming care for minors, but the new lawsuit focuses on insurance benefits for federal workers and their families.
