The Federal Trade Commission says New York's shield law is interfering with its federal investigation into transgender care. A dispute over an FTC subpoena involving a New York hospital has put the law's reach at issue.
A Subpoena Caught Between State and Federal Law
According to a Reuters report, New York's attorney general's office warned a New York hospital against complying with an FTC subpoena. The warning is part of a dispute involving the state's shield law.
Other Federal Scrutiny of Pediatric Care
Separately, an FTC action involving WPATH concerns allegations about the organization's claims on safety, effectiveness and medical necessity. The Justice Department's separate investigation of Mount Sinai involved pediatric care including puberty blockers, hormone therapy and surgical procedures.
That WPATH-focused case dates to mid-2026, when the FTC, joined by Alaska, Iowa, Nebraska and Texas, filed a lawsuit alleging the organization had provided the means for medical providers to make false and unsubstantiated claims to parents in order to sell pediatric medical transition services, according to the Federal Trade Commission. The agency's petition materials describe WPATH's role in producing Standards of Care that articulate a professional consensus on the psychiatric, psychological, medical and surgical management of transgender and gender diverse people, per an FTC filing.
Other Hospital Agreements
Prior agreements also involved Texas Children's Hospital, the Cleveland Clinic Foundation and Connecticut Children's Hospital.
The Justice Department's own public record shows a parallel track of federal pressure on hospitals over pediatric gender-affirming care. The department announced an agreement with Mount Sinai in September that it said resolved an investigation into potential federal-law violations tied to pediatric gender-affirming care.
What Remains Unresolved
Neither Mount Sinai nor the office of New York Attorney General Letitia James has weighed in publicly on the FTC's latest move. Mount Sinai did not immediately respond to a request for comment, and James' office declined to comment, Reuters reported. The fight over the subpoena arrives as the Trump administration pursues broader efforts to curtail access to gender-affirming care nationally, the wire service noted, though it remains to be seen how a court will weigh New York's shield-law protections against the FTC's preemption argument.
New York's attorney general has said the shield law's protections apply to both criminal and civil proceedings and cover subpoenas for deposition testimony, production of evidence, and inspection of premises, according to guidance from the New York Attorney General. How those protections apply to the FTC's subpoena involving a New York hospital remains unresolved.
