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Watchdog group says Democrats mislead on GOP gender transition funding ban

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After House Republicans passed reconciliation language banning taxpayer funds from paying for sex change treatments, Democrats began using language to drum up opposition that conservative watchdog group the American Principles Project says is meant “to confuse people and make it sound like we’re trying to ban normal healthcare, medically necessary healthcare.”

The House-passed version of the One Big Beautiful Bill Act includes provisions that prohibit federal Medicaid and Affordable Care Act funding from being spent on “gender transition procedures for any age” in all 50 states. 

In response, Democrats and left-wing groups have begun claiming the GOP’s spending package seeks to eliminate “medically-necessary care.” 

However, according to APP President Terry Schilling, “it’s a lie” and an effort to combat the prevailing notion among Americans that taxpayer funds should not be paying for transgender procedures. 

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“They’re deliberately obfuscating here, and it’s because they don’t have any good arguments,” Schilling told Fox News Digital. “We shouldn’t be paying for any cosmetic sex change procedures with our tax dollars, and that’s what we’re cutting here. 

“But they’re introducing and now ramping up these highly weaponized and high-powered words to confuse people and make it sound like we’re trying to ban normal healthcare, medically necessary healthcare.”

Trans activist with sign outside state capitol

A transgender activist poses for a photograph after a rally where hundreds gathered in support of transgender youth at the Utah State Capitol in 2023.  (Rick Bowmer)

After Republicans in the House of Representatives passed their version of the GOP spending package last month, the Congressional Equality Caucus complained that “Congress should be working to make healthcare more affordable – not banning coverage of medically necessary care.” 

“House Republicans changed a previous anti-trans provision so it now cuts off federal Medicaid and Affordable Care Act funding for medically-necessary care for ALL transgender people — no matter their age,” a press release from the pro-trans Human Rights Campaign said after the House passed its spending bill.

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gop cuts kill signs, left; transgender flag, right

Debate heats up over a bill prohibiting Medicaid and ACA funding for gender transition as conservatives and progressives clash on “medically necessary care.” (Getty Images)

According to APP’s Schilling, arguments that Republicans are taking away “medically necessary” healthcare from anyone are “just not true.”   

To make his point, APP’s Schilling pointed to one of the left’s frequent sources for transgender medical recommendations, the World Professional Association for Transgender Health (WPATH). Schilling pointed out that WPATH’s guidelines and standards explicitly state there is no “one-size-fits-all approach” to treating individuals with gender dysphoria.

“These are not medically necessary [treatments]. It’s a lie. These are cosmetic,” Schilling argued. “If you look at WPATH, even according to their own standards, transgender-identifying people don’t actually have to medically transition. They say there’s no one size fits all. Well, I’m sorry, but medically necessary means you need it in order to survive. You need it for your health. And they’re saying in their own writings that it’s not medically necessary, that it’s not a one-size-fits-all.”

Schilling added that they’re “arguing out of both sides of their mouth.” 

“We’re calling out the transgender industry, and we’re trying to stop them from confusing even more people as we pass a very, very good and important bill,” he said.

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In a statement to Fox News Digital, the Human Rights Campaign argued “gender-affirming care” is considered “best practice” and “evidence-based” by every major medical association in the country, noting that studies have shown it significantly improves mental health outcomes for transgender youth.

“Healthcare decisions should be made by patients, families, and doctors — not the American Principles Project,” HRC said.

trans rights protesters with signs

Protesters fill the Iowa Capitol to denounce a bill that would strip the state civil rights code of protections based on gender identity Feb. 27, 2025, in Des Moines, Iowa. (AP Photo/Charlie Neibergall)

Schilling said he has run numerous polls and focus groups about whether Americans agree with taxpayer funds supporting individuals’ gender transitions, and he told Fox News Digital that the overwhelming sentiment from people across the political spectrum is that they should not.

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“Here’s where Americans are at,” Schilling said. “They want to ban the procedures for anyone under 18. And, anyone over 18, they want you to pay for it yourself. That’s where they’re at, and that’s where [APP is] at, and that’s where Donald Trump is at. That’s where Republicans in the House and Senate are at.”

The Congressional Equality Caucus did not respond to requests for comment on this article. 

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