BREAKING: Illinois has teamed up with 11 other states in a lawsuit against the Trump administration, challenging its controversial move to withhold potentially hundreds of billions of dollars in federal grant funding from states that do not comply with its restrictive definitions of sex and gender. This urgent legal action was announced earlier today, amid rising tensions over how gender identity is recognized in federal policies.

The lawsuit centers around an executive order issued by President Donald Trump on the first day of his second term, mandating that federal agencies recognize only a person’s sex assigned at birth. This directive labels self-identification as a “false claim,” effectively excluding those who identify outside the traditional binary framework. States are now being told that failure to adhere to this order could jeopardize vital funding from the U.S. Department of Health and Human Services (HHS) for health education, medical research, and workforce training programs.

Illinois Attorney General Kwame Raoul condemned the directive, stating, “The Trump administration is attempting to hold billions of dollars hostage in an attempt to force states to exclude and discriminate against people who are transgender.” Raoul’s office emphasizes that everyone deserves to live authentically, and the state will continue to fight against what they deem cruel and discriminatory policies.

The lawsuit highlights how the new funding condition not only contradicts established rights under Title IX—which prohibits sex discrimination in federally funded education programs—but also imposes additional, legally questionable requirements on states. The states argue that HHS is exceeding its authority by enforcing this order, which could expose them to civil and criminal liabilities under the False Claims Act.

Currently, Illinois allows individuals to change their sex on birth certificates, signifying a commitment to inclusivity that directly clashes with the Trump administration’s directive. The vagueness of the new order raises significant concerns about compliance, as states contend that clear guidelines are lacking.

The implications of this lawsuit are profound. If successful, it could block the enforcement of HHS’s controversial policy, safeguarding the rights of transgender, intersex, non-binary, and gender-diverse individuals across the nation. The states contend that the administration’s actions reflect an intent to make the denial of these identities official policy.

In a broader context, this lawsuit is just one of several actions Illinois has taken against the Trump administration. Earlier this year, the state joined a different multi-state lawsuit aiming to protect gender-affirming care for young people, further demonstrating its commitment to safeguarding the rights of marginalized communities.

This latest legal challenge is particularly urgent as the Trump administration has a history of threatening to withdraw funding from states that refuse to comply with its policies, especially those led by Democrats. Just last week, the administration cut an estimated $2 billion in funding nationwide for nonprofit organizations that provide crucial health services to vulnerable populations, citing misalignment with its priorities.

As the legal battle unfolds, Illinois and the other states involved are urging the court to deem the HHS policy unlawful and prevent its implementation. The outcome of this lawsuit could have lasting ramifications for federal-state relations and the rights of individuals across the country.

What’s Next: The states are closely monitoring developments, with a court ruling anticipated in the coming weeks. As the situation evolves, stakeholders and advocates will be watching to see how the administration responds, and whether further legal actions will arise in defense of transgender rights.

Stay tuned for updates on this developing story, as the implications reach far beyond Illinois, potentially impacting millions across the nation.