The initiatives put forth by Kennedy and his team remain in the proposal stage and are not yet legally binding. Before any restrictions become permanent, the federal government must navigate a comprehensive rulemaking process, which includes public commentary and document revisions. These proposals are also expected to encounter legal opposition.

Nevertheless, these proposed regulations could further discourage healthcare providers from offering gender-affirming treatments to minors, with many hospitals already halting such services in anticipation of federal directives.

Virtually all hospitals across the United States are part of the Medicare and Medicaid programs, which are the federal government’s largest healthcare plans, serving seniors, individuals with disabilities, and low-income citizens. Losing access to these crucial payments could pose a significant threat to the financial viability of most U.S. hospitals and healthcare providers.

Additionally, the same funding limitations would extend to the State Children’s Health Insurance Program for services provided to individuals under 19 years of age, as detailed in a federal notice released Thursday morning.

Kennedy further revealed that the HHS Office of Civil Rights intends to propose a regulation that would exclude gender dysphoria from being classified as a disability.

In a related development, the Food and Drug Administration has issued warning notices to a dozen companies that market products like chest-binding vests, which are commonly used by those with gender dysphoria.

Manufacturers include GenderBender LLC of Carson, California and TomboyX of Seattle. The FDA letters state that chest binders can only be legally marketed for FDA-approved medical uses, such as recovery after mastectomy surgery.

Moves contradict advice from medical organisations and transgender advocates

Dr Mehmet Oz, the administrator of the Centres for Medicare and Medicaid Services, on Thursday called transgender treatments “a Band-Aid on a much deeper pathology,” and suggested children with gender dysphoria are “confused, lost and need help.”

Polling shows many Americans agree with the administration’s view of the issue. An Associated Press-NORC Centre for Public Affairs Research survey conducted in May found that about half of US adults approved of how Trump was handling transgender issues.

Chloe Cole, a conservative activist known for speaking about her gender-transition reversal, spoke at the news conference to express appreciation. She said cries for help from her and others in her situation “have finally been heard”.

But the approach contradicts the recommendations of most major US medical organisations, including the American Medical Association, which has urged states not to restrict care for gender dysphoria.

“In an effort to strongarm hospitals into participating in the administration’s anti-LGBTQ agenda, the Trump Administration is forcing health care systems to choose between providing lifesaving care for LGBTQ+ young people and accepting crucial federal funding,” Dr. Jamila Perritt, a Washington-based OB/GYN and president and CEO of Physicians for Reproductive Health, said in a statement.

“This is a lose-lose situation where lives are inevitably on the line. “

Actions build on a larger effort to restrict transgender rights

The announcements build on a wave of actions President Donald Trump, his administration and Republicans in Congress have taken to target the rights of transgender people nationwide.

On his first day in office, Trump signed an executive order that declared the federal government would recognise only two immutable sexes: male and female. He also has signed orders aimed at cutting off federal support for gender transitions for people under age 19 and barring transgender athletes from participating in girls’ and women’s sports.

On Wednesday, a bill that would open transgender health care providers to prison time if they treat people under the age of 18 passed the US House and heads to the Senate. Another bill under consideration in the House on Thursday aims to ban Medicaid coverage for gender-affirming care for children.

Young people who persistently identify as a gender that differs from their sex assigned at birth are first evaluated by a team of professionals. Some may try a social transition, involving changing a hairstyle or pronouns. Some may later also receive hormone-blocking drugs that delay puberty, followed by testosterone or estrogen to bring about the desired physical changes in patients. Surgery is rare for minors.