A viral claim is making the rounds again: that Democrats want taxpayers to pay for transgender surgeries—including for minors—in order to keep Obamacare alive. President Donald Trump brought attention to this recently, saying Senate Democrats are trying to force taxpayers to fund gender surgeries for children as part of their effort to extend Obamacare subsidies. So what’s really going on here? Let’s break down the facts.
First, let’s talk about what these subsidies are. Obamacare subsidies are payments from the federal government that help people afford health insurance plans. These subsidies were made bigger during the pandemic in 2021. Now, Democrats in the Senate want to make those bigger subsidies permanent.
But here’s the catch—those subsidies don’t just help people pay for regular doctor visits or emergency care. In many states, they also go toward insurance plans that are required to cover transgender procedures. That includes things like hormone treatments, surgeries to change someone’s body to match their gender identity, and even surgeries like facial reconstruction or the implantation of testicular prostheses.
According to the Movement Advancement Project, 24 states require insurance companies to cover some or all of these transgender services. For example, Colorado became the first state to include gender-affirming treatments in its list of essential health benefits. That means any health plan sold in the state must cover these procedures. And there was no age limit mentioned in Colorado’s rules, which suggests that minors could be eligible too.
So when people buy these insurance plans on the Obamacare exchange, they’re getting coverage that includes transgender procedures. And because most people on the exchange get subsidies, that means federal taxpayer dollars are helping pay for these surgeries—whether people agree with them or not.
President Trump’s administration tried to stop this in 2024 by changing federal rules. They removed certain transgender surgeries from the list of what insurance plans had to cover. But that move didn’t fully stop taxpayer money from being used. Why? Because states like California and Colorado still require private insurers to cover transgender care. So even if federal rules change, state rules can still keep those services in place. And since federal subsidies still help people buy those state-regulated plans, the money keeps flowing.
California has taken it even further. A new law there requires insurance companies and medical providers to go through training on how to treat transgender people. These training sessions must be led by groups that support transgender causes, and they teach about things like “microaggressions” and “historical oppression.” Critics say this crosses a line, forcing professionals to sit through what feels like political or ideological training, all paid for through Obamacare subsidies backed by federal taxpayers.
So what does this all mean for the bigger debate in Washington? Senate Democrats are tying the future of these bigger Obamacare subsidies to government funding bills. In other words, they’re saying, “We won’t pass a budget unless these subsidies are made permanent.” And with those subsidies come more taxpayer dollars for transgender treatments, even for minors.
This is why President Trump has been speaking out. During his 2024 campaign, he ran ads warning that Democrats were pushing for policies that most Americans don’t agree with—like taxpayer-funded gender surgeries for children. Even Kamala Harris later admitted that those ads hit home with voters.
Right now, Republicans in Congress have a choice. They can agree to extend the enhanced subsidies and, in doing so, keep funding insurance plans that include transgender treatments. Or they can say no and push back against what they see as the government using taxpayer money to promote a radical agenda.
In the end, this isn’t just a debate about health insurance. It’s about what your tax dollars should and shouldn’t be used for. And as the fight over Obamacare subsidies continues, the bigger question remains: Should Americans be forced to pay for procedures they deeply disagree with—especially when it involves children?
That’s the real issue behind the headlines.