Federal judge cites SCOTUS Chevron ruling when halting HHS rule on gender identity discrimination

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A federal judge in Mississippi on Wednesday cited a recent Supreme Court ruling when blocking a new Department of Health and Human Services rule, deeming that the Biden administration overstepped in issuing a new rule against gender identity discrimination in healthcare.

The department announced the new rule in May, claiming that the federal law that bans discrimination based on sex in a Affordable Care Act health insurance law also extends to people that are transgender. The rule was set to go into effect on Friday, according to Reuters.

U.S. District Judge Louis Guirola agreed with 15 conservative states that sued the administration in his ruling, stating that the new law exceeded the government’s authority.

“Plaintiffs have demonstrated a substantial likelihood of success on the merits of their claim that HHS exceeded its statutory authority by applying the Bostock holding to Section 1557’s incorporation of Title IX in its May 2024 Rule,” Guirola wrote, per CNN.

“HHS acted unreasonably when it relied on Bostock’s analysis in order to conflate the phrase ‘on the basis of sex’ with the phrase ‘on the basis of gender identity,'” he continued. “Specifically, the Bostock holding did not ‘sweep beyond Title VII to other federal or state laws that prohibit sex discrimination.’”

Guirola also pointed to the Supreme Court’s ruling last week that overturned the “Chevron Deference” precedent, which previously required courts to defer to federal agencies when they create regulations based on ambiguous laws.

The ruling also comes after several federal judges rolled back new rules from the Department of Education, which expanded the definition of sex discrimination to include gender identity and pregnancy at public schools, and included a ban on single-sex bathroom and locker rooms. Those rules, which were expected to take effect in August, have been stopped in 14 states.

The new rules were part of the Biden administration’s efforts to expand protections for transgender Americans. The Biden administration in 2022 instructed federal agencies to ensure transgender people have equal access to health care.