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Vermont Lawmakers Introduce Bill to Create Trust Fund Shielding Gender-Affirming Care from Federal Funding Threats
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Vermont lawmakers introduced House Bill H. 576 on January 6, 2026, to create the Affirming Health Care Trust Fund, a state mechanism designed to sustain gender-affirming health care services in response to federal funding pressures. The bill was read for the first time and referred to the House Committee on Health Care on that date.
Sponsored by Representatives Daisy Berbeco of Winooski, Tiffany Bluemle of Burlington, and Troy Headrick of Burlington, the legislation seeks to address gaps in care created by hospitals discontinuing services due to threats against their Medicaid and Medicare funding. The Trump administration has intensified efforts to withhold federal funds from hospitals providing gender-affirming care to transgender youth, prompting over 20 systems nationwide to halt programs, including recent closures in Colorado.
The proposed trust fund, administered by the Vermont State Treasurer, would offer direct financial support to clinics, providers, and nonprofits delivering gender-affirming care outside federal funding streams. It would finance patient costs for those otherwise unable to access treatment, establish new Vermont-based clinics, and cover malpractice and liability insurance for clinicians. Services supported include psychiatric, therapeutic, diagnostic, preventative, rehabilitative, and supportive care, as well as medications affirming an individual's gender identity, explicitly excluding conversion therapy and uninitiated surgical interventions on minors with variations in sex characteristics.
Rep. Daisy Berbeco emphasized the funding instability facing providers: “Over the past year we’ve seen a growing mismatch between the need for affirming health care services and the stability of funding mechanisms supporting them. .. Constituents, providers, and advocates have been clear that uncertainty—especially abrupt gaps or changes in coverage—creates real harm for patients and makes long-term service delivery difficult for providers. The bill is intended to address that instability and support continuity of care. ”
The bill includes safeguards for patient privacy, prohibiting disclosure of identifiable data, provider identities, or award recipients to federal authorities or out-of-state entities, extending beyond typical shield laws. Funding sources could include state appropriations, private donations, grants, and future federal allocations under supportive administrations. If enacted, the fund would activate immediately, with an oversight board convening by August 1, 2026.
LGBTQ+ advocates have welcomed the initiative. Dana Kaplan, Executive Director of Outright Vermont, which supports LGBTQ+ youth aged 13-22, stated: “It’s not been difficult to see the impact that this coordinated, sweeping attack on gender affirming care has had throughout the country. Here in Vermont, we are not immune to the chilling effect it has created. We are hearing from families about the challenges they are facing due to these very threats from the current administration. ” Kaplan added that the bill reassures transgender youth: “Young people need to know that adults have their back and will take action to protect their rights. .. It says, we’re not going to allow hate, extremists, or any abuse of power get between you and your right to access the healthcare you need and deserve to live a healthy and beautiful life. ” She further noted: “By taking steps to ensure access to gender affirming care, these Vermont state leaders are holding up the consensus of health professionals whose work is grounded in research, clinical experience, and most importantly, patient outcomes. ”
This effort aligns with actions in other states, such as Massachusetts allocating $1 million last year for similar clinics, though critics say it falls short of needs amid widespread hospital retreats like those at Children’s Hospital of Los Angeles, Children’s National Hospital in Washington D. C. , and Children’s Wisconsin. Vermont's bill must now progress through committee, both legislative chambers, and secure funding to become operational. Residents can contact legislators via the Vermont General Assembly website to voice support.
