Federal judge sides with Texas in legal showdown over foster care mandates, blocking Biden Administration’s rule on gender identity compliance for funding

Austin, Texas – In a significant legal battle, Texas Attorney General Ken Paxton has emerged victorious against a Biden Administration mandate aimed at integrating specific gender identity policies into the state’s foster care system. The disputed rule, introduced by the U.S. Department of Health and Human Services (HHS), sought to condition federal funding for foster care on the affirmation of a child’s self-declared LGBTQI+ identity. This policy was challenged by Paxton in September 2024, arguing that it unlawfully imposed new standards on foster care providers that conflicted with both state and federal regulations.

The rule in question mandated that agencies receiving Title IV-E and Title IV-B funds ensure that all foster care placements are supportive of the gender identity expressed by the children in their care. It further stipulated penalties for foster care providers who failed to comply, labeling such actions as “retaliation.” Non-compliant state agencies faced the risk of losing crucial federal funding.

However, the federal district court has now ruled in favor of Paxton, stating that the HHS overstepped its statutory bounds by attempting to enforce these requirements nationwide. The court’s decision effectively halts the implementation of the rule, upholding the objection that the federal government lacked the authority to mandate such “experimental and controversial treatments” for children within the foster care system.

Attorney General Paxton welcomed the court’s decision, describing it as “a tremendous victory for Texas families, parental rights, and the rule of law.” He criticized the Biden Administration for attempting to enforce what he termed “radical gender ideology” on vulnerable children, under the threat of withholding federal funds from non-compliant foster care providers.

“I will always fight to protect our values and ensure that Texas children are not used as pawns in the federal government’s social experiments,” Paxton said in a release.

This ruling underscores a continuing national debate over the role of federal regulations in state-managed systems, particularly in areas as sensitive as child welfare and personal identity. The outcome of this case may influence future policies and the balance of power between state and federal authorities regarding the management and funding of foster care services.

To read the court order, click here. Top of Form