The Trump administration is facing a legal challenge from a group of federal employees affected by a new policy eliminating coverage for gender-affirming care in the health insurance of federal employees and Postal Service workers[3]. The Office of Personnel Management announced in August 2025 that starting in 2026 it would no longer cover "chemical and surgical modification of an individual's sexual characteristics through medical procedures"[3]. The complaint was filed by the People's Campaign for Equality on behalf of four federal employees from the Department of State, the Department of Health and Human Services, and the Postal Service[3]. One of the affected Postal Service employees has a daughter whose doctors recommended puberty blockers and potentially hormone therapy to treat diagnosed gender dysphoria, which would not be covered under the new policy[3]. The complaint alleges that the ban on coverage of gender-affirming care constitutes sex discrimination and calls for the policy to be repealed[3]. This policy affects more than 10 million federal employees and their dependents[2].