Texas Children’s Hospital Agrees to $10M Payment and New Clinic in Settlement With Texas Over 2023 Gender Care Law

Texas Children’s Hospital has agreed to pay the state of Texas $10 million and establish the country’s first detransition clinic as part of a settlement announced May 15, 2026, by Attorney General Ken Paxton. The hospital will fund all services at the clinic for its first five years, during which care will be provided at no cost to patients who previously received gender-affirming interventions.

According to the settlement, the clinic will focus on medical care to address and reverse effects of such prior treatments.

As part of the agreement, Texas Children’s Hospital will cease providing puberty blockers, hormonal therapy or surgeries to minors that align with a gender identity different from their biological sex. The settlement also requires the hospital to terminate five physicians involved in its former gender care program.

Paxton’s office stated that an investigation determined the hospital had violated the state’s 2023 law banning health providers from facilitating gender-affirming medical care for minors through false billing practices.

The 2023 Texas law prohibits hormonal therapy and gender-affirming surgery for children. ” A Texas federal prosecutor issued subpoenas to several medical institutions, including a major hospital network in New York City, seeking records on minor patients who received gender-affirming care over the preceding six years.

In a statement, Texas Children’s Hospital said “all reviews and investigations continue to support the facts that it has been compliant with all laws” and continued to deny wrongdoing. The hospital has not publicly identified the five physicians required to be terminated under the settlement. No court ruling on the underlying allegations was issued prior to the settlement.

The settlement does not include any admission of liability by the hospital.