Medicaid stops paying for conversion therapy, protecting vulnerable youth.

What it does

This bill amends Medicaid law to prohibit state Medicaid programs from paying for conversion therapy—practices that attempt to change someone's sexual orientation or gender identity in exchange for money. The bill defines conversion therapy narrowly to exclude legitimate medical care like gender transition support or mental health counseling that accepts the client's identity. Beginning the quarter after enactment, no Medicaid dollars can fund these practices.

Why we flagged it

The bill's operative mechanism is a straightforward prohibition on Medicaid funding for a specific harmful practice. It is a protective measure grounded in public health consensus, not a regulatory carve-out or subsidy.

What the text implies

• The definition of conversion therapy requires 'monetary compensation,' meaning unpaid or volunteer efforts to change sexual orientation or gender identity fall outside the Medicaid prohibition—though state law may still restrict them.
• The carve-out for 'acceptance, support, and understanding' and 'identity exploration' is broad enough to protect legitimate therapeutic counseling, but implementation will depend on how states and providers interpret the boundary between affirming care and conversion practices.
• The bill does not restrict private insurance or out-of-pocket payment for conversion therapy—only Medicaid funding—leaving a pathway for those with other coverage or resources.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill protects vulnerable individuals—particularly low-income youth—from a practice widely condemned by major medical organizations as ineffective and harmful. It restricts Medicaid's use of public funds for a service that causes documented psychological harm, while explicitly preserving legitimate gender-affirming care and mental health support.

Named in the bill

Medicaid, Social Security Act, Section 1902, Section 1903(i), House Committee on Energy and Commerce

Where it stands

41 cosponsors: 41 Democrats.

• Jun 27, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jun 27, 2025 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.