AUSTIN, TEXAS — Texas Attorney General Ken Paxton has announced a final legal victory over a federal rule introduced under the Biden Administration that would have required foster care providers to accommodate and affirm the self-identified gender identity of children in their care. The rule has now been vacated in its entirety, following a court-approved agreement between the State of Texas and the U.S. Department of Health and Human Services (HHS).
In a strongly worded statement, Paxton hailed the outcome as a major win for the state and its child welfare system.
“Biden’s attack on Texas’s foster care system, families, and laws has been totally defeated,” said Paxton. “This victory will protect vulnerable children from dangerous and radical ‘gender ideology.’ Thank you to the Trump Administration for agreeing with us that this rule was unlawful and needed to be completely rejected.”
The now-overturned regulation, issued by HHS in 2023, would have tied federal funding under Title IV-E and Title IV-B of the Social Security Act to state compliance with policies affirming the gender identity of LGBTQI+ youth in foster care. According to the rule, foster care placements that failed to support a child’s stated identity could be considered noncompliant or even retaliatory—resulting in the loss of funding for nonconforming agencies.
Paxton originally filed suit in September 2024 against HHS Secretary Xavier Becerra and other federal officials, arguing that the regulation unlawfully imposed ideological mandates on Texas’s child welfare system and infringed upon state sovereignty. In March 2025, a federal court granted a nationwide stay, temporarily halting the rule’s enforcement.
With the final judgment now in place, the rule is permanently rescinded, marking a complete rollback of the policy.
The case adds to a series of high-profile legal challenges Paxton has pursued against Biden Administration policies that intersect with state authority, federal funding conditions, and social issues such as gender identity and education.
Supporters of the rule had argued it was necessary to protect LGBTQI+ youth—who are disproportionately represented in foster care—from discrimination and harm. Critics, including Paxton, contended it constituted federal overreach and imposed values at odds with Texas law and family policies.
