A Manhattan hospital system has struck a deal with the Trump administration to stop providing gender-transition care to adolescents and agreed to pay a fine and dedicate $2 million for free medical care to patients who had received those services.
The deal, which was revealed on Friday, resolves an inquiry by federal prosecutors into the Mount Sinai Health System. It was one of several hospital systems across the United States to receive grand jury subpoenas as part of efforts by the Department of Justice to investigate gender-transition treatments for adolescents.
Since early 2025, the Trump administration has sought to put an end to that medical care for adolescents, asserting that the treatments harm impressionable and vulnerable children. Through executive orders, investigations and threats to cut off federal funding, the Trump administration has succeeded in convincing hospitals to close programs that had offered gender-transition treatments to minors.
During the past year, many major U.S. hospital systems have stopped offering a range of treatments, including hormone therapy and puberty blockers, to adolescents seeking to transition.
New York has a significant number of transgender youth, with about 3 percent of 13- to 17-year-olds in the state identifying as transgender, roughly twice the national average, according to one survey.
A number of New York hospitals have built robust transgender health programs, hiring leading surgeons and training new ones. Some had programs for transgender youth.
A news release from the Justice Department did not specify the monetary penalty that Mount Sinai would pay, but said that the hospital would “dedicate $2 million to providing free medical care to individuals suffering harmful consequences of ‘gender affirming care’ they received as children.”
The Justice Department had reached similar deals with a few other hospitals, including some in Texas and Connecticut.
The news release also states that Mount Sinai will stop providing “sex-rejecting procedures on children,” including puberty blockers, cross-sex hormones and surgeries.
“This agreement puts an end to these practices at Mount Sinai and provides meaningful relief for individuals who have already suffered harm,” Attorney General Todd Blanche said.
A Mount Sinai spokeswoman, Lucia Lee, said on Friday afternoon that a statement from the hospital would be forthcoming.
Neither Mount Sinai nor the Justice Department immediately responded to requests for a copy of the agreement.
The Justice Department’s news release characterized Mount Sinai as “cooperative.”
“At all times during the investigation, Mount Sinai remained cooperative, proactive and solution-driven, as evidenced by its multimillion-dollar commitment to detransition care,” the Justice Department release stated. The news release did not describe what the detransition care would entail.
Though the Justice Department has secured settlements with hospitals over gender treatments, its investigative efforts have faced setbacks. Some courts have quashed government subpoenas to hospitals, saying that they had been issued for an “improper purpose,” such as to harass and intimidate.
In June, the Justice Department’s investigation into transgender treatments at Mount Sinai and another major Manhattan hospital, NYU Langone, had appeared to face a significant obstacle.
Earlier that month, transgender adolescents and their families had sued over the Justice Department’s efforts to obtain their medical records from the hospitals.
A federal judge had sided with the families and barred the Justice Department from “seeking, receiving, using” or disseminating any sensitive health information about youth who had received transition treatments at New York City health care institutions.
The Justice Department has said that its investigations nationwide are examining whether doctors or hospitals engaged in fraudulent billing or used dubious diagnosis codes when seeking payment for transgender treatments. Investigators are also examining whether providers or drug companies downplayed or minimized the risks or long-term health consequences of transgender treatments, such as puberty blockers.
In its news release on Friday, the Justice Department did not specify whether it had uncovered violations at Mount Sinai.
Gender-affirming treatments for adolescents are the subject of intense debate around the United States — and the world. Some patients say they experience dysphoria, an intense mismatch between their gender identity and their birth sex, leading to distress. The Trump administration asserts that these children are impressionable and need to be protected because, the administration says, the treatment could harm them.
But some parents say that transgender treatments have dramatically improved their child’s self-confidence and happiness.
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