New Act Bans Medicaid Funding for Conversion Therapy, Protecting Low-Income LGBTQ+ Individuals

The Prohibition of Medicaid Funding for Conversion Therapy Act is about making sure public health dollars don’t pay for practices that major medical groups consider harmful. Simply put, this bill stops federal Medicaid funds—and the state matching funds—from being used to pay for “conversion therapy.” This ban kicks in during the first full quarter after the law is enacted.

Where the Public Money Stops

This legislation draws a clear, bright line: if a service is paid for, and its goal is to change someone’s sexual orientation (gay, straight, or bisexual) or gender identity, Medicaid won't cover it (SEC. 2). This includes treatments trying to change behavior, expression, or reduce same-sex attraction. For the millions of low-income Americans and families who rely on Medicaid, this provision acts as a financial shield, preventing them from being steered toward or billed for discredited practices under the guise of covered mental health care.

What the Ban Doesn't Touch

Crucially, the bill is careful about what isn't banned. It explicitly carves out exceptions to ensure that legitimate, affirming care remains covered. For example, if someone is seeking care related to gender transition, or if they need support and counseling that focuses on acceptance, coping, and exploring identity without trying to change who they fundamentally are, those services are still eligible for Medicaid coverage (SEC. 2). This is key because it means the bill protects vulnerable people from harmful practices while safeguarding access to medically necessary and supportive care.

The Real-World Impact on Mental Health Care

Think about a young adult relying on Medicaid for mental health services. Right now, in some places, a provider could potentially bill Medicaid for services aimed at “fixing” their sexual orientation. This bill shuts that down entirely. For mental health professionals, the message is clear: if you are offering therapy, it must be supportive and affirming, not focused on change. Providers who currently rely on Medicaid reimbursement for conversion therapy will need to pivot their practice or lose that funding stream. On the administrative side, the bill updates Section 1903(i) of the Social Security Act, ensuring that if a state somehow tries to pay for conversion therapy anyway, the federal government won't send them a dime to match those costs.

This legislation is highly specific (low vagueness) and addresses a major public health concern by ensuring that taxpayer money is not used to fund services that are often coercive and damaging. By clearly defining “conversion therapy” and explicitly protecting affirming care, the bill focuses public funds on services that genuinely support the well-being of Medicaid enrollees.