The Colorado Supreme Court ruled 5-2 that Children's Hospital Colorado must restart hormone therapy and puberty blockers for transgender minors, overriding the hospital's January decision to pause treatment. The ruling came after four families sued, arguing the suspension violated state anti-discrimination law. Plaintiffs experienced severe mental health impacts, including depression and suicidal thoughts, after suddenly losing access to care.

The hospital had halted treatment fearing loss of federal funds under proposed Trump administration rules. Federal money accounts for roughly $180 million of the hospital's annual budget, with about half its patients relying on Medicaid. Losing this funding would have forced the hospital to stop serving privately insured patients as well.

The decision reflects broader national tensions over transgender healthcare access. While major medical societies endorse these treatments, the Trump administration commissioned a report claiming risks outweigh benefits. An estimated 2.8 million U.S. teens and adults identify as transgender, though few seek medical transition.

The ruling establishes that federal funding threats cannot override state civil rights protections. Children's Hospital Colorado serves approximately 500 transgender patients, many from states where such care is banned. This creates a growing patient base for providers in more permissive jurisdictions.