Background: In May 2024, the Biden Administration’s Department of Health and Human Services (DHHS) finalized regulations adding “gender dysphoria” to the definition of “disability” in Section 504 of the Rehabilitation Act and the Americans with Disabilities Act. These regulations also imposed ill-defined requirements on states that went well beyond existing law.  

Concerned about the impact these new regulations would have on Utah children and existing state programs, and the substantial costs of compliance, Utah joined a lawsuit in September 2024. The lawsuit argued that the regulations exceeded DHHS’s authority granted by Congress and would place nearly impossible burdens and substantial costs on Utah. Failure to comply with the Biden DHHS’s new regulations and policy preferences would have put the state at risk of losing all federal funding, not just disability related federal funds. Utah could not afford to let this policy go unchallenged. 

Fortunately, the case is now paused while the newly inaugurated Trump Administration reviews the regulations.  

What is Section 504? 

Section 504 is part of the Rehabilitation Act of 1973. This important law protects people with disabilities in federally funded programs from discrimination. Employers are required under the law to reasonably accommodate disabilities.  

Employers and organizations that receive federal funds, like colleges, universities, and hospitals, are prohibited from excluding people with disabilities from participating in programs or receiving services because of this law. It also requires schools to provide students with disabilities a “free appropriate public education.”  

What is the September 2024 lawsuit about? 

In May 2024, the Biden Administration’s Department of Health and Human Services (DHHS) finalized regulations that added “gender dysphoria” as a covered disability under Section 504 and the Americans with Disabilities Act.  

DHHS made these regulations through the federal rulemaking process. Congress did not pass a law adding “gender dysphoria” as a covered disability. 

The lawsuit argues these regulations are unlawful because DHHS exceeded the authority Congress granted it in establishing these regulations. States also faced high costs of compliance and the Biden Administration’s unlawful regulations would jeopardize federal funding if states did not comply with the regulations.  

Why did Utah join the lawsuit? 

These regulations could require public schools to allow boys to use girls’ bathrooms and locker rooms and allow for males to compete in girls’ and women’s sports. 

If states did not comply with these regulations, then they would risk losing their federal funding. 

Where does the lawsuit stand? 

The lawsuit is paused while the Trump Administration reviews the regulations.  

What about claims that Count 3 of the lawsuit that seeks to repeal Section 504? 

The Biden Administration said that Section 504 gives DHHS the power to treat gender dysphoria as a covered disability.  

Utah and 16 other states argue that the Biden Administration is wrong about this. The lawsuit argues that states should not be forced to treat gender dysphoria as a disability in order to comply with Section 504.

When understood in context, Count 3 is a very limited claim. A ruling “declaring Section 504 unconstitutional” would not revoke the existing benefits, programs, and accommodations this law provides. Instead, in the context of the lawsuit, it would mean DHHS could not threaten to revoke funding from states that do not comply with the Biden Administration’s regulations.  

Again, this is a very limited claim that would not impact Section 504 benefits, programs, and accommodations. Those benefits would continue in the same way they were before the ruling. What would happen is states would no longer have the threat of losing their federal funding if they did not comply with the unlawful Biden-era regulations.  

The Utah Office of the Attorney General (OAG) and Attorney General Derek Brown fully support the benefits and services provided by Section 504.  

Utah’s concern is squarely about the unlawful regulations from the Biden Administration. If the regulations were to be enforced, Utah would risk losing its federal funds that actively help Utah children in need.  

Utah joined the lawsuit to prevent that risk. Section 504 has been a law on the books for the last 52 years. The states only sued after May 2024 when the Biden Administration finalized the regulations, showing the concern is about the unlawful regulations. Then, when President Donald Trump took office, the states agreed to pause the case, believing the Trump Administration would resolve the issue.

This makes it clear that the states’ concerns are squarely about the unlawful regulations, not about the benefits, accommodations, and programs Section 504 provides.  The OAG and Attorney General Derek Brown fully support these benefits and accommodations.

What resolution is the lawsuit seeking? 

Utah and the 16 other states want to prevent the federal government from withholding federal funds if states do not comply with the unlawful rule that added gender dysphoria as a covered disability.  

The lawsuit does not seek the repeal of Section 504. It also does not seek any stop to the current benefits and accommodations Section 504 offers students.  

Next steps

The OAG believes the Department of Justice’s new leadership will soon agree to vacate the unlawful regulations. Importantly, Section 504’s existing benefits and protections have not been affected by the lawsuit, nor will they be by its expected resolution. Section 504’s benefits will remain to help and protect students who need them. Section 504 is an important law that helps many children in Utah. And the OAG supports Section 504 accommodations for Utah students who need these services. 

“I am committed to protecting Section 504, which helps so many children in the state. Utah joined the lawsuit before I took office to challenge an unlawful regulation from the Biden Administration, adding gender dysphoria as a covered disability under Section 504,” said Attorney General Derek Brown. “The case is paused and I believe that the Trump Administration will soon withdraw the regulation. For that reason, I do not believe there is a risk Section 504 will be invalidated.”