Ken Paxton Delivers Crushing Blow to Radical Transgender Agenda in Texas

Texas Attorney General Ken Paxton announced a fraud settlement with Texas Children’s Hospital that requires the Houston-area hospital to pay $10 million and help establish what his office described as the first detransition clinic in the United States, as reported by Townhall.

The settlement centers on allegations that Texas Children’s Hospital improperly billed Texas Medicaid for interventions tied to gender transition procedures.

According to Paxton’s office, the hospital was accused of “billing Texas Medicaid for unallowable and illegal ‘gender-transition’ interventions, including by using false diagnosis codes.”

BREAKING: I just made history by securing a landmark healthcare fraud settlement that creates the nation’s first-ever Detransition Clinic and secures $10 million from Texas Children’s Hospital for “transitioning” kids. pic.twitter.com/EnL5F7JMlY

— Attorney General Ken Paxton (@KenPaxtonTX) May 15, 2026

The agreement also secured the terminations and revocation of credentials for five Texas doctors who performed transition interventions, according to the announcement from Paxton’s office.

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“Today is a monumental day in the fight to stop the radical transgender movement,” said Paxton in a press release. “This historic settlement reflects an institutional and fundamental cultural shift away from radical ‘gender’ ideology. In addition to helping establish the first-ever Detransition Clinic and securing millions, this settlement will ensure that the deranged child mutilators who hurt our kids are fired and held accountable.”

Paxton’s office said the settlement will also provide detransition services at no cost for the first five years of the clinic’s operation.

The new clinic will be created as part of the settlement terms and will focus on individuals seeking detransition-related services.

The announcement marks a major development in Texas’ ongoing legal and political battles over transgender medical interventions involving minors.

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Paxton has made the issue a central part of his enforcement agenda as attorney general, targeting hospitals and medical providers over whether such procedures complied with state law and Medicaid rules.

The settlement follows previous scrutiny of Texas Children’s Hospital and its handling of medical services connected to minors and gender-related care.

Paxton’s office framed the agreement as both a financial penalty and a policy shift, pointing to the clinic’s creation and the action against five doctors as key parts of the resolution.

The $10 million payment will be made by Texas Children’s Hospital under the fraud settlement.

The allegations involved the use of diagnosis codes tied to Medicaid billing, with Paxton’s office saying the codes were used for interventions that were not allowable under Texas Medicaid rules.

The timing of the announcement also comes as Paxton prepares for a U.S. Senate race in Texas against incumbent Sen. John Cornyn. Early voting is scheduled to open Monday, May 18.

BREAKING: Texas AG Ken Paxton secured a MAJOR settlement victory against Texas Children’s Hospital, which requires them to open a detransition clinic and pay $10 million for illegally performing gender-based surgical and chemical castrations.BIG WIN pic.twitter.com/pip79SHE1F

— Libs of TikTok (@libsoftiktok) May 15, 2026

Paxton’s campaign against Cornyn has drawn attention from conservatives in Texas and nationwide, and the settlement gives the attorney general another high-profile action tied to one of the most contested social issues in the country.

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