Texas Children’s Hospital Settles for $10 Million, Creates First U.S. Detransition Clinic

Texas Children’s Hospital in Houston agreed to pay $10 million to the state and to fund a new “detransition clinic.” The clinic must be open and operating by the end of October and will provide free services for the first five years. The settlement also requires the hospital to terminate the medical privileges of five physicians who provided gender-transition care.

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In 2023, Governor Greg Abbott signed Senate Bill 14, which bars puberty blockers and hormone therapies for trans-identifying minors. Later that year, Attorney General Ken Paxton launched an investigation into the hospital’s billing practices. The investigation culminated in the settlement announced on August 5, 2026, after the agreement had been reached in May.

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Texas Children’s Hospital issued a statement calling the settlement a “difficult decision” after a three-year legal battle “wrought with falsehoods and distractions.”

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• Payment: $10 million to the state.

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• Physicians affected: five medical privileges revoked.

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• Clinic funding: free care for patients for five years; operational deadline by the end of October.

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• “Today is a monumental day in the fight to stop the radical transgender movement,” — General Ken Paxton, texas attorney — General Ken Paxton, Texas Attorney General.

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