On Monday the Colorado Supreme Court, by a wide 5-2 margin, ordered a Colorado children’s hospital to resume transgender treatments and surgeries on minors based on state law, even though the decision could force the hospital to lose its federal funding. The Trump Administration has taken strong action against the transgender movement, yet it marches on.

Last December the Trump administration threatened to withhold federal funding from facilities that provide transgender treatment to children, but a Biden-appointed federal judge in Oregon named Mustafa T. Kasubhai blocked that rule. Children’s Hospital Colorado had wisely suspended its program of applying hormonal treatments and puberty blockers to children due to the threatened loss of funding.

A lower court upheld the hospital’s decision against a legal challenge. Children’s hospitals depend heavily on federal funding, including their services under Medicaid, and thus ordering the hospital to continue with transgender treatment would do more harm than good.

The practice of medicine is historically regulated by state law, but since health care providers receive billions of dollars of federal funding, the Trump Administration said it would cut federal funding from facilities that continue to perform harmful procedures aimed at altering a child’s gender. Recently the American Medical Association and the American Society of Plastic Surgeons reversed their........

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