2026

Jan 1 (Reuters) – A group of federal government employees on Thursday filed a class action complaint against President Donald Trump’s administration over a new policy that will eliminate coverage for gender-affirming care in federal health insurance programs.

The Human Rights Campaign Foundation made the complaint against the U.S. Office of Personnel Management on behalf of the federal employees as the new policy took effect with the start of the new year. 

OPM in an August letter stated that in 2026 “chemical and surgical modification of an individual’s sex traits through medical interventions” will no longer be covered under health insurance programs for federal employees and U.S. postal workers.

OPM officials could not be reached for immediate comment.

The complaint argues that the policy is discriminatory on the basis of sex. It asks that the policy be rescinded and seeks payment for economic damages and other relief.

If the issue is not resolved with the OPM, the foundation said that plaintiffs will pursue class claims before the Equal Employment Opportunity Commission and potentially pursue a class action lawsuit in federal court.

A group of Democratic state attorneys general last month sued the Trump administration to block proposed rules that would cut children’s access to gender-affirming care, the latest court battle over Trump’s efforts to eliminate legal protections for transgender people.

U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. has proposed rules that would bar hospitals that provide gender-affirming care to children from Medicaid and Medicare and prohibit the Children’s Health Insurance Program from paying for it.

(Reporting by Karen Brettell in New York; editing by Scott Malone and Nick Zieminski)

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By Maria Tsvetkova

NEW YORK, Jan 1 (Reuters) – Democrat Zohran Mamdani was sworn in as New York City’s mayor in the first minutes of the New Year on Thursday at the historic City Hall subway station, kicking off a term that will be closely watched by both liberal backers and conservative opponents.

Mamdani, a member of his party’s left-wing democratic socialist faction, was elected last November in a prominent victory that could influence how Democrats approach this year’s midterm elections that will determine control of the U.S. Congress.

The 34-year-old campaigned heavily on cost-of-living issues and was sharply critical of Republican President Donald Trump, whose approval rating has fallen over the past year amid economic concerns.

Many of New York’s 8 million residents – some with hope, some with trepidation – expect him to be a disruptive political force.

SWORN IN ON A DECOMMISSIONED SUBWAY PLATFORM

Mamdani, the city’s first Muslim mayor, chose the subway station for his swearing in to reflect his commitment to New York workers who keep the city running each day, his transition team said. The station was decommissioned decades ago and is accessible only a few times a year through guided tours.

“Happy New Year to New Yorkers, both inside this tunnel and above,” said Mamdani, who took the oath with his wife Rama Duwaji by his side. “This is truly an honor and a privilege of a lifetime.”

Hours after the swearing in, the lead group tasked with electing Republicans to the U.S. House of Representatives sought to portray Mamdani as a “radical socialist.”

“Every time Mamdani opens his mouth or swipes his pen, he tattoos the Democrat Party’s failures onto every House Democrat facing voters in 2026,” spokesperson Mike Marinella said in a statement that signaled the sizable role Mamdani is likely to play on the national campaign stage.

To avoid any ambiguity about who is in charge of America’s most populous city, it has become tradition to hold a small swearing-in just after midnight to kick off the four-year term.

The official oath-taking was to be followed by a more public ceremony in the afternoon.

HISTORIC SITE

Mamdani, a former state lawmaker, promised a freeze on rents and free buses and childcare, building a campaign around affordability issues that some have seen as a path forward for the Democratic Party around the country ahead of November midterm elections.

Dean Fuleihan, the incoming deputy mayor, told the Financial Times that Mamdani will move ahead with plans to increase taxes on millionaires to pay for his campaign promises and balance New York’s budget. He added that he doesn’t expect rich people to leave the city as a result of potentially higher taxes.

New York Governor Kathy Hochul has said she opposes raising personal income taxes but is considering raising corporate taxes to pay for a potential budget shortfall amid federal cuts.

In one early reversal, Mamdani said on Wednesday that he would no longer seek to end mayoral control of New York City’s public school system, the largest in the U.S., naming veteran educator Kamar Samuels as chancellor.

BACKING FROM ATTORNEY GENERAL

Mamdani inspired a record-breaking turnout of more than 2 million voters and took 50% of the vote in November, nearly 10 points ahead of Andrew Cuomo running as an independent and well ahead of Republican Curtis Sliwa.

New York State Attorney General Letitia James was among his earliest prominent backers. During the first administration of President Donald Trump, James began investigating his business practices in New York, resulting in a judge finding in 2024 that Trump fraudulently overstated his net worth to dupe lenders.

The Trump administration has targeted James during his second term, accusing her of mortgage fraud. James has denied wrongdoing.

Grant Reeher, a Syracuse University political science professor, said James’ role in the inauguration would send a message to core supporters that Mamdani is “going to be independent of the president.”

INAUGURATION OF A NEW ERA

The Uganda-born Mamdani has been a sharp critic of Trump on issues such as immigration and said his differences with the president were numerous after a warm White House meeting.

Plans for Mamdani’s public inauguration later on Thursday include a ceremony on City Hall’s steps and a program of music and speeches in front of 4,000 guests gathered in City Hall Plaza. In addition, people will be able to watch a livestream of what Mamdani’s team has dubbed the “Inauguration of a New Era” in free viewing areas set up along Broadway.

Two prominent progressives from Congress will play a role in Mamdani’s swearing-in: U.S. Senator Bernie Sanders of Vermont, whom Mamdani calls his inspiration, will preside over the ceremony. Liberal Democratic U.S. Representative Alexandria Ocasio-Cortez is also on the agenda.

Mamdani raised $2.6 million for the transition and celebrations from nearly 30,000 contributors, more than other mayors on record this century, both by the total and single donations, according to official campaign data that presents disclosures of inaugural expenses beginning with Michael Bloomberg’s first term in 2001.

As mayor, Mamdani will move from his one-bedroom Astoria apartment, protected from sharp price hikes by the city rent-stabilization program, to Gracie Mansion, the official residence of New York City mayors on Manhattan’s upscale Upper East Side.

Bankers and others in New York, the nation’s financial capital, had expressed concern about Mamdani, but since his election many have explored how to work with him. 

(Reporting by Maria Tsvetkova; Writing by Ted Hesson; Editing by Donna Bryson, Nick Zieminski and Frances Kerry)

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