In a decisive move that could reshape how states administer federally funded youth education programs, the U.S. Department of Health and Human Services (HHS) has terminated California’s State Personal Responsibility Education Program (PREP) grants for fiscal years 2023–2025. The action, announced in an August 21 letter from the Administration for Children and Families (ACF), marks a pivotal moment in the federal government’s effort to enforce statutory boundaries and protect program integrity.
Timeline of Events: From Review to Termination
- March 27, 2025: ACF formally requested that California submit all PREP curricula and program materials for a medical accuracy review. This request was made under the terms and conditions of California’s existing grant agreements.
- April 1, 2025: California complied, submitting its materials for review.
- June 20, 2025: ACF issued a warning letter identifying “gender ideology” content—specifically lessons teaching that gender identity is distinct from biological sex—as outside the scope of the PREP statute (42 U.S.C. § 713). California was given 60 days to remove the content and submit revised materials.
- August 19, 2025: California refused to comply, citing prior approval, medical accuracy, statutory relevance, and a challenge to ACF’s enforcement authority.
- August 21, 2025: ACF terminated all three active PREP grants, effective immediately.
PREP is a federally authorized program designed to educate youth on abstinence, contraception, and adulthood preparation topics like financial literacy, healthy relationships, and career readiness. It is not a vehicle for ideological instruction. ACF’s termination letter makes clear: gender ideology content, such as teaching that boys can identify as girls and vice versa, is not supported by the statute and fails the test of “medically accurate” as defined by federal law.
This was a line drawn in the sand. In its August 21 letter, HHS made clear that California’s inclusion of gender ideology in PREP curricula wasn’t a minor deviation. It was a statutory breach.
“The statute does not require, support, or authorize teaching students that gender identity is distinct from biological sex… thus, gender ideology is outside the scope of the authorizing statute.”
Medical Accuracy and Federal Authority
California argued that its content was medically accurate. HHS wasn’t convinced:
“California has not met its statutory obligation to demonstrate that gender ideology is medically accurate… simply makes a conclusory statement.”
That’s not just a rejection—it’s a rebuke. The burden of proof lies with the grantee, and in HHS’s view, California didn’t even come close.
California also leaned heavily on the fact that its materials had previously been approved. But HHS shut that door—firmly:
“While we realize that ACF previously approved gender ideology content… that decision was made in error.”
Translation: past approval doesn’t override present statutory authority.
What’s next?
California must:
- Cease all new obligations under the terminated grants.
- Begin project closeout procedures under 45 C.F.R. § 75.381.
- Submit any pre-August 20 costs for review and potential reimbursement.
- File an appeal within 30 days if it chooses to challenge the termination.
Legal action is likely. California’s August 19 letter signals its intent to contest the federal interpretation of the statute. But unless a court intervenes, the termination stands—and the precedent is set.
This enforcement action sends a clear message: federal funds tied to statutory programs must be used in accordance with congressional intent. States incorporating gender ideology into PREP curricula may now face similar scrutiny.
ACF’s position is unambiguous:
“Please note that this letter does not foreclose ACF from exercising its authority to pursue any other enforcement remedies…”
In other words, the federal government isn’t just pulling funding—it’s signaling readiness to escalate.
This isn’t just about California. It’s about the integrity of federal programs, the role of ideology in taxpayer-funded education, and the responsibility of states to honor the terms of their grants. HHS has acted decisively, and rightly, to uphold the law.
We’ll keep you posted as we’ve likely not heard the end of this story.
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