$40 Trillion in Debt, Layoffs at My Kids' School, and Billions for Gender Identity

By Ryan Thompson | 2026-10-24

The United States is more than $40.4 trillion in debt. That's the Treasury's own number as of October 22, 2026. Every child in my house was born owing a share of it.

At the same time, my children's school district, Eugene School District 4J, sent layoff notices to 177 people this year: 102 teachers and licensed staff, 66 classified employees and 9 managers. It cut 265 full-time positions in all. Now the district says it's facing another $30 million to $35.5 million hole for 2027–28, and the superintendent won't promise classrooms will be spared.

So where did the money go?

Billions, documented, for gender identity

Over the last decade, governments in this country spent at least $1.45 billion in taxpayer money on programs built specifically around sexual orientation and gender identity. Every dollar of that has a source link. Count what isn't published, and the likely figure is $3.3 billion, and it could be as high as $5.5 billion.

Here's some of what we could prove:

• $613 million in NIH research grants with sexual- or gender-minority terms in the title, plus another $351 million in HIV studies limited by title to men who have sex with men.
• $62.7 million for a dedicated LGBTQ "Press 3" option on the 988 suicide line in two years.
• $52 million for gender-transition care in the military.
• $141 million in state Medicaid claims for gender transition, and that's just from the states that published a number.
• $96 million from California, $53 million from Illinois and nearly $50 million over the past decade from my own state of Oregon.

None of this counts the $3.4 billion in federal grants that list LGBTQ people among their target groups, or the billions in HIV spending. Those were left out on purpose so the numbers can't be called inflated.

And then we shipped it overseas

As if spending it here wasn't enough, we exported it. At least $154 million went into LGBTQ programs abroad through the State Department and USAID. In just two years, FY2022 and FY2023, Congress gave the State Department's Global Equality Fund $40 million and USAID's LGBTQI+ protection line another $35 million. PEPFAR, the HIV program, tagged $15 million more for transgender people, which brings the total we found abroad to $168.6 million. Another $749 million of its "key population" money was never broken down by group, and our estimate puts up to $289 million of it toward the same groups.

Think about that. A country $40 trillion in the hole borrowed money to pay for identity programs in other people's countries.

Put it next to the classroom

4J's cuts this year saved $27.7 million and eliminated 265 positions. That works out to about $105,000 per position.

• The 988 "Press 3" line alone, at $62.7 million, would cover roughly 600 of those positions.
• The $75 million that Congress sent to two foreign LGBTQ funds in two years is nearly three times what 4J saved by gutting its staff.
• Oregon spent nearly $50 million on identity programs over the past decade, more than 4J's entire $44.1 million budget gap this year.

Meanwhile, fewer than half of 4J's students can read and write at grade level, and barely more than a third are proficient in math.

This is how a country goes broke

Nobody is going to fix a $40 trillion debt with one budget line. But this is exactly how you get there: one "small" grant at a time, one program nobody votes on directly, one foreign fund nobody back home ever hears about. Every one of them gets defended as a rounding error. Added up, the rounding errors come to billions.

Families in Eugene are watching teachers get pink slips. They're told there's no money. There's money. It's just going to the wrong places.

It's time to rein it in. Washington should end foreign funding for identity programs, stop paying for gender-transition procedures through Medicaid, the military and federal health plans, and put every identity grant up for an open vote. Oregon should publish what it spends before it asks parents for another dime. And 4J's board should answer one question before it hands out the next round of layoff notices: what is it spending on identity programming, and why does that come before the teachers?

The research: what we found, and what we estimated

The numbers above come from a sourced nationwide study of FY2016–FY2026. The full report (PDF) has every line item. Found money and estimates are kept in separate columns. The middle estimate is about $3.3 billion.

The full range

USAID and foreign aid

Foreign aid for LGBTQ and gender-identity programs ran from $169M (found) to as much as $1,091M for FY2016–2026, with a middle estimate of $202M. These figures are already part of the federal totals and the full-range table, so they are not added a second time. The $168.6M of found money is inside the verifiable floor. The foreign estimate lines add $0 in the low case, $34M in the middle and about $693M in the high case. The $228.7M of shared or borderline awards counts only toward the verifiable maximum.

By year, $M (high estimates include PEPFAR money not split by group):

Found money. State and USAID awards come from USAspending.gov, using the full transaction history of every LGBTQ-titled award. For FY2020 through FY2023, the figures use the amounts Congress wrote into the budget instead: the Global Equality Fund, USAID's LGBTQI+ line and the special envoy got $12.75M in FY2020, $16.5M in FY2021, $25.5M in FY2022 and $50.5M in FY2023. PEPFAR transgender money comes from the State Department's key-population report to Congress. FY2025 isn't zero: USAspending shows $6.96M obligated on LGBTQ-titled rights awards in FY2025, including Outright International ($2.38M) and the American Bar Association's SHIELD program ($2.0M). USAID was folded into the State Department on July 1, 2025, and spending falls to nearly zero in FY2026.

Global Equality Fund, FY2016–19 (ESTIMATE). Congress set no budget line for these years, and the fund's awards barely appear in USAspending. The middle case uses $7.6M a year, the amount the US sent through the fund in 2014. The high case uses $10.9M a year, the fund's total awards from all donors in 2015. The Obama White House said the fund had allocated more than $30M from December 2011 to mid-2016.

State and USAID, FY2024–25, with no budget line (ESTIMATE). The FY2024 spending bill has no LGBTQ line. The middle case is the State Department's $2.1M FY2024 Global Equality Fund grant notice. The high case assumes FY2024 spending stayed at the FY2023 level ($50.5M), minus what was found, plus $2.1M for FY2025.

PEPFAR money not split by group (ESTIMATE, high case only). PEPFAR spent $749M on "key populations" in FY2021–2024 without saying which group got it. In FY2023, gay and bisexual men plus transgender people received 38.6% of the key-population money that was split by group, so the high case applies that share: $289.2M. FY2016–2020 uses the same share of PEPFAR's key-population spending ($115.4M in FY2018 and $111.0M in FY2019, PMC8242967; other years use the FY2018–19 average), less the HIV awards already counted in the maximum, for $168.9M. This money also went to sex workers, drug users and prisoners, and PEPFAR doesn't publish the split, so it isn't in the low or middle case.

UN agencies and the Global Fund (ESTIMATE, high case only). The US pays up to 33% of the Global Fund by law, and the Global Fund spent $30.3M in 2019, $45.2M in 2020 and $145.3M in 2021–2023 on programs for men who have sex with men, plus $2.7M, $4.8M and $23.3M for transgender people. A 33% share gives $152.8M over the period. This is the biggest single guess in the foreign section. For UNAIDS, the US contribution ($45M a year through FY2021, $50M a year in FY2022–24, nothing in FY2025, according to UNAIDS's audited financial reports and its 2025 update, which says the "US$ 50 million from the US for 2025 was not secured") times 5.72%, the key-population share of UNAIDS's total core funding, times 38.6%, gives $9.3M. The UN's expert on sexual orientation and gender identity costs $718,600 a year under the UN's 2025 cost statement (A/HRC/59/L.2), and the US pays 22% of the UN regular budget, about $0.16M a year. The 2025 cost is used as a stand-in for earlier years.

Shared or borderline awards (verifiable maximum only). These are $5.3M in refugee awards for LGBTQI people (FY2022–23), $55.4M in HIV awards that name LGBT people, men who have sex with men or transgender people, $4.4M in awards that list LGBTQI people among several groups, and $163.6M in PEPFAR money tagged for men who have sex with men (FY2021–24).

Not counted. The LGBTI Global Development Partnership raised $11M over four years from all partners. USAID's own share was never published, and its awards to partner groups (Astraea, the NGLCC Foundation and the Victory Institute) are already in the found money. UN Free & Equal lists the US as a donor but publishes no amount. No US money was found in the World Bank's sexual-orientation trust funds.

Watchdog counts land inside this range. American Principles Project counted about $18M in USAID grants plus $31M in USAID contracts for "gender ideology" in FY2021–2024. Most of the White House's 2025 USAID examples, such as the Guatemala and Colombia items, turned out to be State Department awards, or the claims were disputed.

The federal government: $1.09 billion documented, peaking in 2023

Washington is the largest single payer. Federal awards whose titles or recipients are specifically LGBTQ, together with dedicated programs, came to $1.09 billion from FY2016 to FY2026. That counts only what we could prove.

• NIH research grants: $613 million, not counting another $351 million in HIV studies limited by title to men who have sex with men. NIH's own office counted far more "sexual and gender minority" research, then stopped publishing the number and deleted the category in March 2025.
• Other domestic grants and contracts: $195 million, from SAMHSA, CDC, the Justice Department, HUD, HRSA and others. Examples include a $1.5 million federal prison contract for a "transgender programming curriculum."
• Foreign programs: $154 million, through the State Department's Global Equality Fund and USAID. U.S. taxpayers funded LGBTQ advocacy overseas while American schools cut staff.
• The 988 suicide line's "Press 3" LGBTQ youth option: $62.7 million in FY2023 and FY2024 alone.
• Military gender-transition care: $52.1 million for about 4,240 service members from 2015 to 2024.
• PEPFAR money tagged for transgender people: $15 million, plus $1.65 million for federal prison hormones and surgery.

Documented federal spending was $71 million in FY2016. It peaked at $258 million in FY2023, more than three and a half times higher, before the 2025 grant terminations brought it down.

On top of that, $3.41 billion in federal grants listed LGBTQ people as one of several target groups. We did not count those in full. Only a stated share appears in the estimates.

The states: Medicaid leads the bill

State governments add at least $354 million in documented spending. The biggest driver is Medicaid paying for gender-transition drugs and surgery:

• Illinois: $40.8 million (2018 to September 2023), including $14.3 million for patients 17 and under
• Oregon: $30.0 million (2018 to 2022)
• Washington: $27.1 million (2018 to September 2023), including $5.8 million for minors
• Virginia: $13.9 million (2020 to 2022)
• Maryland: $11.8 million, and Nevada: $10.1 million

California is the largest state spender in our records at $95.8 million. That includes a dedicated "Transgender Wellness and Equity Fund," $10 million for LGBTQ community centers, $13.4 million a year to cover state-mandated benefits through Covered California, $10 million for gender-transition care for children and youth in the 2026 budget, and more than $4 million in prison sex-change procedures for 157 inmates. New York follows with over $15 million through its Lorena Borjas transgender fund and $12.3 million in LGBT health contracts. Colorado requested $8 million in a single year for transgender prison housing and surgery. Washington set aside $7.8 million for the same purpose.

What governments don't publish

About 20 states pay for gender-transition procedures through Medicaid and have never released what it costs, including New York, New Jersey, Pennsylvania, Massachusetts, Minnesota, Connecticut and California for adults. Prison costs, state employee health plans, federal employee health plans, Medicare and the VA are largely undisclosed too. City and school-district spending isn't tracked nationally at all.

To estimate these gaps, we used each state's own records where they exist. The nine states that released Medicaid totals paid a median of $0.54 per resident per year. We applied that rate, along with a low and a high version, to states that cover the same services but keep the numbers private. The same approach was used for prisons and employee plans, using the costs that California, Washington, Colorado, New Jersey and North Carolina did publish. The report explains every assumption.

The full-range table at the top of this article shows every estimate line next to the verifiable sums.

What this is not

These totals leave out HIV treatment and prevention programs (roughly $1.9 billion a year serves mostly gay and bisexual men), because those are disease programs, not identity programs. They also leave out about $1.9 billion in private foundation grants from 2016 to 2024, because that is not taxpayer money. Including either would make the numbers much larger.

Why it matters

While states and Washington built permanent funding lines for gender-identity programs, school districts were cutting teachers. In Eugene alone, the 4J district eliminated 265 positions and issued 177 layoff notices (our earlier report). Billions went to identity programs over the same decade. Taxpayers are entitled to know what their money bought, and most governments still won't tell them.

Sources

Sources for the opinion section

• U.S. Treasury, Debt to the Penny (total public debt outstanding: $40,444,342,709,389 on October 22, 2026)
• Taxpayers Spent at Least $1.4 Billion on LGBTQ and Gender-Identity Programs, and Likely $3.3 Billion, with the full sourced report (PDF)
• Oregon LGBTQ and identity spending report, FY2016–2026 (PDF)
• Lookout Eugene-Springfield, Teachers grieve as 4J layoff notices go out (May 2, 2026)
• Lookout Eugene-Springfield, 4J budget panel advances 2026–27 budget (May 7, 2026)
• OPB, Eugene School District proposed budget concerns, deficit cuts (May 7, 2026)
• KLCC, Eugene 4J forecasts budget deficit, early planning (Oct 22, 2026)
• NBC16, Eugene 4J board OKs superintendent's plan to address $30M–$35M deficit (Oct 22, 2026)
• Oregon Department of Education, assessment group reports
• House Appropriations Committee, FY2023 State and Foreign Operations summary

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