Minnesota Governor Tim Walz’s administration allocated nearly $449,000 in taxpayer money to the nonprofit Gender Justice, raising concerns about a potential “sue-and-settle” scheme. The legal case, brought by Gender Justice on behalf of Craig Lusk, a transgender inmate, argued discrimination for housing Lusk in a men’s prison and denying access to gender reassignment surgery. The settlement granted Lusk $245,903 and a transfer to a women’s prison, with the state covering surgery costs.

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Christina Lusk, formerly known as Craig Lusk, had undergone hormone therapy and was in the process of pursuing gender reassignment surgery before being arrested in December 2018 on meth possession charges.

Though the Minnesota Department of Corrections initially resisted, the agency eventually agreed to the settlement, which also awarded $198,000 to Gender Justice for legal fees. Critics allege the case represents a “closed circle of interests,” with legal partners Robins Kaplan LLP donating more than $22,000 to Walz’s 2022 campaign.

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Minnesota Department of Corrections Deputy Commissioner Michelle Smith approved the settlement with Craig Lusk in May 2023.

This deal established the WPATH standards for treating transgender inmates in Minnesota prisons, sparking controversy over taxpayer funding for gender-affirming surgeries. Some critics argue the new policies lack transparency and amount to unchecked policy changes, circumventing the legislature.

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Vice President Kamala Harris selected Governor Tim Walz as her running mate for the November election, which sparked a wave of negative reports highlighting his mismanagement of state funds during his tenure as Minnesota’s governor.

Walz’s executive order protecting gender-affirming care has been a focal point for Republicans critical of his LGBT policies, including a law requiring menstrual products in boys’ restrooms in schools. The Harris-Walz campaign did not respond to requests for comment on their administration’s LGBT policies.