Nearly $500,000 in taxpayer money was paid by Gov. Tim Walz's administration in what effectively was a "sue and settlement" scheme by a left-wing interest group representing a transgender prison inmate, a new watchdog report concludes.
According to public records reviewed by the taxpayer watchdog group OpenTheBooks.com and first shared with the New York Post, Walz's office allocated nearly $200,000 to Gender Justice, a progressive legal nonprofit focused on "gender equity," one year after the organization filed a sex discrimination complaint against the Minnesota Department of Corrections (DOC).
The complaint alleged the DOC discriminated against a biological male inmate known as Christina Lusk for not placing her in a women's prison and rejecting requests for sex-change surgeries.
Prior to an arrest in December 2018 after being charged with possession of meth and sentenced to a five-year term, Lusk underwent hormone therapy and sought "bottom surgery" to remove her male genitalia.
As of Jan. 31, Lusk was released from state custody and placed under supervision. The settlement reached in this case involved a total of $495,000 distributed among three parties. Lusk received $245,903.72, Gender Justice was allocated $198,000 and Robins Kaplan LLP received $51,096.28 for legal fees.
In 2023, records provided by OpenTheBooks indicate that Gender Justice received $448,904, which includes payments from the DOC and the $5,000 from the Minnesota Department of Education, though further details about the latter amount were not explored.
The settlement also led to an update in policy that avoided the legislative process, with Minnesota’s DOC agreeing to adopt World Professional Association for Transgender Health (WPATH) Standards of Care for treating inmates with gender dysphoria on the taxpayer dime.
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Robins Kaplan LLP, the law firm involved, contributed over $22,000 to Walz’s gubernatorial campaign, including donations from Chair Emeritus Elliott S. Kaplan. Gender Justice's board includes a member from the Minnesota Department of Health, part of the Walz administration.
"This story made waves when the deal was first announced, but by following the money, taxpayers are able to get a much better look at the settlement and the consequences," OpenTheBooks spokesperson Christopher Neefus told Fox News DIgital. "Taxpayers are used to footing the bill, of course, but this deal also meant Minnesota would change its policies when it comes to transgender inmates.
"That sidestepped the public input that comes with a legislative debate."
The issue of taxpayer-funded transgender procedures and accommodation behind prison walls has become more prominent in liberal-run states and cities. Earlier this year, Colorado became the first state in the country with segregated holding cells for transgender women in prison.
After a class-action lawsuit was filed by several transgender inmates in 2019 against the Colorado Department of Corrections (CDOC) alleging discrimination, harassment and assault, a judge signed off on a consent decree that would bring further changes, including surgical sex changes and hormone treatment, to the state's penitentiary.
Several of the plaintiffs who sought judicial approval of the consent decree are serving life without parole for homicide and assault, according to court documents obtained by Fox News Digital.
In June, health officials in the Biden administration urged WPATH to omit the age limit in its guidelines for transgender surgical procedures for adolescents – and succeeded – according to unsealed court documents.
