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Tampa-based U.S. District Judge William Jung issued an injunction in July to halt the rule, which was designed to help prevent discrimination in health care programs that receive federal money.
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The stay means the state's restrictions on puberty blockers and hormone therapy for minors with gender dysphoria can be in effect while the Atlanta-based court considers an underlying appeal.
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The decision could be important for a legal battle over a Florida law that prevents minors from receiving hormone therapy and puberty blockers to treat gender dysphoria.
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A district judge in June said Florida's law restricting access to gender-affirming care was unconstitutional. Lawyers for plaintiffs and their families say even a temporary rollback on that decision is "devastating."
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The ruling effectively means the restrictions on puberty blockers and hormonal treatments for children and adults can take effect while the appeals court considers an underlying appeal.
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Attorneys for both sides filed a court document dismissing the case, which the pediatricians group filed last year after House Health & Human Services Chair Randy Fine subpoenaed documents.
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The federal judge says the Department of Management Services violated Title VII of the Civil Rights Act of 1964. The court will schedule a trial to determine the amount of plaintiffs’ damages.
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The dispute centers on the Health & Human Services panel's demand for internal info on standards of care for kids with gender dysphoria from the Florida Chapter of the American Academy of Pediatrics.
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Attorneys for the state filed a 36-page motion at the 11th U.S. Circuit Court of Appeals seeking a stay of a district judge ruling that blocked restrictions imposed last year.
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The new rule threatens the loss of insurance funds in an attempt to prevent discrimination based on sex, including gender identity. The judge wrote that state agencies faced "imminent injury" because of the rule.