According to NYT, this move by the Department of Health and Human Services would deny 1.4 million Americans their federal recognition and protection.
Across Twitter, transgender people and their allies began posting photos of themselves and their stories with the hashtag #WontBeErased.
"Sex means a person's status as male or female based on immutable biological traits identifiable by or before birth", reads the memo, which was reportedly drafted last spring.
Civil rights groups across the board have pledged to fight back.
"The sex listed on a person's birth certificate, as originally issued, shall constitute definitive proof of a person's sex unless rebutted by reliable genetic evidence", the memo allegedly says. Transgender people have the right to not only exist, but to fully participate in public life.
The move, if made and followed through in coordination with other key federal departments, would mark a major shift for transgender rights under the law and reverse course from the Obama administration, which expanded the legal concept of gender in several instances to recognize gender identity did not always match one's sex as determined at birth.
The report alleges that the department argues the current lack of clarity allowed civil rights protections to be wrongfully extended to some individuals during the Obama administration. "Any dispute about one's sex would have to be clarified using genetic testing".
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Trump administration officials say HHS is preparing to formally present this new definition of gender to the Justice Department for approval before the end of the year.
A spokeswoman for the Department of Health and Human Services (HHS) declined to comment on what she called "allegedly leaked documents" but cited a ruling by a conservative USA district judge as a guide to transgender policy.
In 2016, Judge Reed O'Connor ruled on a challenge to a provision in the Affordable Care Act that forbade discrimination on the basis of race, color, sex, and other characteristics.
That's not very controversial, particularly for HHS subsidiaries, who have struggled to handle questions about gender-based discrimination that arise, specifically, under Title IX, which covers sex and gender issues at publicly funded colleges and universities.
"This administration is willing to disregard the established medical and legal view of our rights and ourselves to solidify an archaic, dogmatic, and frightening view of the world", writes Mara Keisling, executive director of the National Center for Transgender Equality, in a statement.
"Courts and the previous administration took advantage of this circumstance to include gender identity and sexual orientation in a multitude of agencies, and under a multitude of laws", the memo states.