This research addresses an issue little studied in the public administration and political science literature, public policy affecting the transgender community. Policy domains addressed in the first chapter include vital records laws, health care, marriage, education, hate crimes and employment discrimination. As of 2007, twelve states statutorily protect transgender people from employment discrimination while ten include transgender persons under hate crimes laws. An exploratory cross sectional approach using logistic regression found that public attitudes largely predict which states adopt hate crimes and/or employment discrimination laws. Also relevant are state court decisions and the percentage of Democrats within the legislature. Based on the logistic regression's classification results, four states were selected for case study analysis: North Carolina, Pennsylvania, Maryland and Massachusetts. The case studies found that legislators are often reluctant to support transgender issues due to the community's small size and lack of resources. Additionally, transgender identity's association with gay rights is both a blessing and curse. In conservative districts, particularly those with large Evangelical communities, there is strong resistance to LGBT rights. However, in more tolerant areas, the association with gay rights advocacy groups can foster transgender inclusion in statutes. Legislators perceive more leeway to support LGBT rights. However, gay activists sometimes remove transgender inclusion for political expediency. As such, the policy core of many LGBT interest groups appears to be gay rights while transgender concerns are secondary items. In the policy domains studied, transgender rights are an extension of gay rights.