Many states have introduced bills restricting healthcare for transgender and gender‐diverse (TGD) individuals. This may prompt medical students to seek residency training in other states, exacerbating TGD healthcare disparities. We assessed medical students' perspectives on legislation prohibiting gender transition procedures (GTP) and how this affects residency applications. We analyzed responses from medical students at a Midwest institution, including demographics, knowledge of GTP legislation, impact on future training and practice, and agreement with proposed legislation. Respondents shared factors influencing their feelings about applying for residency in states that restrict GTP, as well as considerations informing their position about regulations. 36.8% consider GTP legislation important for residency applications. 60.5% think this will impact their future practice. 57.3% are against restricting GTP for minors, and 82.7% for adults. Factors influencing residency applications were LGBTQ+ safety (38.5%), government interference (33.3%), education/training (33.3%), neutral (20.5%), and against GTP (15.4%). Factors informing position on GTP were best practices (71.8%), consent (30.8%), government interference (30.8%), and need more data (7.7%). Most students surveyed were against the restriction of GTP, and legislation prohibiting GTP may drive physicians to other states. Responses also highlighted knowledge gaps about GTP, which may improve with additional training.