This is actually a much less interesting question, coming from Canada, where we have no death penalty and full gov't healthcare. Of course prisoners should have access to SRS.
Besides the economic argument is pretty terrible considering how many people actually would need this, in pure numbers (a fraction of a fraction of the populace) and the actual cost of the surgery.
Now, politically, I think it's
incredibly fraught, no matter what the medical community says, for all the reasons we've seen in this thread. Emotional arguments, basically.
oh and hey, look what a quick Google turned up – timely:
http://www.cbc.ca/news/politics/federal-prisons-csc-transgender-inmates-1.3909504
Canada's prison system is revamping its policies around transgender inmates amid growing calls to place offenders based on gender identity, not genitalia.
Scott Bardsley, spokesman for Public Safety Minister Ralph Goodale, confirmed that Correctional Service Canada will amend its guidelines for accommodation policy and gender reassignment surgery early in the new year.
He said all Canadians should be safe to be themselves, even if they're behind bars.
"Our government believes that everyone can live according to their gender identity and express their gender as they choose and be protected from discrimination," Bardsley told CBC News. "CSC is committed to ensuring that inmates who identify as trans have the same protection, dignity and treatment as other inmates."
I have a couple of issues with C-16 (still don't agree with forced pronouns) but this all sounds like a huge step in the right direction.