Three School Districts Face $24M Funding Cut Over Transgender Policies

Three of the largest public school systems in the United States are at risk of losing a combined $24 million in federal grants. The U.S. Education Department announced it would withhold the funds from schools in New York City, Chicago, and Fairfax County, Virginia, after they declined to alter policies that support transgender students.

The districts missed a deadline set by the Trump administration to agree to change their rules regarding student access to restrooms and locker rooms. The department contends the current policies, which allow students to use facilities matching their gender identity, violate federal law.

Federal Grants Withheld After Deadline Passes

The U.S. Education Department's Office for Civil Rights had given the three school districts until Tuesday, September 22, to commit to policy changes. The administration demanded they stop allowing students access to locker rooms and restrooms that align with their gender identity.

In letters dated September 16, Craig Trainor, the department's acting assistant secretary for civil rights, stated that these policies are a violation of Title IX, a federal law prohibiting sex-based discrimination in education. Because the districts did not agree to the department's terms, Trainor will not certify their compliance with federal civil rights law, which makes them ineligible for the grants.

The funds are from the Magnet School Assistance Program, which supports specialized academic programs designed to attract a diverse student body. The funding cuts are scheduled to take effect in the new fiscal year, beginning October 1.

Administration Cites Discrimination Concerns

The Education Department has defended its position, stating that the school districts' policies are discriminatory. A department spokesperson argued that the schools are not upholding federal law.

"The Department will not rubber-stamp civil rights compliance for New York, Chicago, and Fairfax while they blatantly discriminate against students based on race and sex," said department spokesperson Julie Hartman. "These are public schools, funded by hardworking American families, and parents have every right to expect an excellent education—not ideological indoctrination masquerading as `inclusive' policy.'"

Additional Demands on Districts

The department's requirements extended beyond facility access. Both New York City and Chicago were instructed to issue public statements affirming they would not permit students assigned male at birth to compete in female athletic programs.

Chicago Public Schools faced a further directive to dismantle a program that provides additional academic resources specifically for Black students. In his letter, Trainor described this initiative as "textbook racial discrimination." School officials noted that the combined loss of funding would impact programs that provide extra staff, technology, and enrichment activities for students.

School Districts Defend Their Policies

Officials from the affected school districts have pushed back against the federal government's actions, arguing their policies are lawful and essential for student well-being. They maintain that the department is overstepping its authority and harming students.

In its official response, Chicago's acting general counsel, Elizabeth Barton, criticized the department for not providing evidence of harm to students and for deviating from its standard complaint procedures. "Our mission, programs, and policies not only meet our obligation to students, but they also plainly comply with the law," Barton stated.

New York City and Chicago both requested an extension to respond to the demands, but the Education Department denied their requests. It remains unclear if Fairfax County schools made a similar request. The district has not publicly commented on the matter.

New York City schools issued a statement highlighting the potential damage from the funding cuts. "Cutting this funding — which invests in specialized curricula, afterschool education, and summer learning — harms not only the approximately 8,500 students this program currently benefits, but all of our students from underserved communities," the statement read. "If the federal government pulls this funding, that means canceled courses and shrinking enrichment."

Local Political Reactions in New York City

The issue has become a talking point in New York City's mayoral election. Incumbent Mayor Eric Adams recently stated he would consider reviewing the city's policy if it "is allowing boys and girls to use the same facility at the same time," though he later insisted his comments were unrelated to the administration's letter.

Zohran Mamdani, the Democratic nominee for mayor, quickly condemned Adams' remarks, calling them "completely at odds with the values of our city."

Mayor Adams later clarified that while he might want to change the policy, he lacks the authority to do so, as New York state's human rights law also protects a student's right to use facilities consistent with their gender identity.

On Wednesday, the mayor's office confirmed it was exploring all available options, including potential legal action. "The federal government is threatening to defund our children’s education as a tool to change policies it doesn’t like," said City Hall spokesperson Kayla Mamelak Altus. "While Mayor Adams may not agree with every rule or policy, we will always stand up to protect critical resources for our city’s 1 million students.”