The Trump administration announced that three of the nation’s largest school districts—New York City, Chicago, and Fairfax County, Virginia—stand to lose a combined $24 million in federal grants because of their policies supporting transgender students. The U.S. Education Department’s Office for Civil Rights had given the districts until September 24 to stop allowing students to use restrooms and locker rooms that match their gender identity or risk losing Magnet School Assistance Program funding. In letters issued September 16, Acting Assistant Secretary for Civil Rights Craig Trainor said the districts’ policies violate Title IX, which prohibits sex-based discrimination in education. Since the districts declined to comply, Trainor will not certify them as meeting civil rights requirements, making them ineligible for the grants. According to the Education Department, New York City will lose about $15 million, Chicago will lose $5.8 million, and Fairfax County will forfeit $3.4 million beginning October 1. Department spokesperson Julie Hartman defended the move, saying public schools must provide an excellent education “not ideological indoctrination masquerading as inclusive policy.”
In addition to bathroom and locker room access, the department also ordered New York City and Chicago to issue public statements barring male students from competing in female sports programs. Chicago was further directed to end a remedial program aimed at supporting Black students, which Trainor called “textbook racial discrimination.” School officials pushed back, arguing that their policies comply with the law and that the department provided no evidence of harm. They warned that the funding cuts would undermine technology upgrades, staffing, field trips, afterschool programs, and other enrichment efforts serving thousands of students. New York City schools said the loss would harm 8,500 students in underserved communities, calling the move unfair and damaging.
The dispute also spilled into New York’s mayoral race, where Mayor Eric Adams said he would consider revisiting school bathroom policies, sparking criticism from Democratic nominee Zohran Mamdani, who called Adams’ remarks out of step with the city’s values. Adams later clarified that state law requires schools to allow students to use facilities matching their gender identity, but his office confirmed it is reviewing options, including legal action. City Hall spokesperson Kayla Mamelak Altus accused the federal government of using children’s education as leverage, vowing to protect resources for the city’s one million students despite policy disagreements.
