Trump administration has threatened to cut federal funding to five Virginia school districts for refusing to reverse transgender policies

Trump administration has escalated a contentious dispute by threatening to withhold federal funding from five Northern Virginia school districts—Prince William, Fairfax, Alexandria, Arlington, and Loudoun counties—over their transgender-inclusive policies, which allow students to use bathrooms and locker rooms aligned with their gender identity.

Following investigations, the U.S. Department of Education’s Office for Civil Rights (OCR) declared these policies non-compliant with Title IX, which prohibits sex-based discrimination in education, and demanded their reversal by a Friday deadline in August 2025, threatening significant financial repercussions, such as the potential loss of $160 million for Fairfax County alone.

The districts, staunchly defending their policies, argue they align with Virginia’s Values Act and federal protections for transgender students, accusing the administration of attempting to erase transgender rights.

This conflict reflects the administration’s broader push to reinterpret Title IX to prioritize biological sex, reversing Biden-era expansions, and is set against a backdrop of pending U.S. Supreme Court rulings on the law’s scope.

Critics, including Virginia Senators Warner and Kaine, warn that defunding would disproportionately harm vulnerable students reliant on programs like Title I, while supporters, such as the Independent Women’s Law Center, argue the policies undermine sex-based protections.

With administrative proceedings underway to potentially suspend federal aid and possible referral to the Justice Department, the districts face looming budget uncertainties and are preparing for legal battles, as the issue remains unresolved with significant implications for education equity and transgender rights.