Two of Virginia’s largest school districts, Fairfax County Public Schools and Arlington Public Schools, have launched a high-stakes legal battle against the U.S. Department of Education, seeking to protect millions in federal funding after the Trump administration moved to penalize them over transgender-inclusive policies. The lawsuits, filed on August 29, 2025, in federal court, mark a pivotal moment in the ongoing national debate over transgender rights in schools and the boundaries of federal authority.
The dispute centers on the districts’ policies allowing transgender students to use restrooms and locker rooms that match their gender identity—a stance both school boards argue is not only lawful but required under existing federal and state law. The Department of Education, under President Donald Trump and Education Secretary Linda McMahon, disagrees. Citing Title IX, the federal law that prohibits sex discrimination in education, the department designated the districts as “high-risk” entities on August 19, 2025, and changed their funding model to “by reimbursement only.”
This move has immediate and sweeping consequences for the districts. According to a statement from Fairfax County Public Schools, the designation “effectively freezes” up to $167 million in federal funding, a sum that supports everything from food and nutrition services for students in need to special education, technical education, and teacher development programs. Arlington Public Schools faces a similar predicament, with $23 million at risk—$8.6 million of which is earmarked for food services alone.
“These crucial federal dollars are used to support food and nutrition services, as well as the staffing of cafeterias,” Fairfax County officials stated in their lawsuit, as reported by Courthouse News. “Other funding is used for services and instruction for students with disabilities, to increase student achievement, support technical education, promote teacher development, and fund community education programs.”
The Trump administration’s position is clear. In a social media post, Secretary McMahon defended the department’s actions, stating, “It’s disturbing that these Virginia school division leaders are fighting harder to keep boys in girls’ sports and bathrooms than they are to improve outcomes for students.” She added, “See you in Court.” The department’s Office of Civil Rights has accused the districts of “trampling on the rights of students in the service of an extreme political ideology,” insisting that Title IX must be interpreted strictly according to biological sex.
But the school districts—and their legal teams—see things very differently. Both Fairfax and Arlington point to binding precedent from the U.S. Court of Appeals for the Fourth Circuit, specifically the landmark decision in the Gavin Grimm case. In 2020, the Fourth Circuit ruled that barring a transgender boy from using the boys’ restroom violated Title IX, reaffirming that school boards must provide students access to facilities matching their gender identity. The Supreme Court’s refusal to hear the case in 2021 left the Fourth Circuit’s decision in place, making it the law of the land in Virginia and several other states.
“The U.S. Department of Education has no legal basis, as it relies upon an incorrect interpretation of Title IX that is flatly inconsistent with binding precedent in the Fourth Circuit,” Fairfax County’s lawsuit argues, according to Education Week. The district, which serves 180,000 students and operates on a more than $4 billion budget, contends that its policies are not only legal but required. “We strongly disagree with the U.S. DOE’s assertion that our policy violates Title IX. Current APS policy adheres to state and federal law,” Arlington Superintendent Francisco Durán said in a statement to News4. “We will continue to uphold and advocate for policies that reflect our values and support the academic and social-emotional well-being of every child.”
The lawsuits ask the court to remove the “high-risk” designation, declare the Education Department’s actions unlawful and unconstitutional, and affirm that the districts’ policies comply with federal and state law. “This lawsuit is an important step in our effort to protect the health and safety of all our students in alignment with state and federal law—to ensure that hungry children are fed and that student access to multilingual, special education, and other essential services is not compromised,” Fairfax Superintendent Michelle C. Reid wrote in a letter to parents.
The financial implications are enormous. The “reimbursement only” model means the districts must pay for expenses upfront and then request reimbursement from the federal government—a process that could result in denied claims and severe budget shortfalls. “DOE has placed FCPS in an impossible position by demanding the division violate federal law to protect its funding, and in turn be forced to discriminate against students,” Fairfax County officials said. “The ‘high-risk’ designation unlawfully and unfairly harms tens of thousands of FCPS children.”
The controversy has drawn sharp criticism from Virginia’s top Republican officials. Lieutenant Governor Winsome Earle-Sears, the party’s nominee for governor, stated, “Fairfax and Arlington are choosing ideology over common sense, and now our children are the ones paying the price. Title IX was written to protect women and girls, not erase them. Instead of suing to keep boys in girls’ bathrooms and locker rooms, these school boards should be focused on educating our children and keeping every student safe.” Attorney General Jason Miyares echoed these sentiments, asserting, “In my opinion, they are in violation of Title IX. I think this is a great example of being so open-minded that your brain falls out. Their first priority should be, I think, making sure our women keep their safe spaces.”
Meanwhile, the Education Department’s approach is not limited to Virginia. The department has recently threatened similar sanctions against Denver Public Schools after a city high school converted a girls’ restroom into an all-gender facility, signaling a broader crackdown on transgender-inclusive policies nationwide.
Legal experts say the outcome of the Virginia lawsuits could have far-reaching implications. The Supreme Court has yet to directly rule on the question of transgender student access to facilities, but the Fourth Circuit’s decision in favor of Gavin Grimm remains a key precedent. In a related development, South Carolina has asked the Supreme Court to uphold a state policy barring transgender students from bathrooms that align with their gender identity, following a lower court ruling that blocked the policy based on the same Fourth Circuit precedent.
With millions of dollars and the educational well-being of thousands of students hanging in the balance, both sides appear determined to see the dispute through the courts. As Superintendent Reid put it, “We will not abide attempts to pit one group of students against another.” The coming months will reveal whether the courts agree—and whether the federal government’s power to enforce its interpretation of Title IX will withstand this latest challenge from local school districts.
