Minnesota’s fight with the Trump administration over its decade-old policy that allows transgender student-athletes to compete in high school girls sports is being referred to the Department of Justice, the federal agency responsible for enforcing nationwide laws.

A joint news release from the U.S. Department of Education (DOE) and U.S. Department of Health and Human Services (HHS) on Monday, Jan. 26, notified the Minnesota Department of Education (MDE) and the Minnesota State High School League (MSHSL) that this step could result in “termination of Minnesota’s federal funding.”

The federal government’s stance is that Minnesota leaders have refused to sign a voluntary resolution agreement and reverse the statewide policy that violates Title IX, which prohibits sex discrimination in any school or education program that receives federal funds.

Minnesota receives about 10%, or $1.4 billion, of its annual school funding from the federal government. That pays for a variety of programs, from services for students with disabilities to support for English language learners to school breakfast and lunch.

School nutrition money, which the Trump administration targeted in Maine in a similar fight over transgender athlete eligibility, amounts to about $429 million this year in Minnesota.

The MSHSL declined to comment.

The Minnesota Attorney General’s office, on behalf of the MDE, has rejected a proposed resolution from the Trump administration to, among several things, have the MSHSL change its policy; apologize to female athletes who competed against students assigned the male gender at birth; and rescind titles or records held by transgender athletes in girls sports.

The federal assertion that Minnesota is in violation of Title IX came after the Trump administration issued an executive order in February 2025 banning trans athletes from girls and women’s sports. The Office for Civil Rights (OCR) launched an investigation into the State High School League and on Sept. 30, declared Minnesota was in violation of Title IX.

The case impacts not only the MSHSL and MDE, but more than 300 school districts, each with its own political dynamics.

In its investigation, the OCR determined that the MSHSL, over several years, has allowed trans athletes to compete in girls skiing (Alpine and Nordic), girls lacrosse, girls track and field, girls volleyball and girls softball.

The MSHSL, citing the Data Privacy Act, does not keep records of how many transgender students compete in the league’s sports and activities.

Minnesota Solicitor General Liz Kramer previously said the “federal government would need to follow an extensive, multi-step administrative process before any federal funding to Minnesota education programs or activities could ever be terminated.”

The Minnesota Attorney General’s office is using the courts to fight the Trump administration’s efforts. On Dec. 2, it added the U.S. DOE and HHS as defendants in its federal lawsuit challenging the interpretation of Title IX.

“Despite repeated opportunities to comply with Title IX, Minnesota has chosen defiance, continuing to jeopardize the safety of women and girls, deny them fair competition, and erode their right to equal access in educational programs and activities,” U.S. Secretary of Education Linda McMahon said in a news release. “... The Trump Administration will not stop until accountability is delivered for Minnesota’s students.”

The OCR gave Minnesota 10 days from Sept. 30 to change its bylaw or risk losing federal funding. The initial deadline passed amid the federal government shutdown that began Oct. 1 and lasted 43 days.

The administration has set deadlines that have come and gone, most recently Jan. 2.