Virginia School Districts File Lawsuit Against Education Department for Withholding Funding Over Gender Policies

U.S. Education Secretary Linda McMahon prepares to do a live TV interview with Fox News outside of the White House on July 15, 2025 in Washington, DC. McMahon's interview was canceled after the U.S. Secret Service closed down the North Lawn after reports of a security threat near the White House. Anna Moneymaker/Getty Images

Two Northern Virginia school districts have filed a lawsuit against the Department of Education (DOE) over the latter's decision to withhold funding over gender policies.

Arlington Public Schools (APS) and Fairfax County Public Schools (FCPS) were the ones that filed the lawsuit on Friday. The school districts claim that the DOE's decision to freeze funding is unconstitutional.

Virginia School Districts Sue Department of Education

The decision caused Fairfax County schools to be placed at risk of losing $167 million in federal funding, while Arlington schools could lose $23 million. The money is planned to be used to provide free lunches for students who are in need, education for students with disabilities, and many other programs.

In a statement, the FCPS said that the DOE has placed it in an impossible position by "demanding the division violate federal law to protect its funding." This would also cause the district to discriminate against its students.

It added that the money, described as crucial federal dollars, is used to support food and nutrition services and staffing of cafeterias. It would also be used for services and instruction for students with disabilities, increase student achievement, support technical education, and more, according to NBC Washington.

On Thursday, the Fairfax County School Board voted to move forward with the lawsuit against the DOE and Education Secretary Linda McMahon. APS Superintendent Francisco Duran added that students are being punished whenever federal funding is ripped away.

The DOE put APS, FCPS, and three other Northern Virginia districts on "high-risk status" earlier this month. The decision was made regarding their policies for allowing students to use bathrooms and locker rooms that align with their gender identity.

The situation comes as the DOE, under the Trump administration, has repeatedly investigated and pressured school districts that allow transgender students access to bathrooms, locker rooms, and sports teams that do not align with their birth gender, MSN reported.

Arguments Over Gender Policies

Both supporters and those against these policies point to court cases that back their interpretation of the law, and agree that the Supreme Court will ultimately decide the matter in the future.

In a social media post, McMahon pushed back on the districts, saying it is disturbing that these school leaders are fighting harder to "keep boys in girls' sports and bathrooms than they are to improve outcomes for students."

The DOE's investigations into schools began after a conservative group founded by White House Deputy Chief of Staff Stephen Miller, America First Legal, filed a complaint. It alleged that the districts were providing "greater rights to students whose 'gender identity' does not match their biological sex than it does to students whose 'gender identity' matches their biological sex," as per the Washington Post.

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