A federal appeals court has revived lawsuits by two Virginia school boards challenging a federal funding freeze tied to their transgender bathroom policies. The Fourth Circuit allows the districts to continue pursuing their claims in federal court, rather than having the case handled through the Court of Federal Claims.
The ruling centers on whether the boards can argue that their transgender bathroom policies comply with Title IX. Outlets describe the decision as part of an ongoing dispute involving the U.S. Department of Education and the threat of funding changes connected to transgender students’ access to school facilities.
Reporting also notes that the appeals panel is split, and the decision overturns a prior finding by a lower court. While one judge previously limited or dismissed the case, the Fourth Circuit’s move restarts the districts’ ability to litigate their position on federal law and funding consequences.
Overall, sources agree the appellate court reinstates the school boards’ ability to proceed and clarifies the procedural forum for their challenge, keeping the broader disagreement about federal requirements for transgender-related school policies active in the courts.