In a high-stakes legal clash over civil rights and education policy, New York City has filed a federal lawsuit against the Trump administration after it slashed more than $35 million in federal magnet school grants—citing the city’s support for transgender and nonbinary students as the reason.
New York City Sues U.S. Over Gender-Inclusive School Policies
The lawsuit, filed Wednesday in Manhattan federal court, accuses the U.S. Department of Education of acting unlawfully by abruptly terminating funding without following proper administrative procedures. The city argues the move has created “chaos and uncertainty” for 19 public magnet schools and roughly 7,700 students who rely on those programs.
At the heart of the dispute are New York City’s longstanding policies allowing students to use bathrooms, locker rooms, and participate in school activities consistent with their gender identity—guidelines the Trump administration claims violate federal civil rights law.
What Triggered the Funding Cut?
In September 2025, Education Secretary Linda McMahon sent formal notices to New York City, Chicago, and Fairfax County, Virginia—three of the nation’s largest school districts—warning that their gender-inclusive policies potentially violated Title IX and other civil rights statutes.
When all three districts refused to revise their policies, the Trump administration pulled magnet school grants totaling tens of millions of dollars. New York City’s share: $35.2 million.
“This isn’t just about money—it’s about dignity, safety, and the right of every student to learn without fear,” said Muriel Goode-Trufant, New York City’s Corporation Counsel, in a statement accompanying the lawsuit.
Which Schools Are Affected?
While the funding cut impacts only a fraction of NYC’s 1,800+ public schools, the consequences are severe for those affected:
- 19 specialized magnet schools lost critical federal support
- Programs in STEM, arts, and dual-language immersion now face budget shortfalls
- Enrollment and staffing plans for the 2026–27 school year are in limbo
Nationwide Ripple Effects
New York isn’t alone. Chicago and Fairfax County also had grants revoked under the same directive, signaling a broader federal strategy to roll back LGBTQ+ protections in public education.
Critics argue the administration is reinterpreting civil rights law to target vulnerable students. Supporters say the policy ensures fairness and biological consistency in school facilities.
Legal Arguments at Stake
The city’s lawsuit doesn’t just challenge the substance of the decision—it attacks the process. Key claims include:
- The Department of Education failed to provide notice or opportunity for public comment.
- No formal rulemaking or evidentiary hearing preceded the funding termination.
- The action contradicts prior federal guidance affirming protections for transgender students.
Political and Social Fallout
The lawsuit arrives amid growing tension between blue-state policies and a Trump administration aggressively reshaping federal education and civil rights enforcement.
Mayor Eric Adams called the funding cut “a political weaponization of education” and vowed to defend the city’s inclusive values. Meanwhile, conservative advocacy groups praised the move as a necessary correction to what they describe as “ideologically driven school mandates.”
What’s Next?
The case is expected to move quickly through the courts, with both sides likely seeking preliminary injunctions. Legal experts say it could reach the Supreme Court—especially if similar lawsuits from Chicago and Virginia are consolidated.
For now, students, parents, and educators in New York City are left navigating uncertainty, even as the city pledges to backfill lost funds “to the greatest extent possible.”
Federal Funding Impact Snapshot
| District | Funding Cut | Students Affected |
|---|---|---|
| New York City | $35.2 million | ~7,700 |
| Chicago | $28.6 million | ~6,200 |
| Fairfax County, VA | $19.1 million | ~4,100 |
