Trump administration threatens to cut funding over school districts’ transgender policies

July 28, 2026 - 19:04

The U.S. Department of Education has issued a warning to two school districts in Maryland and Michigan, threatening to withhold federal funding over their policies regarding the disclosure of students' gender identity. The move signals a renewed federal crackdown on local education practices that do not align with the administration's stance on parental rights and privacy.

According to a letter sent to the districts, the Education Department claims that policies allowing students to keep their gender identity confidential from parents violate federal law. The department argues that schools must inform parents about any changes in a child's gender identity or risk losing federal dollars. The districts have been given a set deadline to adjust their policies or face financial consequences.

Critics of the administration's action argue that it undermines the safety and privacy of transgender and nonbinary students, many of whom may face rejection or harm at home. Supporters, however, say parents have a fundamental right to know what is happening with their children at school. The dispute is expected to escalate, with legal challenges likely from civil rights groups and local education boards. The outcome could set a precedent for how schools across the country handle similar issues.