Public school systems in Arlington and Fairfax County have won a second chance to challenge the federal government over their transgender bathroom policies, after the 4th U.S. Circuit Court of Appeals revived lawsuits that a lower court had thrown out.
In a 2-1 decision issued Thursday, the appellate panel vacated the dismissal of cases brought by the two Northern Virginia school districts against the Trump administration’s Department of Education. The dispute centers on the department’s finding that district policies letting transgender students use bathrooms and locker rooms matching their gender identity violate Title IX, the federal law barring sex discrimination in education.
After both districts declined to change their policies, the Department of Education designated them as “high-risk” recipients of federal grant money. That status means the schools must pay for program expenses out of pocket first and then seek reimbursement, rather than receiving federal funds upfront as they normally would.
U.S. District Judge Rossie Alston had dismissed the lawsuits earlier, ruling that they amounted to disagreements over federal grant payments and therefore belonged in the Court of Federal Claims rather than his court.
Appeals Panel Splits on the Issue
The 4th Circuit majority saw the case differently. Judge Allison Rushing, a Trump appointee, wrote the opinion joined by Chief Judge Albert Diaz, an Obama appointee, finding that the school districts were not merely fighting over money owed under their grant agreements. Instead, the majority concluded the districts were also challenging the Department of Education’s underlying interpretation and enforcement of Title IX — claims that are not purely contractual and should not have been dismissed outright.
Judge Julius Richardson, also a Trump appointee, dissented, arguing that regardless of how the districts framed their claims, the underlying goal was to restore the previous grant-payment arrangement they had before being labeled high-risk.
The appellate court did not rule on whether Arlington’s or Fairfax County’s bathroom policies actually comply with Title IX, and it did not order the Department of Education to lift the funding restrictions. The cases now head back to the district court for further proceedings.
