A federal judge has dismissed a U.S. Department of Justice lawsuit that sought to force California schools to bar transgender girls from competing on girls’ sports teams, leaving the state’s current policy in place for now.
U.S. District Judge Cynthia Valenzuela, appointed by President Biden, ruled that the federal government had not properly warned California that its federal education funding could be at risk if the state continued allowing transgender girls to compete alongside other girls, according to the New York Post.
The lawsuit had put $44.3 billion in federal funding for the California Department of Education on the line. With the case dismissed, that threat is no longer active, though the broader legal fight over transgender athletes in school sports remains unsettled.
A Justice Department spokesperson told the Los Angeles Times the agency is “evaluating our options for appeal.”
“We are disappointed by the Court’s order, and remain committed to enforcing President Trump’s agenda preventing boys from playing in girls’ sports,” the spokesperson said.
The case grew out of an incident in Clovis, California, where the controversy first drew national attention. In May, transgender athlete AB Hernandez competed in three events at the CIF State Track & Field Championship at Veterans Memorial Stadium on the Buchanan High School campus, placing first in long jump qualifying and advancing to the finals in high jump, long jump and triple jump.
Hernandez’s participation drew protests outside the stadium, with parents holding signs reading “No boys. No bias. Just fairness” and “Save Girl’s Sports.” Some critics argued the competition had been “stolen from our daughters,” while other athletes voiced support for Hernandez.
The legal challenge was brought by Harmeet Dhillon, who now leads the Justice Department’s Civil Rights Division after working as a conservative attorney in California, and Bill Essayli, a former conservative state lawmaker who now heads the U.S. attorney’s office in Los Angeles. Both have long criticized the state’s policies on transgender student athletes.
California Governor Gavin Newsom has largely stayed out of the public debate over the issue. He has said he did not create the state’s policy allowing transgender athletes to compete according to their gender identity and has suggested the state legislature would need to act if the rule is to change.




