On August 31, 2026, the U.S. District Court for the Central District of California dismissed with prejudice a lawsuit brought by the United States against the California Department of Education (“CDE”) and California Interscholastic Federation (“CIF”) challenging California laws and policies that permit transgender students to participate in school athletics and use athletic facilities consistent with their gender identity.
California Education Code Section 221.5, subdivision (f), requires elementary and secondary schools to permit students to participate in sex-segregated school programs and activities, including athletic teams and competitions, and use facilities consistent with their gender identity, regardless of the gender listed in their student records. CIF Bylaw 300.D similarly provides that students should be able to participate in CIF activities consistent with their gender identity.
In 2025, the U.S. Department of Education investigated CDE and CIF and concluded that their policies violated Title IX. After CDE and CIF declined to enter into a proposed voluntary resolution agreement, the Department referred the matter to the U.S. Department of Justice. The federal government then filed suit, alleging that Title IX requires schools receiving federal funds to determine eligibility for girls’ athletic teams and access to sex-separated facilities based on biological sex. The United States sought a court order requiring CDE and CIF to issue statewide directives “prohibiting the participation of males in athletic competitions designated for females.”
Court Finds Title IX Did Not Provide Clear Notice of the Federal Government’s Interpretation
The court concluded that Title IX and its implementing regulations did not clearly notify CDE that accepting federal education funding required schools to exclude transgender girls from girls’ athletic teams and sex-separated facilities based on biological sex. Because Congress enacted Title IX pursuant to its Spending Clause authority, recipients of federal funding must have clear notice of the conditions attached to those funds. The court therefore held that the federal government could not enforce that requirement against CDE and CIF as a condition of receiving federal funds. The court did not decide whether California’s regulations comply with Title IX or whether Title IX permits schools to allow transgender girls to participate on girls’ athletic teams.
In reaching that conclusion, the court considered the U.S. Supreme Court’s June 2026 decision in West Virginia v. B.P.J. In that case, the Supreme Court held that Title IX permits states and schools to determine eligibility for girls’ and women’s athletic teams based on biological sex but expressly declined to decide whether Title IX permits schools to allow transgender girls to participate on those teams. Thus, the Supreme Court established that biological-sex eligibility rules are permissible, but not that Title IX requires every state or school to adopt them.
The court also reviewed Title IX’s athletics and facilities regulations. The regulations permit schools to maintain separate athletic teams based on sex in specified circumstances and permit separate toilet, locker room, and shower facilities based on sex. The court found that the regulations do not clearly require schools to determine athletic participation or access to those facilities exclusively based on biological sex.
Finally, the court reviewed the federal government’s changing interpretations of Title IX as applied to transgender students. The court noted that federal officials have taken different positions over time regarding how Title IX applies to transgender students, including in athletics. The court concluded that these changing interpretations further demonstrated that Title IX and its regulations did not provide clear notice of the funding condition the federal government sought to enforce.
Next Steps and California Law Reminders
The federal government may appeal the court’s decision to dismiss the complaint. LCW will continue to monitor this litigation and other developments concerning the application of Title IX to transgender students and school athletics.
California educational institutions should continue to comply with applicable California laws protecting students from discrimination and harassment based on sex, gender, gender identity, gender expression, and sexual orientation. The court’s decision does not alter those independent state-law obligations.
The decision also does not change the Title IX regulations currently in effect. As LCW previously reported, a federal court vacated the 2024 Title IX regulations nationwide in January 2025, and the U.S. Department of Education subsequently announced that it would enforce the 2020 Title IX regulations.
If your institution needs assistance with Title IX and compliance with overlapping federal and state law, including the implementation of policies, procedures, training, or forms, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento office.
United States v. California Interscholastic Federation (C.D.Cal. Aug. 31, 2026, No. 8:25-cv-01485-CV).