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NYC wins court fight over magnet school funding tied to trans student policies
By
Giulia Heyward
Published Apr 9, 2026
Modified Apr 9, 2026
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Michael M. Santiago/Getty Images
By
Giulia Heyward
Published Apr 9, 2026
Modified Apr 9, 2026
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The Trump administration won’t be able to continue withholding tens of millions of dollars in funding for New York City’s magnet schools over the school district’s policies regarding transgender students.
A Manhattan federal judge ruled Wednesday that the federal government acted improperly when it moved to block that funding. The move was tied to city policies that allow students to use bathrooms and join sports teams that match their gender identity, rather than their sex assigned at birth.
The judge’s decision comes months after the White House threatened to strip the nation’s largest school district of federal funds if city schools did not change those policies. Federal education officials argued that allowing transgender students to access certain facilities would create a hostile environment for other students and violate Title IX.
In response, New York City filed a lawsuit against the federal government. The city was later able to access some of that funding after reaching an agreement with federal officials, but tens of millions of dollars remained in limbo this school year.
That uncertainty is now largely resolved after Wednesday’s decision in federal court in Manhattan.
The ruling does not decide whether the city’s policies violate Title IX. Instead, U.S. District Judge Arun Subramanian found that the Department of Education did not follow the required steps before cutting off funding.
In his decision, the judge wrote that the agency could not “simply withdraw funding” without following those procedures.
City officials said the ruling puts pressure on federal officials to act quickly.
“We are pleased that the Court vindicated NYCPS’ position by granting judgment to NYCPS,” Liz Vladeck, general counsel for New York City Public Schools, said in an email. “Arbitrarily cutting off critical funding for excellent school programming without providing the required process cannot stand, especially when that cut off is accompanied by an attack on the rights of our transgender and gender non-conforming students.”
The ruling gives the U.S. Department of Education 10 days to issue a new decision on whether to continue the magnet school grants.
Local advocacy groups, including a leader of a local chapter of PFLAG, a national LGBTQ+ advocacy organization, praised the ruling and said it would help protect the city’s policies.
“We're watching our federal government continue to try and circumvent procedure and policy to attack our most marginalized, and today, a judge essentially said no, you can't just do that,” PFLAG Executive Director Clark Wolff Hamel said in a statement to Gothamist. “I'm grateful that [the city public school system] will continue to receive this vital funding, but I'm even more grateful that our city did not cower to bullies in the first place.”
Local elected officials also called the decision a win for the city.
“Judge Subramanian’s ruling is a victory for public school students and a rebuke of President Trump’s belief that the law is his to interpret,” City Councilmembers Chi Ossé and Justin Sanchez, co-chairs of the Council’s LGBTQIA Caucus, said in a joint statement. “Funding cannot be stripped on a whim or twisted into a tool for political games.”
A spokesperson for the U.S. Department of Education did not immediately respond to requests for comment.
This story has been updated with new information.
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new york city
Giulia Heyward
Giulia Heyward is a breaking news reporter on the Day-Of desk. She previously worked at NPR, as a breaking news reporter, and the New York Times, as a reporting fellow on the national desk. Her work has also appeared in CNN, The Atlantic and Politico. Got a tip? Email [email protected] or more securely on signal at 917-715-1458.
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