Trump Administration Threatens Funding Cuts for Two School Districts Over Transgender Policies

By Emily Carter|Business & Economy Reporter
Trump Administration Threatens Funding Cuts for Two School Districts Over Transgender Policies

By Kanishka Singh

WASHINGTON, July 27 (Reuters) — The U.S. Education Department has threatened to withhold federal funding from two public school systems in Michigan and Maryland, accusing them of violating student privacy laws by refusing to share a child’s transgender identity with parents. The move is the latest in a series of actions by President Donald Trump’s administration to curb transgender-related policies in schools.

In statements released Monday, the department alleged that Anne Arundel County Public Schools (AACPS) in Maryland violated the Family Educational Rights and Privacy Act (FERPA) by classifying a student’s gender identity as “confidential medical information” and withholding it from parents. Similarly, Ann Arbor Public Schools in Michigan was cited for a policy that, according to the administration, requires employees to “hide a child’s transgender status from his or her parents.”

The Trump administration has issued multiple executive orders and taken various steps to restrict transgender rights since the president took office. The Education Department’s threat marks a new front in that effort, targeting local school districts that have adopted policies seen as protecting student privacy and affirming gender identity.

AACPS, in a response cited by an NBC affiliate, said it learned of the allegations only through the department’s public statement and had not received any formal correspondence or supporting documents. “Once such information is received, AACPS and its legal counsel will carefully review it and respond through the appropriate process,” the district said. Ann Arbor Public Schools declined to comment.

The department gave Ann Arbor until Aug. 10 to show why the government should not move forward with enforcement action, while AACPS was told it faces immediate consequences. Violations of FERPA, the primary federal law protecting student education records from unauthorized disclosure, can result in the termination of federal funding, the department warned.

The crackdown is part of a broader pattern: Trump has previously attempted to freeze federal funding for schools over issues including climate initiatives, diversity programs, and pro-Palestinian protests related to the war in Gaza. Civil rights groups have criticized these actions as overreach, arguing they violate academic freedom, free speech, and due process.

The escalation over transgender policies is likely to intensify legal battles between conservative-led federal agencies and progressive school districts. Education advocates warn that cutting funds could destabilize school budgets, while supporters of the administration argue the measures protect parental rights and student privacy laws.

(Reporting by Kanishka Singh in Washington; Editing by Michael Perry)

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