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The U.S. Department of Justice on Wednesday threatened to withhold billions of dollars in federal funding after filing a lawsuit against the California Department of Education over policies that allow federal student-athletes to compete in women’s sports.

The complaint filed in U.S. District Court in Santa Ana said state educational institutions and the California Interstate Statistics Federation (CIF) discriminates against female students by “permitting them to compete with men.”

“These discriminatory policies and practices ignore undeniable biological differences between boys and girls, and support an instigated “gender identity,” claiming that state policies have led female student athletes to lose scholarships and recognition.

The complaint repeated a U.S. Department of Education ruling issued last month, with states and CIF SAING violating Title IX, a civil rights law that prohibits discrimination based on gender in any educational program or activity. U.S. Education Secretary Linda McMahon said the state’s policy of allowing men to “stolen the admiration of female athletes and to be exposed to the insults of unfair and unsafe competition.

The lawsuit states that Ab Hernandez, a transgender athlete at Jurupa Valley High School, was student 1, used athletics athletes as an example of discrimination against female athletes in California, where Hernandez’s records were awarded a medal if student athletes competed against California, California.

“Student 1 came in first place in the triple jump, tied first in the high jump and second in the long jump,” the DOJ lawsuit states. “If Student 1 had competed in the boys’ competition at that competition, his distance would have ended last in all three events and if he had competed with the boys on May 31, 2025, he would not even qualify to compete in the final.”

The Justice Department also mentioned Governor Newsom’s comments in a podcast in March, as he told conservative commentator Charlie Kirk in a podcast for the complaint that it was “deeply unfair” for trans female athletes to compete in women’s sports.

“The California governor has previously acknowledged that it is “deeply unfair” to force women and girls to compete with men and boys in competitive sports,” Attorney General Pamela Bondy said. “But it’s not only “deeply unfair” but it’s also illegal under federal law. This Department of Justice will continue its fight to protect equal opportunities for women and girls in sports. ”

Through the lawsuit, the federal government hopes that courts will “permanently” enforce California and to reflect the U.S. Department of Education’s attitude towards transgender athletes.

The complaint also seeks to withhold the $3.8 billion set aside for the state for the remainder of fiscal year 2025. Federal funds can be issued as both discretionary and official grants.

The Justice Department said the state is projected to receive a total of $44.3 billion from the federal government this fiscal year, which ends on September 30, 2025.

Governor Newsom has not been appointed as a defendant in the suit, but his office issued a statement saying that the state’s education department and the CIF continue to follow the Schools’ Success and Opportunity Act. This allowed transgender athletes to participate based on gender identity in 2013, allowing them to take discretion from their own school districts regarding transgender student-athletes.

“No court has adopted a federally advanced interpretation of Title IX. The governor can’t even waving a magic wand and override it. Unlike Donald Trump, California follows the law.”

“As the Trump administration withheld billions of dollars in funding for education, this ongoing attack is a sarcastic attempt to distract the Trump administration’s rebates for nearly three million girls registered in California public schools,” the statement added.

Also, Equality California, an LGBTQ+ civil rights group, has accused the lawsuit of “cruel and unfounded political stunts.”

“All students deserve a fair, safe and supportive learning environment that includes opportunities to play sports. Transgender youth are not a threat, but continue to be targeted by the Trump administration with a coordinated campaign of hatred and misinformation,” the group said.

The federal government is calling for a trial by a jury in its legal pursuit.

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