In April 2026, Manhattan federal Judge Arun Subramanian ruled that the Trump administration acted improperly when it froze approximately $36 million in Magnet School Assistance Program grants from 19 New York City public schools.
The administration had argued that NYC's policies — allowing transgender students to use bathrooms and sports programs aligned with their gender identity — violated Title IX's sex discrimination protections. To make that argument, it withheld multi-year federal grants without following the statutory procedures Title IX requires before any funding can be cut: hearings, Congressional reports, and documented due process.
The judge ordered federal officials to reconsider the funding decision within ten days. If the administration wishes to pursue a Title IX violation finding, it must now follow proper procedures.
What this ruling does and doesn't mean: This is a procedural win, not a substantive one. The judge did not rule that Title IX protects transgender students — federal courts are divided on that question, and the regulatory floor that once existed was vacated in January 2025. What the judge ruled is that funding cannot simply be cut. The administration must follow the law's own procedures. That process takes time and creates legal exposure.
Legal experts noted the ruling could embolden other school districts to challenge federal funding threats — not because they will win on the substance of trans inclusion under Title IX, but because the administration's process has been demonstrated to be vulnerable.
For Montessori schools: If your school receives federal grants and is concerned about funding pressure related to trans-inclusive policies, the NYC ruling is evidence that challenging an improperly executed funding freeze is viable. Document your policies and their rationale. Coordinate with legal counsel before complying with or resisting any federal demand.