California is flatly rejecting demands from the Trump administration that it stop allowing transgender athletes to compete on girls’ sports teams and share their changing facilities, a decision that could cost the state billions of dollars in federal education funding. 

The federal Department of Education’s office for civil rights says California’s department of education, or CDE, violated Title IX by allowing biological males to compete on girls’ sports teams. The federal agency gave California 10 days to comply with a “proposed resolution agreement,” which would have required the state to take several steps, among them clarifying that Title IX “forbids schools from allowing males to participate in female sports and from occupying female intimate facilities.” 

On Monday, the general counsel for the CDE, Len Garfinkel, said the state received the federal government’s letter, but would not comply with it. Mr. Garfinkel wrote, “The CDE respectfully disagrees with OCR’s analysis, and it will not sign the Proposed Resolution Agreement.” 

The state’s high school sports federation also said it would not sign the agreement. 

In response, the secretary of education, Linda McMahon, posted on X, “California has just REJECTED our resolution agreement to follow federal law and keep men out of women’s sports. Turns out Gov. Newsom’s acknowledgment that ‘it’s an issue of fairness’ was empty political grandstanding.”

During a March episode of Governor Newsom’s podcast, “This is Gavin Newsom,” he said he believes it is “deeply unfair” to have transgender athletes competing in female sports. While the governor said it is an “issue of fairness,” he also said there should be “humility and a grace” because “these poor people are more likely to commit suicide.” 

Ms. McMahon said that Mr. Newsom will be hearing from Attorney General Bondi if the state’s intransigence continues. 

Ms. McMahon vowed last month, “The Trump Administration will relentlessly enforce Title IX protections for women and girls, and our findings today make clear that California has failed to adhere to its obligations under federal law. The state must swiftly come into compliance with Title IX or face the consequences that follow.”

Along with clarifying that Title IX prohibits biological males from competing in girls’ sports, the Trump administration wanted California to “restore to female athletes all individual records, titles, and awards misappropriated by male athletes competing in female competitions.” The state would also be required to “adopt biology-based definitions of the words ‘male’ and ‘female.’”

The federal government also wanted the department to send a “personalized letter apologizing on behalf of the state of California” to female athletes who lost awards or recognitions to transgender athletes.

Last week, the University of Pennsylvania agreed to a deal with terms that closely mirror those laid out in the proposal for California. The Ivy League school said it would resolve a federal civil rights case by agreeing to ban biological males from competing on female sports teams, awarding titles to female athletes who lost out to a transgender swimmer, Lia Thomas, and sending a personalized apology letter to those swimmers.

The school also modified records set by Lia Thomas to show other athletes holding the school’s records for top times. Its website now states, “Competing under eligibility rules in effect at the time, Lia Thomas set program records in the 100, 200, and 500 freestyle during the 2021-22 season.”

California’s refusal to comply with the proposed resolution agreement could lead to a significant blow to its education funding. The state receives nearly $8 billion in federal education funding, according to Education Week.