A federal judge has dismissed a US Department of Justice lawsuit that had challenged California policies allowing transgender athletes to compete in girls' school sports, prompting advocates to vow they will continue the fight. US District Judge Cynthia Valenzuela based her ruling on procedural grounds, finding the federal government had failed to give California proper prior notice before threatening to withhold education funding, rather than ruling on the underlying fairness dispute. The Justice Department, which is considering an appeal, said it remains committed to enforcing President Donald Trump's policy barring biological males from girls' sports.

The DOJ had sued the California Department of Education and the California Interscholastic Federation in July 2025, alleging their transgender athlete policies discriminated against female athletes, with the threat of withdrawing $44 billion in education funding. Campaigners including Sophia Lorey of the California Family Council and Sonja Shaw, a candidate for California superintendent of public instruction, criticised the dismissal as a "technicality" that avoided the central Title IX question and pledged to keep pressing lawmakers and pursuing legal action. The California Interscholastic Federation declined to comment on the ruling.