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U.S. Education Department Withholds NYC Magnet Funds Over Transgender Student Policies

The funding freeze stems from federal officials’ view that the district’s gender-identity rules violate Title IX certification requirements for magnet grants.

Overview

  • After New York City missed a federal deadline to revise transgender-student policies, the Education Department said it will not certify the district for magnet grant funding tied to the next fiscal year.
  • At stake are roughly $15 million for the coming year and about $36 million remaining on existing grants that support five magnet programs, with some reports placing the total near $50 million.
  • Federal officials cited a Sept. 16 letter asserting NYC’s rules allowing access to facilities, sports and activities by gender identity violate Title IX, and said previously disbursed funds would not be clawed back.
  • NYC education leaders requested a 30‑day extension and asked the department to explain the legal connection to magnet grants, but were given only a brief extension to Tuesday to respond, driven by Sept. 30 certification timelines.
  • City leadership remains split in tone, with Mayor Eric Adams publicly criticizing the policies and Chancellor Melissa Aviles-Ramos defending them, as similar federal notices went to districts in Chicago and Fairfax County, Virginia.