Story
US Threatens Funding Cuts to Michigan, Maryland Schools Over Transgender Policies

Summary
The U.S. Education Department has warned two school districts in Michigan and Maryland that they risk losing federal funding over policies concerning transgender students, which the agency alleges violate federal privacy laws.
The U.S. Education Department has threatened to cut federal funding for two school districts, one in Michigan and one in Maryland, over allegations that their policies on transgender students violate federal law. The move represents the latest action by the Trump administration to address transgender rights in educational institutions, according to a Reuters report.
Alleged Privacy Violations
The department alleges that both school districts have violated the Family Educational Rights and Privacy Act (FERPA), the primary federal law that protects the privacy of student education records. Violations of FERPA can result in the termination of federal funding.
According to a statement from the Education Department:
- Anne Arundel County Public Schools in Maryland is accused of violating the act by classifying a student's gender identity as "confidential medical information" that cannot be shared with parents.
- Ann Arbor Public Schools in Michigan is cited for a policy that the administration alleges requires "school employees to hide a child’s transgender status from his or her parents."
Districts' Response and Next Steps
AdAnne Arundel County Public Schools (AACPS) said in a statement cited by an NBC affiliate that it first learned of the department's findings through the public announcement on Monday. The district stated it had not received any formal correspondence but would review the information with legal counsel once it arrives.
Ann Arbor Public Schools did not provide an immediate comment. The Education Department said it will proceed with enforcement action against the Maryland district and has given the Michigan district until Aug. 10 to justify why similar action should not be taken against it.
Broader Context
This action is consistent with other efforts by the Trump administration to use the threat of federal funding withdrawal to influence policies at educational institutions on a range of issues, including diversity initiatives and climate policies. Civil rights organizations have criticized these tactics, arguing they can infringe on academic freedom and due process.
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