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Home Politics

California Rejects Trump Administration Deal on Trans Athletes, Risks Losing $8 Billion in Federal Funds

elisa garcia by elisa garcia
July 8, 2025
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California Rejects Trump Administration Deal on Trans Athletes, Risks Losing $8 Billion in Federal Funds
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In a growing standoff with the Trump administration, California has rejected a proposed federal agreement that would require the state to apologize for allowing transgender athletes to compete in girls’ sports — a decision that now puts $8 billion in federal funding at risk.

In a formal letter, the California Department of Education informed the U.S. Department of Education that it would not sign the resolution put forward by the White House, which accuses the state of violating the civil rights of biological female athletes.

“California refuses to follow the law,” said Representative Kevin Kiley (R-Roseville), one of several Republican lawmakers who addressed the issue at the State Capitol.

“At the end of the day, it’s our duty to protect and keep the civil rights of girls in sports,” added Assemblymember Kate Sanchez (R-Mission Viejo).

However, Democratic leaders pushed back against the federal pressure. State Senator Scott Wiener, a member of the California LGBTQ caucus, criticized the federal government’s motives.

“This has gotten to the point where it’s not even about the merits of anything,” Wiener said. “They’re doing this because it’s red meat for their base, and they just want to demonize trans people.”

The U.S. Department of Education has warned it may withhold $8 billion in federal education funds if California does not comply with the proposed resolution.

“I’ve been warning Governor Newsom and the state’s super majority for a long time that this is going to be the consequence, and now here we are,” Kiley added.

The debate intensified after Governor Gavin Newsom commented in April on a podcast with conservative activist Charlie Kirk, suggesting that the participation of trans athletes in women’s sports could be unfair. His remarks sparked criticism from both Democrats and Republicans.

“As is the case with Gavin, many times he says something and does nothing about it,” said Assembly Minority Leader James Gallagher (R-Yuba City).

“Governor Newsom, obviously, I don’t agree with him on what he said on that podcast,” Wiener responded.

When asked if there was a timeline for when federal funds might be pulled, Kiley said he had no information but would continue working to prevent the funding cut.

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