Three Districts Lose More Than $24 Million in Federal MSAP Funding Over Civil Rights Compliance, Education Department Says
NYC, Chicago, and Fairfax County face withholding of Magnet School Assistance Program funds after missing a federal deadline to address potential civil rights violations.
The U.S. Education Department said Friday that it will not certify Magnet School Assistance Program grants for three districts—New York City Public Schools, Chicago Public Schools, and Fairfax County Public Schools in Virginia—after the districts failed to address potential civil rights violations by a Sept. 16 deadline. As a result, more than $24 million in MSAP funding will be withheld for the next fiscal year beginning Oct. 1.
The total at stake was about $3.4 million for Fairfax County, roughly $5.8 million for Chicago Public Schools, and about $15 million for New York City Public Schools, the department said. Education Department spokeswoman Julie Hartman said the department will not rubber-stamp compliance for districts that allegedly discriminate on the basis of sex or race, and warned that if the districts persist, the funding will not be available in the next fiscal year.
In letters dated Sept. 16, Education Department Acting Assistant Secretary for Civil Rights Craig Trainor accused all three districts of discrimination on the basis of sex in violation of Title IX due to policies governing transgender and gender expansive students. The letters indicate the department views such policies as potential civil rights violations that must be addressed to maintain eligibility for MSAP funds.
New York City Public Schools guidelines reportedly require transgender and gender expansive students to be provided access to facilities that align with their gender identity, and to allow students who identify as gender fluid to participate in activities and even overnight trips in ways that the department described as problematic. Fairfax County Public Schools has reportedly adopted a policy that requires restrooms or locker rooms to be aligned with a student’s gender identity, a measure Trainor characterized as discriminatory in his letters. Both districts had previously informed the department that they were facing legal action over related regulations, including a lawsuit alleging violations of free speech, free exercise, due process, and equal protection rights arising from Regulation 2603.2.
Chicago Public Schools was accused of promoting a policy that the department described as racially exclusionary and potentially in violation of Title VI. Trainor cited a district initiative aimed at improving outcomes for Black students and argued that remedial resources were allocated in a way that did not meet federal civil rights standards. Chicago officials did not respond to requests for comment.
The districts were warned ahead of the formal action and now face the loss of MSAP funding for the next fiscal year. The department said the districts informed its Office for Civil Rights that they were involved in litigation over Regulation 2603.2 and that a student reportedly avoided using school restrooms unless absolutely necessary because of the regulation. Trainor demanded that the districts rescind the regulation as part of addressing the civil rights concerns.
If the districts come into compliance with federal civil rights laws, MSAP funding could be reconsidered in future grant cycles, but no funds will be certified for the next fiscal year while noncompliance persists. MSAP is a federal program designed to support magnet schools and provide opportunities for student access to diverse programs, with civil rights compliance a prerequisite for grant eligibility.
The decision underscores the department’s current approach to civil rights enforcement in public schools, particularly around gender identity policies and equity-focused initiatives in large urban districts. The districts did not respond to requests for comment, and there was no immediate update on any potential steps to address the department’s concerns or to refile for MSAP consideration in the future. The funding reduction is likely to affect magnet program offerings in the three districts, though district officials have not publicly outlined how they would adjust to the loss in MSAP support.
