CSU Sues U.S. Department of Education Over Title IX Probe of Transgender Athlete

California State University (CSU) has filed a lawsuit against the U.S. Department of Education (DOE) challenging findings that San Jose State University (SJSU) violated federal civil rights law by allowing a transgender woman to compete on its women’s volleyball team. The lawsuit, filed March 6 in the Northern District of California, seeks to prevent the federal government from cutting funding to SJSU if the university does not sign a proposed resolution agreement.

Background of the Dispute

The DOE initiated an investigation into SJSU following allegations that allowing a transgender athlete to participate on the women’s volleyball team from 2022 to 2024 violated Title IX. In January 2026, the DOE issued a Letter of Findings concluding that SJSU had violated Title IX. The proposed resolution agreement included requirements such as banning transgender women from women’s athletic programs, retroactively awarding honors to cisgender female athletes, and issuing apologies to athletes who competed against the transgender athlete.

CSU’s Legal Argument

CSU argues that its policies during the relevant period (2022-2024) were consistent with both federal law and the DOE’s own interpretation of Title IX at the time. The university points to rulings by the 9th U.S. Circuit Court of Appeals in 2023 and 2024 that upheld the rights of transgender athletes. CSU contends that it would have faced legal liability had it excluded the athlete solely based on her transgender status, given the prevailing legal interpretations at the time.

“Our position is simple: We have followed the law and cannot be punished for doing so,” said SJSU President Cynthia Teniente-Matson in a statement. CSU attorneys further argue that any changes to the law cannot be applied retroactively.

Potential Financial Impact

The potential loss of federal funding is significant. According to CSU, approximately 66% of San Jose State students receive federal financial aid, totaling roughly $130 million annually. $175 million in federally funded research, including projects in autonomous driving and space travel, could be disrupted.

Broader Legal Landscape

The CSU lawsuit is part of a larger legal battle surrounding transgender athletes’ participation in women’s sports. Trump’s executive order restricting transgender athletes’ participation is currently being challenged in multiple lawsuits. The Supreme Court is also expected to rule on state laws banning transgender athletes from women’s teams this summer.

During oral arguments in January, the Supreme Court appeared poised to uphold the bans, though the impact on California schools, which have state laws protecting transgender students’ rights, may be limited depending on the court’s ruling.

Expert Commentary

Shivali Patel, a senior director at the National Women’s Law Center and a Title IX attorney, noted that federal law limits the government’s ability to rescind funds from an entire institution, suggesting the DOE’s threat may be legally vulnerable.

CSU’s Commitment to Inclusivity

CSU stated that its policies supporting transgender students and prohibiting gender identity discrimination remain in place. The university system “remains unwavering in its commitment to fostering an inclusive, respectful, and safe environment for all students, faculty, and staff — including LGBTQ+ community members.”

CSU has stated that it will comply with any future changes to the law or requirements imposed by the Supreme Court or Ninth Circuit.