The Trump administration has threatened to withhold $81.3 million in federal sex education grants from states that refuse to remove references to gender identity, setting up a nationwide confrontation over curriculum standards.

At a Glance

• Forty states, five territories, and Washington, D.C. received compliance letters on August 26, 2025.
• California became the first state to lose federal funding in August for refusing to revise its sex education curriculum.
• A January 2025 executive order mandates federal programs recognize only two sexes—male and female.
• The enforcement affects the Personal Responsibility Education Program (PREP), which funds adolescent health education.
• States and territories have 60 days to comply or risk losing federal support.

Federal Crackdown on Gender Content

On August 26, 2025, the Department of Health and Human Services (HHS) issued compliance letters to 46 states and territories. The letters instructed education departments to strip references to transgender and nonbinary identities from PREP-funded sex education curricula.

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Acting Assistant Secretary Andrew Gradison emphasized that federal funds would not be used to support what he called “ideological agendas.” Administration officials framed the directive as one of the most sweeping federal interventions in education policy, underscoring the scale of the administration’s approach.

California as Test Case

Earlier in August, California lost its PREP funding after declining to comply with the new requirements. The loss amounted to several million dollars and made California the first state penalized under the policy. Officials in Sacramento have given no indication that the state will revise its curriculum to restore funding.

The administration views California’s case as a precedent-setting enforcement move. HHS officials noted that other states maintaining gender identity content could face similar outcomes, signaling that the financial consequences will extend far beyond a single jurisdiction.

States Confront Policy Deadline

The executive order allows states and territories a 60-day window to revise their programs or risk losing PREP funds. For many education departments, this requires a rapid reassessment of curriculum standards. Programs that include recognition of transgender or nonbinary students must be altered to retain eligibility for federal support.

Supporters of the administration’s policy argue it prioritizes what they describe as biological definitions of sex and parental authority in education. They contend the directive prevents contested social theories from being funded with federal money. Critics, including LGBTQ+ advocacy groups, argue the policy restricts states’ ability to provide inclusive and comprehensive health education.

Legal and Constitutional Questions

The enforcement derives from President Trump’s January 2025 executive order mandating federal recognition of only two sexes based on biological definitions. Administration officials present the move as restoring “scientific integrity.”

Civil rights organizations, including the Human Rights Campaign, argue the directive raises constitutional concerns. They contend it excludes recognition of transgender students and could face legal challenges under anti-discrimination provisions. With more than $81 million at stake and a rapidly closing compliance window, states face difficult choices balancing funding needs against curriculum policy.

Sources

Reuters
Bloomberg
Politico
Associated Press
Human Rights Campaign