US appeals court reinstates Virginia school boards’ lawsuits — The Hill

A US federal appeals court has reinstated lawsuits by the school boards of Fairfax and Arlington counties in Virginia against the US Department of Education. The school boards are challenging a change in the federal funding procedure after refusing to amend rules concerning transgender students, The Hill reports.

Appeals court decision

A panel of the US Court of Appeals for the Fourth Circuit ruled by a two-to-one vote. It found that the lower court was wrong to conclude that the school boards had filed in the wrong court and should have brought their claims before the specialized Court of Federal Claims, which hears contract disputes with the government.

Judge Allison Jones Rushing said that some of the school districts’ claims are not contractual in nature. Therefore, in her view, dismissing the lawsuits in full for lack of jurisdiction was erroneous. At the same time, the majority stressed that it had not assessed the merits of the lawsuits.

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Grant dispute

The school boards filed lawsuits last year after the Trump administration designated them as “high risk.” The reason was the districts’ refusal to change a policy allowing transgender students to use bathrooms and locker rooms of their choice.

This status means that payments under Education Department grants are made only as reimbursement for expenses already incurred, rather than in advance. Judge Albert Diaz joined the majority decision. Judge Julius Richardson disagreed with his colleagues, believing that the districts’ claims effectively concern contract payments and should be heard by the Court of Federal Claims.