The Education Department is proceeding with efforts to suspend or terminate federal funding because five districts did not sign a proposed resolution by Aug. 15.

A commuter walks past the Washington headquarters of the U.S. Department of Education on March 12, 2025. The department has imposed financial restrictions on five Virginia school districts for policies allowing transgender students to use bathrooms consistent with their gender identity.

The Education Department investigated the schools’ transgender policies after a complaint was filed by a group founded by senior White House official Stephen Miller.