Politico first reported that the administration was weighing cutting the funding in response to the state allowing transgender athletes to compete on teams that align with their identified gender. The administration says such a position violates federal bans on sex discrimination.

U.S. Education Secretary Linda McMahon said Tuesday that the state is at risk of funding cuts, but did not elaborate on the timing or what the cuts could be.

A Trump administration employee, who was not permitted to speak publicly about the administration’s plans, told POLITICO the Education Department may stop the disbursement of fo