The Trump administration is suing the California Department of Education and California Interscholastic Federation after the state continued to allow transgender athletes to compete.
The president signed an executive order in February 'keeping men out of women's sports' and banning trans athletes from competing in women's divisions.
However, trans athletes have continued to compete in the state, prompting a federal civil rights investigation.
The lawsuit comes after California on Monday refused to comply with a demand from the Trump administration to sign a proposed resolution agreement on the issue.
Trump has threatened to withhold federal funding from the state and Education Secretary Linda McMahon said on X that California would 'be hearing from' Attorney General Pam Bondi after learning of the resolution agreement rejection.
More to follow