The Education Department and the Department of Health and Human Services (HHS) announced on Monday they are seeking enforcement action against Minnesota over its policies around transgender athletes.

The two federal agencies opened a Title IX investigation against the state’s Department of Education and High School League in response to policies allowing transgender girls on women’s sports teams.

The agencies found the state guilty of a Title IX violation back in September and offered an agreement to resolve the violation, but the state refused it in December.

“Despite repeated opportunities to comply with Title IX, Minnesota has chosen defiance – continuing to jeopardize the safety of women and girls, deny them fair competition, and erode their right to equal access in educational programs and activities,” said Secretary of Education Linda McMahon. “As Minnesota reels from a massive fraud scandal exposing Governor Tim Walz’s dereliction of duty, today’s referral to DOJ underscores the state’s ongoing failure to safeguard its citizens and uphold the rule of law. The Trump Administration will not stop until accountability is delivered for Minnesota’s students.”

The Justice Department will continue the proceedings, with a potential loss of funding for the state from the Education Department and HHS at stake.

The Hill has reached out to Minnesota Gov. Tim Walz’s (D) office for comment.

The referral comes as the Trump administration has been battling with Minnesota leaders for weeks over Immigration and Customs Enforcement (ICE) in Minneapolis and allegations of fraud at day care centers.