The next move is up to the Trump administration after California rejects demand to bar trans-athletes from women's and girls' sports. State funding is threatened.

The University of Pennsylvania and the federal government have reached an agreement that the Ivy League school will adhere to the Trump administration's ban on transgender athletes competing in women's sports.

The decision by California officials to defy a Trump administration order to ban trans athletes from competing on teams matching their gender identity likely sets the state up for a legal showdown.