Explainer: How the U.S. Department of Education’s investigation into MSHSL could unfold

The Minnesota State High School League’s interpretation of President Donald Trump’s executive order banning transgender athletes from competing in girls and women’s sports came with immediate fallout.

The Department of Education’s Office of Civil Rights (OCR) announced plans to investigate the MSHSL. That announcement has raised many questions. Most notably: What comes next?

Athletic associations and schools across the country are being checked by the OCR to determine if they are noncompliant with the new federal policy. On Wednesday, the Department of Education added the MSHSL, the nonprofit that oversees high school athletics in Minnesota, to that list under the belief it plans to violate the executive order.

The consequences for associations and schools that refuse to correct noncompliance include suspension, termination or rescindment of federal funding.

The impact of that threat on the MSHSL, however, is unclear.

The league, according to its website, is a voluntary nonprofit organization that “neither solicits, nor receives” state or federal government funding. Instead, it generates revenue from ticket sales at its various state tournaments, broadcast rights and corporate partnerships. The league also receives membership dues from each school.

Membership-fee-based organizations, like the MSHSL, are considered publicly supported charities by the Internal Revenue Service. Finances submitted to the Minnesota attorney general by the MSHSL note the league received “direct public support” of $2.5 million but zero dollars in government grants for fiscal year 2023. The league also generated $10.7 million in “other” revenue that fiscal year, encompassing the league’s stated primary sources of revenue.

For the 2024-25 school year, the MSHSL charged each of its more than 500 member schools a membership fee of $100, a registration fee of $160 for athletics and activities per activity, and a per-student cost of $2.25. Over 240,000 students participate in the league’s more than 50 activities. The league said membership and registration fees are “used to offset costs of state tournaments and help pay for catastrophic and concussion insurance.”

How the Department of Education’s investigation into the league will unfold is a little more clear.

According to language on its website, once the OCR determines if the complaint contains enough questionable information to proceed, it will review documents and conduct interviews. The OCR will then determine whether there is enough evidence to support a conclusion of failure to comply.

If it’s decided the evidence exists, the OCR will attempt to reach a voluntary resolution with the investigated party. If that does not happen, its general courses of action are to either refuse further federal financial assistance or refer the case to the Department of Justice.

The MSHSL said in a statement Wednesday that it intends to fully cooperate with any investigation.

The MSHSL and its advisers have said the federal order is in direct violation of the equal protection clause of the Minnesota Constitution, as well as a violation of the 1973 Minnesota Human Rights Act. Officials at the Department of Education disagree, with the OCR contending the investigation is warranted as a violation of Title IX legislation, the landmark 1972 legislation that prohibits discrimination on the basis of sex.

“State laws do not override federal antidiscrimination laws, and these entities and their member schools remain subject to Title IX and its implementing regulations,” the Department of Education stated Wednesday.

The executive order allows a 60-day window for athletics associations to decide what course of action to take in implementing the ruling.

The MSHSL maintains it never rejected the executive order. The league, in a statement on its website, said it is requesting a formal opinion from the Minnesota attorney general for guidance.

Citing the Data Privacy Act, the MSHSL does not require, nor does it keep, records of transgender athletes in Minnesota.