The Justice Department on Monday filed a lawsuit against the Minnesota Department of Education (MDE) and the Minnesota State High School League alleging both were in violation of Title IX for allowing transgender athletes to compete in girls sports.

The suit also demanded that transgender athletes be prohibited from competing in future female competitions.

The latest action was threatened last fall by the U.S. Department of Education Office for Civil Rights, citing both state organizations were in violation of Title IX by permitting males to participate in female-designated athletic programs and to have access to female-only sensitive spaces, such as locker rooms and restrooms. The organizations were told to accept the federal findings or face the possibility of funding being suspended or terminated.

The issue caused considerable division among state and local elected officials. Prior Lake-Savage Area school board members Lisa Atkinson, Charles Johnson and Jessica Mason were joined by more than 100 other board members from across Minnesota who had signed on as individuals to a letter that was sent to state officials requesting the state’s “swift compliance” to the federal requests. The letter was also signed by Dan White, who then served as the PLSAS board chair.

The MDE reportedly receives close to $3 billion each year from the U.S. Department of Education and the U.S. Department of Health and Human Services. The Justice Department indicated those funds could be in jeopardy if the state does not comply.