Jefferson County School District R-1’s lawsuit comes after the U.S. Department of Education threatened to withhold federal funding over transgender policies. Adobe StockColorado's second-largest school district is asking a court to address a conflict between state law and federal guidelines that could cost it more than $50 million in funding. "Because the new federal guidelines and state law conflict, Jeffco has asked the court to provide clarity about which direction the district must follow. This lawsuit is a procedural legal step that seeks guidance from the courts on how to resolve that conflict." Public schools in other states, including Kansas , Maryland , and Michigan , have been the target of similar probes by the agency.