The Obama Administration responded to the nasty North Carolina "Bathroom Bill" by saying Title IX of the Civil Rights Act covers gender identity, and thus transgender people. If schools want federal money they must allow transgender students use facilities and join sports teams that match their gender identity. Texas and 12 other states sued to stop that requirement. A second suit filed by Nebraska was joined by 10 more states (alas, including Michigan).
A federal district judge has ruled on the Texas case. Judge Reed O'Connor blocked Obama's directive. Obama didn't follow procedures in giving proper notice before putting new procedures into effect. Also, Obama's view is an incorrect interpretation of Title IX.
Two little problems with O'Connor's ruling. First, it contradicts what the Fourth Circuit recently said. Second, O'Connor says his injunction to stop Obama's procedures applies nationwide – again, in contradiction of the Fourth Circuit.
Even with the injunction in place schools can still implement policies to protect transgender youth. And parents can still sue school districts for discrimination.