Maine has agreed to drop a lawsuit against the Agriculture Department that challenged USDA's withholding of federal nutrition funds over the state's treatment of transgender athletes.

Under the terms of a settlement agreement, USDA also agreed to "refrain from freezing, terminating or otherwise interfering with the state of Maine's access" to USDA funds based on alleged violations of Title IX "without first following all legally required procedures."

The lawsuit came after Agriculture Secretary Brooke Rollins alerted Maine Governor Janet Mills to the freeze in an April 2 letter, in which she alleged violations of Title IX. According to court documents, funding caught in the freeze included approximately $97,085 for administration of the Child and Adult Care Food Program, $469,655 in state-level operating expenses, $917,023 in Child Nutrition Technology Innovation Grants, $37,544 in National School Lunch Program Equipment Assistance Grants and $592,838 in Farm to School State Formula Grants.

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A judge on April 11 ordered USDA to resume processing the funds USDA had withheld after finding that the federal government's actions were "contrary to law" since it did not provide notice and a hearing prior to freezing the funds under Title IX.

The Agriculture Department did not immediately respond to a request for comment on the settlement.

In a statement, Maine Attorney General Aaron Frey said, "It’s unfortunate that my office had to resort to federal court just to get USDA to comply with the law and its own regulations.  But we are pleased that the lawsuit has now been resolved and that Maine will continue to receive funds as directed by Congress to feed children and vulnerable adults.”

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