The Trump administration’s fight to keep biological males out of girls’ sports suffered a California court setback Monday — but the Justice Department is gearing up for the next round.

US District Judge Cynthia Valenzuela, a Democrat, dismissed the DOJ’s lawsuit challenging California’s policy allowing transgender girls to compete on girls’ school teams, leaving the state’s controversial rules in place.

The ruling, however, was not a finding that California’s policy is required by Title IX.

Instead, Valenzuela dismissed the case after determining that the federal government had not adequately notified California that its federal funding could…

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