The district is asking the court to uphold its policy on restricting transgender students' access to bathrooms and locker rooms that align with their gender identities.
Under the deal, the federal Department of Education will again process student loan forgiveness applications for borrowers in two loan programs that link payments to income.
New borrowing limits and stricter repayment terms for federal financial aid are coming as part of President Donald Trump's "One Big Beautiful Bill Act."
The student called the accusation "completely false" and said the essay's writing style was influenced by his learning and neurological disabilities and the tutoring he receives for them.
Language added to this year's state budget loosened testing standards for the religious schools and delayed the implementation of certain educational standards, the lawsuit states.
The federal Department of Education informed state officials last month it had ended the program, which recognized top-performing schools in the nation.