The Vermont Principals' Association agreed to pay Mid Vermont Christian School $566,000 in damages and attorneys' fees as part of a partial settlement in a federal lawsuit alleging religious discrimination.

The agreement, reached through mediation and filed in late April 2026, dismisses claims against VPA Executive Director Jay Nichols. The school, represented by Alliance Defending Freedom, continues to litigate against Vermont Secretary of Education Zoie Saunders and others.

The dispute originated in February 2023 when Mid Vermont Christian School's girls' varsity basketball team forfeited a playoff game against Long Trail School. The opposing team included a biological male athlete identifying as female. Guided by biblical convictions that boys and girls should compete separately to ensure fair and safe competitions, the school withdrew from the contest.

In response, the VPA expelled the entire pre-K through 12th-grade institution, enrolling about 111 students, from all interscholastic activities. The ban covered not only sports but also academic events like science fairs and spelling bees, extending through the 2023-24 and 2024-25 school years.

Coach Chris Goodwin recounted the fallout. Travel distances tripled as teams sought out-of-state opponents, leading to late-night returns that disrupted homework and rest. Strong squads missed state championship opportunities, and the school culture suffered without home games and community support. "The hardest part... is the sadness that these girls have to experience," Goodwin said, noting tears among players who had trained all season for playoffs.

"I never thought I would be in court for simply adhering to my Christian and commonsense belief that boys and girls are different," Goodwin added.

The school and one family sued state officials in 2023, claiming First Amendment violations. A federal district court denied a preliminary injunction, but the U.S. Court of Appeals for the Second Circuit reversed that ruling on September 9, 2025. The appellate decision reinstated the school for competitions pending the case's resolution.

ADF Senior Counsel David Cortman praised the settlement as "a giant win not only for the 1st Amendment but obviously for the school itself." He emphasized, "Religious schools and families shouldn’t be punished merely for engaging in their religious beliefs." Cortman further argued, "The government cannot punish religious schools... simply because the state disagrees with their religious beliefs."

Nichols responded that the VPA "will continue to follow Vermont law and advocate for all Vermont children." The association had enforced policies under the Vermont Public Accommodations Act supporting transgender participation.

Mid Vermont Christian School teams returned to VPA competitions this season following the 2025 injunction. The settlement underscores tensions between religious freedoms and state nondiscrimination mandates in youth sports.