In recent years, a number of state legislatures considered bills that would restrict access to multiuser restrooms, locker rooms, and other sex-segregated facilities (bathroom bills) on the basis of a definition of sex or gender consistent with sex assigned at birth—also known as biological sex. In nearly every state the proposed legislation was not passed and did not become law.

A recent ruling from the United States Court of Appeals for the Third Circuit (in Philadelphia) allowed transgender students to use bathrooms and locker rooms that are consistent with the students' gender identities, as opposed to the sex they were determined to have at birth. The plaintiffs—a group of high school students who identify as being the same sex they were determined to have at birth (cisgender)—alleged that the school’s bathroom and locker room policy violated their constitutional rights of bodily privacy, as well as Title IX, and Pennsylvania tort law.

The Third Circuit Court of Appeals determined that the presence of transgender students in the locker and restrooms is no more offensive to Constitutional or Pennsylvania privacy law interests than the presence of the other students who are not transgender, and that their presence does not infringe on the plaintiffs' rights under Title IX. This ruling from the Third Circuit Court of Appeals is the law in a limited geographic area, as the United States Supreme Court declined to hear the case.

In Vermont, there has been no successful passage of 'bathroom bills' that would restrict access to multiuser restrooms and locker rooms based on biological sex at birth. Vermont law and policies tend to be inclusive of transgender individuals' rights. Following the precedent set by the United States Court of Appeals for the Third Circuit, which is not binding in Vermont but can be influential, transgender students in Vermont would likely be allowed to use bathrooms and locker rooms consistent with their gender identity. This aligns with the Third Circuit's ruling that the presence of transgender students in sex-segregated facilities does not violate the constitutional rights of privacy or Title IX protections of cisgender students. It's important to note that while the Third Circuit's decision is not law in Vermont, it reflects a legal trend that Vermont state laws and policies may support, emphasizing the protection of rights for transgender individuals in public facilities.