A federal appeals court has reinstated a Vermont Christian school in statewide competitions after it was banned by state officials for forfeiting a basketball game against a team with a transgender athlete.In a Sept. 9 ruling, the U.S. Court of Appeals for the Second Circuit overturned a district court order and granted a preliminary injunction to Mid Vermont Christian School to rejoin the Vermont Principals' Association (VPA) while the case continues. The panel said the school is "likely to succeed" on its Free Exercise claim because the VPA decision demonstrated "hostility toward the school's religious beliefs."The legal fight began in February 2023, when Mid Vermonts girls basketball team, the Eagles, forfeited a playoff game against Long Trail School after learning a biological male transgender student was on the opposing roster. At the time, school officials cited safety and fairness concerns for female players competing against biological male athletes.Three weeks later, the VPA expelled the Christian school from all state-sponsored sports and non-athletic events, including spelling bees, science fairs and debate competitions.CALIFORNIA GIRLS' VOLLEYBALL PLAYERS REFUSE TO PARTICIPATE ALONGSIDE TRANSGENDER TEAMMATEAlliance Defending Freedom, a religious liberty group, sued state officials on behalf of the school and one of its families. The lawsuit argued the school was punished for exercising its religious beliefs protected under the First Amendment.According to court documents, VPA Executive Director Jay Nichols publicly criticized Christian schools two days after the forfeit, calling Mid Vermonts decision "blatant discrimination under the guise of religious freedom."The VPAs appeals committee also dismissed the schools fairness and safety concerns in girls sports as a "myth" and called its religious objection "wrong.""It is a myth that transgender students endanger others when they participate in high school sports or create unfair competition," the committee wrote in its ruling.FEDERAL JUDGE STRIKES DOWN MINNESOTA LAW BARRING RELIGIOUS COLLEGES FROM STATE PROGRAMHead coach Chris Goodwin, who has led the Eagles for nearly a decade and whose daughter plays on the team, told Fox News Digital the forfeit was a difficult but necessary decision."Its clear in Scripture that there is a difference between males and females. So if we decided to play that game, in essence, wed be agreeing with the states belief system that boys can be girls and male athletes can be female athletes," he said.Goodwin said safety and fairness were also concerns. After the expulsion, athletes had to drive hours away to New Hampshire, Connecticut, and Massachusetts to compete in a Christian league, losing exposure and scholarship opportunities in the process.He called the punishment "excessive" and said the VPA was trying to "make an example" of the school.CALIFORNIA SCHOOL BOARD MEETING DESCENDS INTO EMOTIONAL CLASH AMID TRANS VOLLEYBALL PLAYER CONTROVERSY"Athletics in high school and junior high is a really big part of the overall educational experience. So for that to be taken away from the kids was very disappointing, and for them to lose out on opportunities to be recognized in the state as all-state athletes or all-conference athletes and also have the possibility of receiving scholarships is a big deal. And they were denied that opportunity by the state," he said.David Cortman, senior counsel with Alliance Defending Freedom, told Fox News Digital the ruling sets a precedent that should protect other religious schools faced with similar situations. He celebrated the decision."So having to force the school to make a choice between standing up for their religious beliefs and losing out on all their athletics was an improper choice for the state to make," he said. "So were glad the court righted that wrong and are now looking forward to the school getting back into all the athletics and being treated on the same basis as everybody else."The Second Circuits order grants Mid Vermont a preliminary injunction to rejoin the VPA while the lawsuit continues.VPA Executive Director Jay Nichols told Fox News Digital the VPA doesn't comment on pending legal matters but that it doesn't discriminate against anyone based on their religious beliefs.Other defendants named in the suit, Vermont Secretary of Education Zoie Saunders and State Board of Education Chair Jennifer Deck Samuelson, said they could not comment on pending litigation. Christine Bourne, Heartland School Board, Randall Gawel and Waits River Valley School Board did not respond to requests for comment.The case highlights growing debates and legal fights across the country over transgender athletes competing in public school sports. The U.S. Supreme Court has agreed to review state bans on transgender athletes in public schools this fall.