By ALEXANDRA OLSON, AP Business Writer

NEW YORK (AP) — A U.S. civil rights agency has determined that the federal government can bar transgender employees from using bathrooms aligned with their gender identity, dismissing an appeal from a transgender woman who worked for the U.S. Army.

The Equal Employment Opportunity Commission decided Thursday against a civilian IT specialist who worked for the Army at Fort Riley, Kansas. The EEOC repeatedly declared her to be man even though the worker informed her managers that she identified as a woman in the summer of 2025 when she asked to use bathrooms and locker rooms aligned with her gender identity. Her request was declined and she filed a complaint with the Army, which was dismissed.

The employee, who was not identified, appealed to the EEOC, which decided against her, citing President Donald Trump’s executive order saying the federal government would only recognize two immutable sexes, male and female. The EEOC’s sole Democratic commissioner, Kalpana Kotagal, dissented in the 2-1 decision.

The opinion retreated from the EEOC’s landmark finding a decade ago that another transgender Army employee had been discriminated against because her employer refused to use her preferred pronouns or allow her to use bathrooms based on her gender identity. In its new finding, the EEOC found that the Army’s decision did not violate Title VII of the 1964 Civil Rights Act, which prohibits discrimination on the basis of sex, race, religion and national identity.

EEOC Chair Andrea Lucas has aggressively moved to implement Trump’s orders concerning gender identity, dropping lawsuits on behalf of transgender and nonbinary workers who were fired or harassed, and amending harassment guidelines to exclude language stating that deliberately misgendering workers or barring them from bathrooms aligned with their gender identity could constitute harassment. Many Republican lawmakers have welcomed her decisions and criticized the EEOC under previous administrations for overstepping its authority on gender identity issues.

“Today’s opinion is consistent with the plain meaning of ‘sex’ as understood by Congress at the time Title VII was enacted, as well as longstanding civil rights principles: that similarly situated employees must be treated equally,” Lucas said in a statement. “Biology is not bigotry.”

The EEOC’s argued that interpreting Title VII as allowing “trans-identifying” employees into bathrooms of their gender identity would be tantamount to doing away with single-sex facilities.

“All bathrooms would be mixed-sex by law, and every employee would be required to perform bodily and other private functions in the presence of the opposite-sex,” the EEOC wrote.

Kotagal condemned the decision in a statement posted on her LinkedIn page.

“I strongly disagree with the decision’s substance and tone. The decision rests on the false premise that transgender workers are not worthy of the agency’s protection from discrimination and harassment and that protecting them threatens the rights of other workers. Worse, it suggests that transgender people do not exist,” Kotagal said.

Several transgender and gender nonconforming federal employees have filed formal discrimination complaints over the Trump administration’s policies, which have included stripping government websites of “gender ideology” and reinstituting a ban on transgender service members in the military.

In a quasi-judicial function, the EEOC handles appeals by federal employees whose complaints have been dismissed by their agency’s civil rights offices.

Thursday’s decision applies to all federal agencies but not to private employers, and it does not set a precedent that U.S. courts must follow. In the case of private sector workers, the EEOC investigates complaints and can decide whether to file lawsuits on their behalf, but does not issue decisions.

The Army employee can file a request with the EEOC for reconsideration within 30 days, or she can file a new case in federal district court with 90 days, according to the EEOC.

In her statement, Kotagal argued that a landmark 2020 Supreme Court ruling, Bostock V. Clayton Country, reinforced that Title VII protects transgender workers from discrimination, and she criticizes the EEOC for “rushing” its decision while a federal district court is addressing similar issues in a class action case filed federal employees.

But in its decision, the EEOC argued that Bostock only established that employers cannot fire transgender employees or refuse to hire them based on their gender identity, making no decision on the issue of bathrooms or locker rooms or on the definition of sex.

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Echoing a stance long held by Lucas, the EEOC argued that allowing transgender workers into bathrooms and locker rooms of their choice would be dangerous to women, violating their expectations for privacy in such spaces. That reasoning rested on the EEOC’s repeated argument that the U.S. Army employee is not a woman and in fact was demanding “special treatment” by asking to be allowed into a bathroom of “the opposite sex.”

The EEOC cited Trump’s executive order and various dictionary entries in an extensive explanation of its insistence that “the complainant’s sex is male, from the moment of his conception and continuing even after he began to identify as transgender.”

Social conservatives have applauded that view but the American Medical Association and other mainstream medical groups have said extensive scientific research suggests sex and gender are better understood as a spectrum than as an either-or definition. Some biologists have criticized Trump’s executive order as scientifically unsound because among other problems, it sidesteps variations that include intersex people, who have physical traits that don’t fit typical definitions for male or female categories. In a footnote, the EEOC said intersex individuals present “rare and unique circumstances” that “can be evaluated on a case-by-case basis.”

The Congressional Equality Caucus and several civil rights advocacy groups, including the Human Rights Campaign and the National Women’s Law Center, condemned the decision

“Andrea Lucas has spent her time leading EEOC undermining enforcement of minority workers’ rights — she’s exactly who the Commission was designed to fight back against,” said Rep. Mark Takano, chair of the Congressional Equality Caucus.

The Defense Department referred questions to the Department of Justice and the Army, which did not immediately reply to requests for comment.

AP Business Writer Claire Savage contributed to this report from Chicago.

The Associated Press’ women in the workforce and state government coverage receives financial support from Pivotal Ventures. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Minnesota’s budget outlook for the current two-year budget cycle has improved considerably, even as longer-term projections still show a shortfall to come.

The projected budget surplus for 2026 and 2027 is now $3.7 billion, which is $1.3 billion higher than November estimates, thanks to higher revenues coming in from some of the state’s more “volatile” sources, according to the Minnesota Management and Budget office. For lawmakers, that’s the good news.

And the bad? Forecasts still show spending growth outpacing revenue growth by fiscal year 2029, leading to a “significant structural imbalance,” according to MMB. The projected general fund balance for the 2028-2029 biennium is now $377 million. Previous estimates had foreseen a shortfall of as much as $6 billion by then, but that worrisome number has shrunk due to spending cuts and new revenue forecasts. It’s still not looking rosy in the eyes of state lawmakers.

Then there’s the question of shifting policies at the federal level — including what Gov. Tim Walz has described as punitive measures — as well as “missing or incomplete data due to recent federal government shutdowns” which “introduce significant uncertainty to the projections,” according to MMB.

On Wednesday, Vice President JD Vance announced that the Trump administration would “temporarily halt” nearly $260 million in Medicaid funding to the state of Minnesota over fraud concerns — an announcement that came even as the Walz administration and lawmakers rolled out new anti-fraud measures this week.

Medicaid is a healthcare safety net for low-income residents and helps pay for a wide range of services, from routine and emergency medical care to nursing home care and housing services. State officials have said they believe the intent of the federal government is to “defer payment” until a review of 14 high-risk Medicaid programs is complete, but that process could go on for months.

Rising health care costs, slower growth

Rising health care costs and slow economic growth have become budget albatrosses, with the Department of Health and Human Services experiencing some of the greatest spending increases, according to state officials. Among the biggest drivers of state costs at the March forecast were special education and long-term disability waivers. The state has already identified special education transportation reimbursements as a target for cuts.

Minnesota’s difficult state budget forecasts over the past few fiscal quarters have represented a turn-around from late 2022, when MMB projected a nearly $18 billion surplus in the coming biennium.

The Democratic-Farmer-Labor-controlled state government passed a more than $70 billion state budget the following year that grew spending by nearly 40%, though much of that stemmed from one-time spending.

In June of last year, the Legislature — which is divided closely between DFL and Republicans — passed a $66 billion two-year budget, close to $5 billion less than the 2023 budget.

“Today’s forecast is a reminder that when our economy grows, the state’s budget outlook improves and creates more opportunities for all Minnesotans,” said Doug Loon, president and chief executive officer of the Minnesota Chamber of Commerce, in a written statement. “It’s concerning that spending growth continues to outpace revenue growth. Enacting policies that grow our economy can help eliminate this gap and reduce pressure on taxpayers.”

Walz and elected leaders from both major parties were expected to deliver remarks after the full budget forecast is presented early Friday afternoon.

Also Friday, student protesters against Immigration and Customs Enforcement action planned a walk-out and sit-in at the state Capitol rotunda around 1 p.m.

Past state budgets

Here’s a rundown of the past two-year budgets:

• 2025 — $66 billion.

• 2023  — $72 billion.

• 2021 — $52 billion.

• 2019 — $48 billion.

• 2017 — $46 billion.

• 2015 — $41.5 billion.

• 2013 — $38 billion.

• 2011 — $35.7 billion.

This story will be updated.

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By MARCIA DUNN

NASA said Friday it’s adding an extra moon mission by Artemis astronauts before attempting a high-risk lunar landing with a crew.

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NASA moves its Artemis II moon rocket off the launch pad for more repairs

The shake-up in the flight lineup and push for a faster pace came just two days after NASA’s new moon rocket returned to its hangar for more repairs and a safety panel warned the space agency to scale back its overly ambitious goals for humanity’s first lunar landing in more than half a century.

Artemis II — a lunar fly-around by four astronauts — is off until at least April because of rocket problems.

The follow-up mission — Artemis III — had been targeting a landing near the moon’s south pole by another pair of astronauts a year or two later. But with long gaps between flights and concern growing over the readiness of a lunar lander and moonwalking suits, NASA’s new administrator Jared Isaacman announced that mission would instead focus on launching a lunar lander into orbit around Earth for docking practice by Orion capsule astronauts in 2027.

The new plan calls for a moon landing — potentially even two moon landings — by astronauts in 2028.

“This is going to be our pathway back to the moon,” Isaacman said.

NASA’s Artemis II SLS (Space Launch System) moon rocket with the Orion spacecraft slowly rolls back towards the Vehicle Assembly Building at the Kennedy Space Center, Wednesday, Feb. 25, 2026, in Cape Canaveral, Fla. (AP Photo/John Raoux)

The first Artemis test flight was plagued by hydrogen fuel leaks and helium flow problems before liftoff without a crew in 2022, the same things that struck the Space Launch System rocket on the pad at NASA’s Kennedy Space Center earlier this month.

Isaacman stressed that “it should be incredibly obvious” that three years between flights is unacceptable and that he’d like to get it down to one year or even less.

During NASA’s storied Apollo program, he said, astronauts’ first flight to the moon was followed by two more missions before Neil Armstrong and Buzz Aldrin landed on the moon. What’s more, he said, the Apollo moonshots followed one another in quick succession, just as the earlier Projects Mercury and Gemini had rapid flight rates, sometimes coming just a few months apart.

“No one here at NASA forgot their history books,” Issacman said. “We shouldn’t be comfortable with the current cadence. We should be getting back to basics and doing what we know works.”

NASA’s Artemis II SLS (Space Launch System) moon rocket with the Orion spacecraft slowly rolls back towards the Vehicle Assembly Building at the Kennedy Space Center, Wednesday, Feb. 25, 2026, in Cape Canaveral, Fla. (AP Photo/John Raoux)

To pick up the pace and reduce risk, NASA will standardize Space Launch System moon rockets moving forward, Isaacman said.

The Aerospace Safety Advisory Panel recommended this week that NASA revise its objectives for Artemis III “given the demanding mission goals.” It’s urgent the space agency do that, the panel said, if the United States hopes to safely return astronauts to the moon. Isaacman said the revised Artemis flight plan addresses the panel’s concerns and is supported by industry and the Trump administration.

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

By JILL LAWLESS

LONDON (AP) — An emphatic election victory for Britain’s environmentalist Green Party is a nightmare for Prime Minister Keir Starmer that raises questions about how long he will continue as leader.

Less than two years after winning power in a landslide, Starmer’s center-left Labour Party not only lost a longtime stronghold in its northern England heartlands — it came third, finishing behind both the left-leaning Greens and the hard-right party Reform U.K.

Thursday’s election in the Gorton and Denton constituency of Greater Manchester was for just one seat out of 650 in the House of Commons. But it’s a glimpse into the messy new reality of British politics, and its consequences could be far-reaching.

Here are takeaways from the election.

Britain’s Prime Minister Keir Starmer meets local party members, in London, Friday, Feb. 27, 2026. (Stefan Rousseau/PA via AP)

Starmer is in trouble

The result is a heavy blow to Starmer, whose leadership has staggered through a series of crises and suffered a near-death experience earlier this month.

Since being elected in July 2024, Starmer has struggled to deliver promised economic growth, repair tattered public services and ease the cost of living. His government has been sidetracked by missteps and U-turns over welfare cuts and other unpopular policies.

The next national election does not have to be held until 2029, meaning the main threat to Starmer comes from within his own party. Under British rules, the governing party can change prime minister without having to go to voters.

Three weeks ago it looked like that might happen, when indirect fallout from a trove of Jeffrey Epstein files released in the United States caused discontent to boil over.

Several Labour lawmakers and the party’s leader in Scotland called for Starmer to resign, his chief of staff and communications director quit, and his premiership teetered on the brink.

Starmer vowed to stay, and got a reprieve after potential leadership rivals publicly backed him. But his already precarious position is now even shakier, and he faces peril after May 7 local and regional elections, when Labour is expected to do badly.

Jon Trickett, a Labour lawmaker on the left of the party, said Friday that Starmer should “look in the mirror and make a decision about his own personal future.”

Britain has a fractured political system

Green Party leader Zack Polanski said the result shows that “Labour’s electoral stranglehold is over.”

For a century, U.K. national politics has been dominated by two parties: the Conservatives on the right and Labour on the left. Unlike many European countries, Britain does not have a system of proportional representation, meaning that smaller parties have struggled to break through.

But that is changing. Scotland, Wales and Northern Ireland have their own distinct parties. And new parties on both left and right are snatching an increasing share of the vote.

Reform U.K., the latest party led by anti-immigration campaigner Nigel Farage, has just eight seats in the House of Commons but has topped opinion polls for months, ahead of both Labour and the Conservatives.

The Greens, under their new leader, the “eco-populist” Polanski, have broadened their message beyond environmental concerns to focus on issues including the cost of living, legalization of drugs and support for the Palestinian cause, positioning themselves as an alternative to Labour for left-liberal voters.

Newly elected lawmaker Hannah Spencer is a 34-year-old plumber who in her victory speech apologized to customers for having to cancel appointments so she could start her new job in Parliament.

The Green Party candidate Hannah Spencer speaks after winning the Gorton and Denton by-election, Manchester, England, Friday, Feb. 27, 2026. (AP Photo/Jon Super)

She spoke of issues that should be Labour’s terrain: the cost of living, frayed public services and the erosion of opportunities in former industrial areas that traditionally voted Labour.

“For people here in Gorton and Denton who feel left behind and isolated: I see you and I will fight for you,” Spencer said.

Green Party newly elected Member of Parliament Hannah Spencer looks on as party leader Zack Polanski speaks at a press conference after her win in the Gorton and Denton by-election, in Manchester, England, Friday, Feb. 27, 2026. (AP Photo/Jon Super)

Labour is caught in the middle

The result drives home Labour’s predicament: It faces challenges from both left and right.

Thursday’s election was in a diverse area that has traditional working-class neighborhoods — once strongly Labour, now tilting toward Reform — as well as large numbers of university students and Muslim residents. Many of them feel disillusioned by Labour’s centrist shift under Starmer and the government’s perceived slowness at criticizing Israel’s conduct of the war against Hamas in Gaza — fertile ground for the Green Party.

Rob Ford, a professor of political science at the University of Manchester, said the result was “the nightmare scenario for the incumbent government.”

“They have fallen into the electoral Valley of Death,” Ford wrote on social media. “Rejected in the center. Rejected on the right. And now rejected on the left.”

In the wake of the defeat, many in Labour called for a change of direction, saying efforts to win over “Reform-curious” voters with policies aimed at curbing immigration had alienated many liberal electors.

“If the Labour Party thinks it can win an election by moving on to the territory which has been occupied by Mr. Farage and his party, they’ve made a big mistake,” Trickett told Times Radio. He said the party had made the mistake of assuming “that the progressive voters had nowhere else to go.”

The count begins after voting ends in the Gorton and Denton by-election, Manchester, England, Thursday, Feb. 26, 2026. (AP Photo/Jon Super)

Politics is polarized

The contest was tinged by the increasing bitterness and polarization in British politics. Reform leader Farage said he had contacted the election regulator and police about reports by an observer group about cases of “family voting,” when more than one person enters a voting booth. It is illegal for one person to direct another how to vote.

Farage claimed the incidents were in “predominantly Muslim areas.”

Opponents accused Reform of echoing U.S. President Donald Trump by attempting to discredit the result of a free and fair election.

Jeffrey Epstein was a factor

Starmer has been tainted by fallout from scandals about Jeffrey Epstein, a man he never met and in whose crimes he’s not implicated.

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The leadership crisis earlier this month was sparked by revelations about the relationship between sex offender Jeffrey Epstein and Peter Mandelson, the veteran Labour politician appointed by Starmer in 2024 to be U.K. ambassador to Washington.

Police are investigating emails suggesting Mandelson passed sensitive government information to Epstein a decade and a half ago. Mandelson was arrested and questioned by detectives this week before being released on bail. He does not face any allegations of sexual misconduct.

Starmer fired Mandelson in September 2025 after evidence emerged that the ambassador had maintained a friendship with Epstein after the financier’s 2008 conviction for sex offenses involving a minor. But recent revelations have stirred up Labour lawmakers’ anger at Starmer’s poor judgment in appointing Mandelson to the Washington job in the first place.

On Friday Starmer acknowledged the result was disappointing, but vowed to “keep on fighting.”

“Incumbent governments quite often get results like that mid-term, but I do understand that voters are frustrated,” he said. “They’re impatient for change.”