The Department of Justice is investigating how California and Maine house transgender women in prisons, signaling potential federal intervention in state policies. The probes follow President Trump's executive order mandating that male inmates remain in men's facilities. Maine prisons lost federal grant funding last year after the state allowed transgender inmates to be housed according to their gender identity, a policy California adopted in 2015. Federal officials allege California's system creates risks of sexual assault and intimidation, while Maine faces accusations of housing a biological male with female inmates despite complaints. California's corrections department insists its zero-tolerance policy on sexual assault complies with federal law, calling the DOJ's approach politically motivated. The investigations could reshape prison management contracts and government funding allocations for correctional facilities.