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The decision was a win for the Trump administration, which has been stymied by a series of other court rulings in recent days. The judge said the plaintiffs lacked standing.
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Last fall, a federal judge in New Hampshire ruled that the two students can try out for and play on girls school sports teams while the teens challenge the state ban.
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Federal judges have blocked President Trump's executive orders related to the Department of Government Efficiency and ending birthright citizenship.
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The order was temporarily blocked after Massachusetts and 21 other states filed a lawsuit in federal court opposing the funding cuts.
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President Donald Trump's plan to downsize the federal workforce remains on hold after a courtroom hearing on Monday afternoon.
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