What does Donald Trump's executive order on transgender athletes do and what is its potential impact?

Trump's executive order directs agencies to investigate and potentially withhold federal funding from schools allowing transgender women and girls to compete on female sports teams. It relies on a new interpretation of Title IX that classifies such participation as sex discrimination. While the order has received both praise from conservatives as protection for cisgender females and condemnation from LGBTQ advocates as discriminatory, its real-world impact may be limited. More than half of U.S. states already ban transgender students from competing in sports aligned with their gender identity, and demographic studies show extremely few transgender athletes participate in women's sports nationwide.