Indiana School Counselor Awarded $200K After Firing for Opposing Gender Identity Policy
April 20, 2026
The South Madison Community School Corporation in Indiana has agreed to pay close to $200,000 to a counselor who was dismissed after speaking out against a student gender identity policy.
Christianity Today reports that Kathy McCord filed a lawsuit against her Indiana school district after she was terminated for noncompliance with a policy requiring staff to withhold from parents information about children identifying as the opposite sex at school.
The dispute goes back to 2021, when McCord and other staff members were directed to implement a “Gender Support Plan” form for students addressing their preferred gender identity and pronouns.
The policy required educators not only to use a student’s chosen name and pronouns but also to withhold that information from parents if the student requested confidentiality.
In March 2023, the school board voted to terminate McCord over her public criticism of the plan, and shortly afterward, in May 2023, the Alliance Defending Freedom (ADF) filed a lawsuit on her behalf challenging the dismissal.
Court records filed last week in U.S. District Court for the Southern District of Indiana, Indianapolis Division show that both parties reached a settlement agreement and jointly moved to dismiss the case.
According to Christianity Today, the policy at issue has been withdrawn following changes in state law and, under the terms of the agreement, the district will pay $195,000 in legal fees and related costs.
ADF Senior Counsel Vincent Wagner, responding to the settlement, said, “No American should be fired for expressing her beliefs, especially not an educator speaking in her personal capacity, on her own time, and out of concern for her students.”
Wagner added, “Kathy knows that kids do best when schools and parents work together. But South Madison left parents in the dark. It’s regrettable that South Madison made Kathy endure three years of litigation to get to this point, but we are pleased with this result for Kathy.”
Photo: top, Credit: Alliance Defending Freedom