The Trump administration will rescind guidance enacted by his predecessor in favour of transgender students, the White House has said.
The Obama-era rule directed public schools to allow transgender pupils to use toilets of their gender identity.
But critics said that guidance was government overreach which threatened other students' privacy and safety.
White House spokesman Sean Spicer said Mr Trump firmly believes "this is a states' rights issue".
"I would expect further guidance to come out on that today," he told a news conference.
Last May, Mr Obama's justice and education departments instructed public schools to allow transgender students to use whichever bathroom corresponded to their gender identity.
The directive sparked backlash across the country, prompting legal challenges from 13 states and a Texas federal judge's preliminary injunction blocking the department's position in August.
Critics say forcing students to use toilets or changing rooms consistent with the gender listed on their birth certificate is a matter of public safety.
During his presidential campaign, Mr Trump said transgender students should be allowed to use whichever bathroom "they feel is appropriate".
But he later reversed his stance after facing Republican criticism.