The woman states in the suit that she was humiliated and suffered from depression after she was outed, which led to her losing her scholarship to the school.
While some aspects of the law remain, LGBTQ+ rights groups representing the families that sued over it have praised the ruling.
But the Texas Supreme Court, in allowing the probes to continue, questioned the authority of the governor to order them.
The president warned that equal employment and even contraception could also be on the chopping block.
The bill had died in committee last week, but it's been given new life thanks to a procedural motion rarely used.
Opponents of the law have asked a judge to block it, but that hasn't happened — and doctors and patients are deeply concerned.
