Donald Trump’s government is set to recognise only two genders, male and female.
The move will come as part of a swathe of executive orders the incoming president will sign on his first day back in the White House.
It is one of two branded as “common sense” orders and will end all federal funding or recognition of gender identities.
The definition of male and female will be based on whether people are born with eggs or sperm, rather than on their chromosomes.
Under the order, prisons and settings such as shelters for migrants and rape victims would be segregated by sex, based on this criteria.
Officials also said the order would impact federal documents including passports.
The order would also block requirements at government facilities and at workplaces that transgender people be referred to using the pronouns that align with their gender.
Mr Trump’s team says those requirements violate the First Amendment’s freedom of speech and religion.
The second “common sense” order targets diversity, equity and inclusion (DEI) initiatives, and ends their federal funding.
As part of this, officials said there would be a monthly meeting of relevant agencies to assess any DEI programs and whether they should be shut down.
Speaking in a rally on Sunday ahead of his inauguration, Mr Trump also said that he would stop the participation of trans athletes in women’s sports.
The move will undo parts of one order President Joe Biden signed on his first day in office four years ago.
Throughout his campaign, Mr Trump has been vocal in his opposition to increased support and rights for transgender and nonbinary people.
The order does not appear to issue a nationwide mandate on which bathrooms transgender people can use or which sports competitions they can join, though many states have passed laws on those areas.
Civil rights groups were already preparing to challenge Mr Trump’s restrictions in court before he set foot in the Oval Office.
“We are going to persevere, we’re going to continue in our work and we’re going to continue to protect trans rights throughout the country,” said Ash Orr, a spokesperson for Advocates for Trans Equality last week, anticipating such an order.