The Government has softened some restrictions impacting trans people in community sports.

As part of National's coalition agreement with New Zealand First, there was a threat to withhold public funding if sports bodies didn't keep trans athletes out of grassroots competitions.

Sport and Recreation Minister Chris Bishop will now take a watching brief, after feedback from Sport NZ.

ZB senior political correspondent Barry Soper says this sort of thing will be difficult to enforce a blanket ban on.

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