PK-12 district-level administrators have been asked to navigate an increasingly complex policy landscape concerning gender-diversity reforms. We apply sensemaking theory to examine administrators' understanding of legal and policy protections for trans and gender diverse (TGD) students. Using 36 interviews with administrators and policy consultants, we examine whether PK-12 district administrators (a) know about existing legal and policy protections, (b) tie policies to administrative actions, (c) build capacity for structural gender reforms, and (d) proactively learn about gender diversity. We use these categories to delineate among resistant, emergent, and gender-inclusive leadership approaches along the Gender-Inclusivity Leadership Spectrum. Our findings suggest PK-12 leaders would benefit from additional implementation strategies and education concerning gender diversity, even in states with protective legislative mandates for TGD people in schools.