I deliberately didn’t read the article. What type of school are we talking about? Is it a boys’s school or a girls’ school? If it’s a girls’ school, is it a Bais Yaakov or a (completely) private school? If it’s a boys’ school, is Chinuch Atzmai or a regular chareidi school (which would mean it’s a private school)?
I have no idea (Have to admit stopping after “children not accepted at school”. Old news). That is why I laid out the possibilities:
1: Private, no government funding – let them do what they want, not the government’s business
2: Chinuch Atzmai or private with government funding – Withhold funding
3: Public – fire the principal and accept the children
4: If all schools in the area are private, bus the children to a public school
(I don’t see why it makes a difference if the school is for boys or girls, but that may be in the funding structure).