I was made a manager then the head office sent us a new manager that we did not have room or need for so I was demoted then they cut my pay. My store then got a new district manager who I had previously had an altercation with. My manager gave me 40 hours for the week the district manager then changed the schedule and gave me only 26 and she will not allow me to transfer out of her area. Can she leagally do this?

Yes, she can. It may or may not be unfair but barring a bona fide contract that say otherwise, as long as you were given notice of the pay cut before you worked any hours at the lower rate, it is 100% legal.