The Trump administration has withdrawn approximately $175 million in federal funding from the University of Pennsylvania due to its policies on transgender athletes in women’s sports.
The funding was pulled on Wednesday, March 19, 2025, following an executive order enacted in February that prohibited transgender athletes from competing in women’s sports. This move aligns with the Trump administration’s broader strategy to enforce stricter regulations on transgender participation in athletics.
The University of Pennsylvania has been at the center of controversy since allowing Lia Thomas, a transgender athlete, to compete on the women’s swim team back in 2021. This decision drew significant criticism and was a key factor in the recent funding withdrawal.
“We are aware of media reports indicating suspension of $175 million federal funding to Penn, but we have not yet received any formal notice or details,” stated a University of Pennsylvania spokesperson. The university previously said it is compliant.
The Department of Education launched an investigation into UPenn’s compliance with Title IX in February. This investigation parallels the funding freeze, which was orchestrated by the Department of Defense and the Department of Health and Human Services as part of a proactive review of federal funding.
The Trump administration’s actions have elicited mixed reactions. Senior officials within the administration have described this move as a necessary step to enforce Title IX and protect women’s sports.
“This is just a taste of what could be coming down the pipe for Penn,” warned a senior Trump administration official.
A central point of contention is the interpretation of Title IX, with the Trump administration arguing that UPenn’s policies force women to compete against men. However, UPenn maintains that its policies align with the NCAA and Ivy League standards, and that it remains compliant with all applicable regulations.
The NCAA had recently revised its policy in February to restrict participation in women’s sports to athletes designated female at birth, a change that coincided with the Trump administration’s executive order.
The implications of this decision are significant. For UPenn, the financial impact could be substantial, affecting research grants, student aid, and institutional operations. Additionally, this decision sets a precedent for other universities that may face similar scrutiny.
The Department of Health and Human Services also weighed in, noting that this action is part of a broader effort to reassess federal funding to institutions that do not comply with Title IX.
The controversy surrounding Lia Thomas, and the subsequent lawsuit filed by three former UPenn women’s swimmers, has amplified the debate on transgender athletes in women’s sports. Critics of the Trump administration’s move argue that it reflects a broader trend of targeting transgender rights, while supporters view it as essential for maintaining fairness in athletics.
Multi-Agency Involvement
Department of Defense and the Department of Health and Human Services played pivotal roles in the decision to freeze the funding
The decision is backed by a multi-agency effort, highlighting the administration’s comprehensive approach to enforcing its policies. The Department of Defense and the Department of Health and Human Services collaborated to pause the funding, reflecting the administration’s determination to address perceived non-compliance with Title IX regulations.
Fedreal funding withdrawals are distinct from the ongoing educational obligations. The justice department and the education department have been involved in the ongoing federal obligations to make sure everything is in order.
The University of Pennsylvania and other educational institutions will likely need to navigate these regulatory challenges carefully, as the administration continues to scrutinize policies on transgender athletes and other social issues.
