The University of Pennsylvania is facing significant financial implications as the federal government halts $175 million in funding over policies regarding transgender student-athletes, raising concerns about academic freedom and institutional autonomy in higher education.
The White House announced the funding pause Wednesday in a statement that characterized the university's policies as “forcing women to compete with men in sports.” The funding, reportedly from the departments of Defense and Health and Human Services, is being withheld despite no official finding of regulatory violations.
UPenn officials said that they have not received any official notification about the suspension.
“Penn has always followed NCAA and Ivy League policies regarding student participation on athletic teams,” said a UPenn spokeswoman. “We have been in the past, and remain today, in full compliance with the regulations that apply to not only Penn, but all of our NCAA and Ivy League peer institutions."
The action follows last month's executive order prohibiting transgender women and girls from competing in female sports at educational institutions receiving federal funding. The order stated it is federal policy “to rescind all funds from educational programs that deprive women and girls of fair athletic opportunities.”
The University of Pennsylvania gained national attention during the 2021-2022 academic year when Lia Thomas, a transgender student-athlete, competed on the women's swim team and became the first transgender woman to win an NCAA swimming championship.
Last month, three former Penn swimmers filed a lawsuit against the University of Pennsylvania, Harvard University, the Ivy League, and the NCAA, alleging Title IX violations. Title IX is a civil rights law preventing sex-based discrimination in education programs receiving federal funding.
The current action against UPenn is separate from a formal Title IX investigation launched by the Education Department last month, according to a senior White House official.
This funding pause represents a significant shift in how federal policy intersects with institutional governance in higher education. Educational policy experts note that withholding funds without a formal finding of regulatory violations raises questions about due process for institutions.
The funding pause could impact various research initiatives and student support programs at UPenn, potentially affecting areas unrelated to athletics.
This action comes amid growing legal challenges to policies affecting transgender students. In New Hampshire, a federal judge recently allowed two transgender students to expand their lawsuit against a state law prohibiting transgender girls from playing on female sports teams to include challenges to the federal executive order.
Legal advocates express concern about the broader implications. Higher education institutions nationwide are closely monitoring this situation as it could establish precedent for how federal funding might be leveraged in relation to transgender inclusion policies. The case highlights the complex intersection of educational access, civil rights, competitive fairness, and institutional governance.
University administrators across the country now face difficult questions about balancing compliance with federal directives against established institutional values of inclusion and equity, all while ensuring continued access to crucial federal funding for research and
Diverse will continue to follow this developing story.
