They are being penalized.
The Trump administration has temporarily suspended $175 million in federal funding to the University of Pennsylvania (UPenn) due to its inclusion of transgender athletes, particularly following the participation of Lia Thomas, a transgender swimmer who dominated women’s competitions. This action comes as part of an investigation into possible violations of Title IX, which could put UPenn’s entire federal funding package at risk. The school currently receives about $1 billion in federal funds as of 2024.
UPenn is one of three institutions being investigated by the Department of Education after President Trump signed the “Keeping Men Out of Women’s Sports” executive order in February 2025. The other institutions under investigation include San Jose State University and the Massachusetts Interscholastic Athletic Association. The investigations stem from concerns over the inclusion of transgender athletes in women’s sports, which have sparked controversy.
Lia Thomas, a swimmer formerly known as Will Thomas, became a central figure in the debate in 2022 when she transitioned and joined the women’s swimming team at UPenn. Thomas’s success in women’s events, including setting NCAA records and winning the national title in the 500-yard freestyle, ignited strong reactions from critics who argue that transgender women have physical advantages over cisgender women. Riley Gaines, a swimmer who tied with Thomas in the 200-yard freestyle, has emerged as a prominent advocate for restricting transgender athletes from competing in women’s sports.
Gaines celebrated the Trump administration’s decision to suspend funding to UPenn, pointing out that the timing coincided with the three-year anniversary of her tie with Thomas in the NCAA championships. This incident brought the issue of transgender athletes in women’s sports into the national spotlight and has remained a key topic in the ongoing presidential debates ahead of the 2024 election.
The suspension of federal funding for institutions that do not comply with the executive order could extend beyond UPenn. Several state and federal lawmakers are pushing for further cuts to the funding of schools, school boards, and other government entities that fail to follow the new directives regarding transgender athletes in women’s sports.
