Trump Admin Pauses $175M to University of Pennsylvania

The Trump administration is pausing $175 million in federal funding to the University of Pennsylvania, apparently because the college allowed a transgender woman to compete in women’s sports three years ago.

The funding pause, announced Wednesday via a White House social media post, is not related to any investigation. Instead, the Departments of Defense and Health and Human Services stopped the $175 million as part of an “immediate proactive action to review discretionary funding streams,” a senior White House official said in a statement. The legality of the move isn’t clear, and officials didn’t specify what the paused funding was intended to be used for.

The official did note that the university “infamously permitted a male to compete on its women’s swimming team.”

The University of Pennsylvania became a target for Republicans and conservatives after swimmer Lia Thomas, who initially competed on the men’s swimming team, transitioned and then swam for the women’s team during the 2021–22 season—in compliance with the NCAA policies at the time. Thomas went on to win the NCAA championship in the 500-yard freestyle, although her time was not an NCAA record.

President Donald Trump campaigned in part on getting “men out of women’s sports,” and signed an executive order in early February specifically banning transgender women from competing in women’s sports. The order is part of a broader rollback of trans rights, and Trump has gone so far as to deny the existence of trans and gender-nonconforming people, declaring that there are only two sexes, male and female.

Shortly after the order was signed, the Education Department’s Office for Civil Rights opened a Title IX investigation into transgender athletes participating in college sports at the University of Pennsylvania. The Education Department also urged the NCAA to rescind all “records, titles, awards, and recognitions” given to trans women and girls. Since Trump’s order, the NCAA and Penn have acceded and revised policies to prevent trans women from competing in women’s sports.

A senior Trump administration official told Fox Business that the pause was a “proactive punishment” and that the university is at risk of losing all federal funding as part of the ongoing Title IX investigation.

“This is just a taste of what could be coming down the pipe for Penn,” the official told Fox Business, which first reported on the pause.

A University of Pennsylvania spokesperson said Wednesday afternoon that the institution had yet to receive any official notification or any details about the pause. The spokesperson noted that Penn follows NCAA and Ivy League policies regarding student participation on athletic teams.

“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 spokesperson said.

Columbia, Penn and other universities are facing great uncertainty when it comes to federal funding as Trump looks to cut spending and crack down on programs that don’t align with his priorities. Penn recently paused hiring and took other steps to curb spending.

Pausing Penn’s funding without any formal investigation and outside the typical processes for such a punishment is just the latest salvo in Trump’s attacks on wealthy universities. Earlier this month, the administration cut $400 million in grants and contracts from Columbia University, accusing the institution of “continued inaction in the face of persistent harassment of Jewish students”—an unprecedented move that alarmed experts and higher education advocates. Trump officials then ratcheted up the pressure by demanding sweeping changes at Columbia as a precondition to formal negotiations. Columbia has until Thursday, March 20, to respond.

Jon Fansmith, senior vice president of government relations at the American Council on Education, said the administration is punishing conduct they disagree with, adding that he found the Penn pause “more troubling” because of the lack of explanation or rationale.

“It’s one thing to say we think there’s a big problem,” he said. “It’s a much bigger deal to say we’re arbitrarily suspending funding without a reason … You should at least have a reason for taking serious action.”

He noted that the current regulations governing Title IX don’t specifically bar transgender students from participating in women’s sports, and that Penn is in compliance with the policies. So he’s not sure what Penn could offer the Trump administration to restore the funding.

Blake Emerson, a professor of law and political science at the University of California, Los Angeles, said the funding pause is illegal since the administration didn’t follow the processes under Title IX to pull funding. That process includes a formal hearing and a report to Congress.

“There is no freestanding executive power to cut off money without legal authority,” he said. “It’s another instance in this pattern of the Trump administration not just aggressively using the law to target political opponents and universities, but flouting the law and not even showing casual regard for the legal process.”

Emerson noted that executive orders aren’t laws, and that if the Trump administration wants to change the existing interpretations of Title IX, it has to go through the rule-making process.

He urged Penn and Columbia to fight the cuts, as he doesn’t think “acquiescence is likely to appease” the Trump administration.

“Universities have a strong case to make that the funds being cut off are really necessary to provide essential public services the universities provide,” he said. “We’re losing scientific research because of these illegal steps, and universities are failing to make the case for their own programs when the actions being taken against them are clearly illegal. To my mind, acquiescence is a major blunder.”

Meanwhile, conservative activists who have railed against trans athletes praised the move.

Riley Gaines, who competed against Thomas, called the timing of the announcement “serendipitous” in a social media post. Three years ago Wednesday, she tied with Thomas for fifth place in the 200-yard freestyle at the 2022 NCAA championships.

Beth Parlato, senior legal adviser for the Independent Women’s Law Center, said in a statement that the message from the funding pause was clear: comply or suffer the consequences.

“President Trump means business and he’s not going to tolerate any school willfully violating the law,” Parlato said. “It is so encouraging to see an administration actually follow through with promises made to the American people, and I’m looking forward to watching each and every school that fails to protect women and girls be held accountable.”