Trump Suspends $175M Federal Funding Over Trans Athlete

Trump Suspends $175M Federal Funding Over Trans Athlete \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The Trump administration has suspended $175 million in federal funding for the University of Pennsylvania over transgender athlete Lia Thomas. The funding freeze follows Trump’s executive order banning transgender athletes in women’s sports. Investigations have also begun into other athletic programs nationwide.

Trump Suspends $175M Federal Funding Over Trans Athlete — Quick Looks

• The Trump administration suspended $175 million in federal funds to the University of Pennsylvania.
• The funding freeze follows Trump’s executive order banning transgender athletes from women’s sports.
• The suspended money comes from the Department of Defense and the Department of Health and Human Services.
• The Education Department launched an investigation into Penn’s swimming program.
• The review focuses on Lia Thomas, a transgender swimmer and 2022 NCAA champion.
• Penn states it complies with NCAA and Ivy League athletic policies.
• Trump’s order allows agencies to withhold funds for non-compliance with Title IX, defined by birth sex.
• The NCAA shifted policy to bar trans athletes from women’s sports following Trump’s order.
• Federal investigations are also targeting San Jose State University volleyball and Massachusetts’ athletic association.
• Penn has not yet received official notice regarding the funding suspension.

Deep Look

In a major escalation of the ongoing debate over transgender participation in women’s sports, the Trump administration has suspended approximately $175 million in federal funding to the University of Pennsylvania, the White House confirmed Wednesday. The move follows President Donald Trump’s executive order, signed on February 5, aimed at banning transgender athletes from competing in girls’ and women’s sports.

The funding suspension stems from a separate review of discretionary federal grants allocated to universities, not directly from the Education Department’s recently announced investigation into Penn’s swimming program. The paused funds, according to administration officials, come from the Department of Defense and the Department of Health and Human Services.

Penn officials expressed surprise, stating they had not been formally notified. “It is important to note, however, that Penn has always followed NCAA and Ivy League policies regarding student participation on athletic teams,” spokesperson Ron Ozio said in a statement. “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 funding freeze and investigation center around Lia Thomas, a transgender swimmer who made headlines as the first openly transgender athlete to win a Division I national title in 2022. Thomas competed for Penn’s women’s swim team, following the NCAA’s guidelines at the time. Those policies allowed transgender women to compete if they had undergone at least one year of hormone replacement therapy.

After Thomas’s victory ignited national debate, the NCAA used a sport-by-sport approach to regulate transgender athlete participation, deferring to governing organizations and international federations. However, following Trump’s executive order, the NCAA announced a sweeping policy change that restricts participation in women’s sports to athletes assigned female at birth, ending its case-by-case practice.

Trump’s executive order mandates that federal agencies can withhold funding from educational institutions that fail to comply with his administration’s interpretation of Title IX — which defines “sex” strictly as the gender assigned at birth. This interpretation has fueled controversy, with critics accusing the administration of using funding as leverage to enforce a discriminatory policy.

In addition to Penn, the Department of Education’s Office for Civil Rights has opened investigations into San Jose State University’s volleyball program and the Massachusetts Interscholastic Athletic Association, signaling that the administration’s enforcement efforts are national in scope.

While the University of Pennsylvania has found itself at the center of the controversy, it continues to stand by its adherence to NCAA and Ivy League guidelines. Lia Thomas graduated from Penn in 2022, but the swimmer’s participation and victory remain flashpoints in the broader culture war over transgender athletes’ rights.

The $175 million in suspended funding includes research grants, health initiatives, and military-linked projects that could have far-reaching effects on the university’s research capabilities and student programs.

The Trump administration’s aggressive stance has drawn both sharp criticism and praise. Supporters argue that transgender athletes in women’s sports present fairness concerns, while critics see the action as part of a larger, coordinated effort to roll back transgender rights across multiple sectors, including healthcare, education, and sports.

The move comes amid a wave of additional executive actions from the Trump White House targeting transgender Americans. In recent months, orders have been signed restricting gender-affirming care for minors, banning transgender participation in girls’ and women’s school sports, and adjusting federal guidelines on how schools can teach gender and sex-related topics.

Legal experts suggest that the University of Pennsylvania may soon mount a legal challenge, citing potential violations of federal funding laws and overreach in the administration’s interpretation of Title IX. However, the university has yet to announce any formal legal response.

Beyond Penn, other universities and athletic programs are bracing for similar scrutiny as the Trump administration’s policies take effect. The NCAA’s policy reversal was seen by many as an effort to avoid losing federal support and becoming entangled in legal challenges with the federal government.

As the debate continues to intensify, the Biden administration’s eventual response — should it regain power — could see these executive orders overturned or subjected to legal challenge. For now, the University of Pennsylvania’s loss of federal funds stands as one of the most visible consequences of Trump’s policy shift, highlighting the tension between federal authority, institutional autonomy, and civil rights.

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