White House Expected to Pause $175 Million for Penn Over Transgender Policy

The Trump administration announced on Wednesday that it would suspend approximately $175 million in federal funding to the University of Pennsylvania due to its approach towards transgender athletes. This decision, publicized through a White House social media account, signifies the government’s stance on transgender individuals’ involvement in public life and sets the stage for a confrontation with prestigious academic institutions.

According to the White House’s rapid response account on X, the suspension was triggered by Penn’s “policies compelling women to compete against men in sports.” A source familiar with the matter confirmed the funding halt, citing Penn’s support of Lia Thomas, a transgender woman, as a member of the women’s swim team.

In response, Penn stated that while they are aware of reports regarding the funding suspension, they have not received official notification or details from the government. The university emphasized its compliance with regulations applicable to both Penn and its N.C.A.A. and Ivy League counterparts.

Penn, which is President Trump’s alma mater, is the second Ivy League institution in recent weeks to face such targeted actions by the administration. The move follows the administration’s decision to pause around $400 million in contracts and grants involving Columbia University earlier this month.

Numerous other schools are currently under federal scrutiny and feeling the financial squeeze as the administration aims to reduce federal spending across the board.

The administration’s action against Penn comes three years after Lia Thomas, a transgender athlete, claimed a National Collegiate Athletic Association title in the 500-yard freestyle event. Prior to her victory, several members of Penn’s swim team raised concerns about unfair competition due to her participation.

The controversy surrounding Lia Thomas persisted, fueled in part by President Trump’s vocal opposition to transgender participation in sports. In February, after three former Penn swimmers sued the university over Thomas’s involvement, Trump issued an executive order targeting educational programs that allegedly disadvantage women and girls in athletics.

The Department of Education subsequently launched an investigation into Penn’s compliance with Title IX, with claims from swimmers highlighting issues of competing against male athletes and sharing facilities. These developments have put Penn, along with other universities, on edge as they face potential cuts in federal funding.

Following Trump’s executive order, the N.C.A.A. prohibited transgender women from participating in women’s events, adding to the challenges faced by universities like Penn. The university, already bracing for financial difficulties, warned of potential losses in NIH funding that could amount to hundreds of millions annually.

The looming funding cuts have prompted Penn to implement hiring freezes and budget reviews, signaling a potentially severe financial crisis. While the university has a substantial endowment, replacing lost federal funding presents a complex challenge.

Penn officials acknowledge the gravity of the situation, comparing it to past challenges such as the 2008 financial crisis and the Covid pandemic. The administration’s recent funding cuts are seen as proactive measures to review discretionary funding streams, hinting at further reductions in the future.

While specific programs at Penn facing funding cuts have not been detailed, any reductions in medical science funding would have significant ramifications for the university’s research and academic endeavors.

Similar financial struggles are being felt across universities, with Johns Hopkins University and Columbia University already taking drastic measures in response to funding cuts from federal agencies.

As universities grapple with the impact of reduced federal funding, the future of academic research and programs remains uncertain. Institutions like Penn, known for their medical and scientific contributions, are facing unprecedented challenges that may require innovative solutions to sustain their operations.