White House pauses $175 million to University of Pennsylvania over Lia Thomas

The administration paused $175 million in HHS and DOD funding to the University of Pennsylvania — roughly a fifth of Penn's annual federal funding — explicitly as punishment for having allowed transgender swimmer Lia Thomas to compete on the women's team in 2021-22. Penn said the freeze jeopardized lifesaving research. On July 1, 2025, the administration released the funds after Penn signed an agreement with the Education Department barring transgender women from women's teams, reassigning Thomas's program records, and sending apology letters to affected swimmers. (See also sections 5, 13.)