The Trump administration has frozen $175 million in federal funding to the University of Pennsylvania (UPenn) over the school’s policy allowing “transgender” athletes to compete in women’s sports.

The move is part of President Donald Trump’s executive order, “Keeping Men Out of Women’s Sports,” aimed at restricting participation based on biological sex.

UPenn, Trump’s alma mater, where he graduated from the Wharton School of Business in 1968, has been at the center of controversy since transgender swimmer Lia Thomas won an NCAA title in 2022. The administration’s decision follows a broader effort to investigate institutions that support transgender athletes in female divisions, with similar probes launched into San Jose State University and the Massachusetts Interscholastic Athletic Association.

The funding freeze impacts nearly 20% of UPenn’s federal funding from the previous year. While UPenn has yet to release an official response, the move has sparked a national debate over the balance between inclusivity and competitive fairness in women’s sports.

This decision comes amid a larger push from the Department of Education to investigate 45 universities—including Yale, Vanderbilt, and Duke—over alleged civil rights violations related to diversity, equity, and inclusion (DEI) programs. Critics argue the administration is using federal funding as leverage to reshape university policies nationwide.

UPenn and other institutions may be forced to reconsider their policies as the situation unfolds or risk losing significant federal support.