The University of Pennsylvania (UPenn) has agreed to enforce a ban on transgender athletes participating in women's sports following a federal civil rights investigation initiated by the case of swimmer Lia Thomas. The US Department of Education announced this agreement, emphasizing that the Ivy League institution would issue an apology and restore titles and records to female athletes that were previously held by male athletes.

Under the new policy, UPenn will update its records from the 2021–22 season to reflect current eligibility guidelines, though it remains unclear whether Thomas' records will be erased. Lia Thomas made history in March 2022 by becoming the first transgender athlete to win a US national college title.

This development is part of a broader crackdown on transgender athletes in sports, a policy initiated during President Donald Trump's administration. Shortly after taking office, Trump signed an executive order aimed at preventing transgender women from competing in female sports categories. UPenn was one of several institutions investigated for potential violations of Title IX, a 1972 civil rights law prohibiting sex-based discrimination in federally funded education programs.

In response to the investigation, the Trump administration temporarily withheld $175 million in federal funding from UPenn. The recent agreement mandates that the university adhere to "biology-based definitions" of male and female, in line with Trump's executive orders.

US Education Secretary Linda McMahon stated, "Today's resolution agreement with UPenn is yet another example of the Trump effect in action. Thanks to the leadership of President Trump, UPenn has agreed both to apologize for its past Title IX violations and to ensure that women's sports are protected at the University for future generations of female athletes."

UPenn acknowledged that its previous policies, which aligned with NCAA eligibility criteria, disadvantaged some student-athletes. The university issued a statement on its website, saying, "We recognize this and will apologize to those who experienced a competitive disadvantage or anxiety because of the policies in effect at the time."

Lia Thomas, who competed on UPenn's men's swim team for three seasons before undergoing hormone replacement therapy in spring 2019, joined the women's team in 2022. She set multiple school records and posted the fastest times among female swimmers. Thomas has since graduated and no longer competes for the university.

In 2022, Thomas addressed misconceptions about her transition, stating, "People will say, 'Oh, she just transitioned so she would have an advantage, so she could win.' I transitioned to be happy, to be true to myself." Despite her achievements, Thomas faced legal challenges in her bid to compete in elite women's sports, with the Court of Arbitration for Sport in Switzerland rejecting her case.

This decision follows a 2020 vote by World Aquatics to ban transgender women from elite events if they have undergone any part of male puberty. The Human Rights Campaign criticized UPenn's agreement, with spokesman Brandon Wolf stating, "The American people deserve a White House that is laser focused on making sure every student thrives. Instead, this administration is obsessed with making young people's lives harder and scapegoating transgender people so they can attack independent institutions."