In early July, the University of Pennsylvania said it had reached a settlement with the U.S. Department of Education, resolving a federal investigation into Title IX violations based on transgender athlete participation in women's sports.
The unprecedented agreement requires Penn to exclude transgender women from women's sports. The legal significance of the settlement is magnified by the U.S. Supreme Court's recent decision to hear several cases challenging the constitutionality of state-level bans on transgender girls and women competing in female sports divisions, setting the stage for a potentially landmark national ruling on the intersection of Title IX, gender identity, and athletic eligibility.
University of Pennsylvania Reaches Title IX Settlement Over Transgender Athletes in Women's Sports
In a resolution to an investigation initiated by the Department of Education's Office of Civil Rights (OCR) in February 2025, Penn agreed to ban transgender women from women's sports in alignment with the Trump administration's interpretation of Title IX, which prevents sex-based discrimination in any education program or activity receiving federal dollars. The university also committed to revise athletic records, adopt biology-based definitions of sex, and issue formal apologies to cisgender athletes affected by transgender athletes' participation.
The investigation was initially prompted by transgender swimmer Lia Thomas's participation in the university's women's teams in 2021 and 2022. Thomas was the first openly transgender athlete to win an NCAA Division I national championship. Her critics, which included some of her peer athletes and teammates, alleged that her successes were due to her transgender status, which purportedly gave her an advantage over her cisgender counterparts, despite her meeting the then-criteria set by the NCAA for hormone therapy.
OCR found that Penn violated Title IX by allowing Thomas to compete in a female athletic program and use female-only intimate facilities. "While Penn's policies during the 2021-2022 swim season were in accordance with NCAA eligibility rules at the time, we acknowledge that some student-athletes were disadvantaged by these rules," said Penn's president, J. Larry Jameson. "We recognize this and will apologize to those who experienced a competitive disadvantage or experienced anxiety because of the policies in effect at the time."
The key terms of the settlement include:
- Adopting Biology-Based Definitions of Sex: In alignment with executive orders ("Defending Women from Gender Ideology Extremism" and "Keeping Men Out of Women's Sports") issued by President Trump, Penn will adopt biology-based definitions of sex for sports participation, thus prohibiting transgender women from competing in women's sports.
- Adjusting Records: Penn has removed three women's swimming records originally held by Thomas and reinstated the previous record holders. A note now clarifies that "Competing under eligibility rules in effect at the time, Lia Thomas set program records in the 100, 200 and 500 freestyle during the 2021-22 season." Thomas, however, will retain her NCAA titles, which have not been revoked.
- Issuing Personal Letters of Apology: The university has issued letters apologizing to cisgender female swimmers who experienced a "competitive disadvantage" by swimming against Thomas.
- Making Public Statements: Penn has issued public statements to its community, to affirm it will comply with Title IX moving forward, specifying that it will adopt biology-based definitions of sex and rescind any guidance that violated Title IX.
By entering into this agreement with the federal government, Penn will unlock $175 million in federal funds and contracts that were frozen earlier this year by the Trump administration. The administration had previously stated that it froze those funds, at least in part, to compel Penn to comply with its demands on its athletics programs.
It's likely that this settlement may serve as a blueprint for other universities navigating conflicts between evolving federal mandates, NCAA regulations, and state laws.
If your organization has questions about Penn's decision, please contact the authors of this article or any attorney in Venable's Labor and Employment Group.