The Trump administration is restoring federal funding to the University of Pennsylvania after the school reached a deal limiting the participation of transgender athletes in sports, according to a Department of Education official.

About $175 million in funds were frozen in March in a clash over university policies permitting transgender competitors in women’s sports, an issue that has galvanized President Donald Trump and his supporters. Penn was sued by three female swimmers who alleged that they were discriminated against when a transgender teammate, Lia Thomas, beat them in a 2022 competition.