UPenn Faces $100 Million Donor Withdrawal Following Former President Magill's Congressional Testimony Backlash

Eyal Yakoby, a University of Pennsylvania student who previously filed a lawsuit against the institution over alleged antisemitism, recently commented on social media regarding an interview that "backfired so much," implicitly referencing the significant fallout from former UPenn President Liz Magill's December 2023 congressional testimony. Magill's remarks, particularly her "context-dependent" answer regarding whether calls for the genocide of Jews violated university policy, ignited a firestorm of criticism, leading to her resignation and substantial financial repercussions for the university.

During a House Committee on Education and the Workforce hearing, Magill, alongside the presidents of Harvard and MIT, faced intense questioning on their institutions' handling of antisemitism. When asked by Representative Elise Stefanik if calls for the genocide of Jews would violate Penn's code of conduct, Magill stated, "It is a context-dependent decision, congresswoman," a response widely perceived as evasive and lacking moral clarity.

The testimony immediately triggered widespread condemnation from politicians, alumni, and Jewish advocacy groups. Ross Stevens, a prominent hedge fund manager and significant donor, announced the withdrawal of a $100 million grant to the Wharton School, citing his dismay at Magill's stance. "I have clear grounds to rescind Penn's $100 million of Stone Ridge shares due to the conduct of President Magill," Stevens stated in an email, adding that the university's "permissive approach" violated anti-harassment policies.

The mounting pressure culminated in Magill's resignation on December 9, 2023, just four days after her testimony. Scott Bok, then chair of Penn's Board of Trustees, also resigned shortly thereafter. The events underscored the intense scrutiny universities faced regarding free speech and antisemitism on campus in the wake of the October 7, 2023, Hamas attacks on Israel.

Eyal Yakoby's own legal action, filed in December 2023, accused UPenn of failing to protect Jewish students and fostering a hostile environment. His lawsuit, along with similar actions against other universities, highlights the ongoing legal and social challenges facing higher education institutions amidst rising concerns over antisemitism. The university has since taken steps, including forming task forces and implementing new policies, to address these issues, earning a "C" grade in the ADL's 2025 Campus Antisemitism Report Card, an improvement from its previous "D."