President Donald J. Trump signed a new executive order aimed at stabilizing the rapidly changing landscape of collegiate athletics in the United States.
Since the Supreme Court’s 2021 antitrust ruling and subsequent changes to NCAA regulations, the door was opened for college athletes to earn money from their name, image, and likeness (NIL), a move that has since morphed into high-stakes donor-driven bidding wars and the rapid escalation of athlete pay. Not only does the order look at putting federal regulations on the athlete compensation, the order outlines specific mandates designed to strengthen non-revenue sports:
- Departments with >$125M in Athletics Revenue: Required to increase non-revenue sport scholarships and provide maximum roster spots permitted.
- Departments with $50M–$125M: Must at least maintain prior levels of non-revenue scholarships and maximize available roster spots.
- Smaller Departments (<$50M): Prohibited from disproportionately reducing scholarships or roster spots for lower-revenue sports.
The administration frames this as essential to preserving athletic diversity, educational opportunities, and U.S. Olympic dominance, citing that 65% of the 2024 U.S. Olympic Team were former NCAA athletes, and 75% had college sports backgrounds.
Another notable provision calls for eliminating third-party, pay-for-play payments that function primarily as recruiting inducements rather than genuine market-value endorsements. The policy distinguishes these from true NIL activities, which involve fair market compensation for legitimate endorsements and services, not direct payments for athletic participation.
The order instructs the Secretary of Education, Attorney General, and other agencies to develop regulatory and legal strategies to bolster college sports, including:
- Using federal funding and Title IX enforcement to protect non-revenue and women’s sports.
- Reviewing legal guidelines and litigation positions to defend the long-term viability of athletic scholarships.
- Consulting with the U.S. Olympic Committee to ensure sustained international athletic success.
Many athletic directors and conference commissioners—especially from major conferences like the SEC and ACC—have publicly supported the order’s intent to prevent student-athletes from being classified as employees and to avoid unionization, which they argue would make it impossible to maintain the same number and diversity of teams.
Attorneys representing athletes and collectives, as well as some legal scholars, have criticized the order for favoring university and NCAA interests over expanding athlete rights and compensation.
Some legal experts and administrators note that only congressional action can override the patchwork of state NIL laws, with the NCAA reiterating its call for a national legislative solution to standardize rules for all institutions.
