President Donald Trump signed an executive order Friday aimed at reshaping college athletics, tightening rules around eligibility, transfers, and compensation in what he described as an “out-of-control” system in the name, image and likeness (NIL) era.
The order directs the National Collegiate Athletic Association to expand its oversight and implement new national standards. Among the key provisions are a five-year cap on student-athlete eligibility and a limit of one transfer during an undergraduate career without requiring a waiting period. The move represents a significant shift in how college athletes navigate both playing time and academic timelines.
The administration also took aim at NIL deals, which have transformed the financial landscape of college sports since their introduction in 2021. Trump’s order calls for measures to prevent what it labels “fraudulent NIL schemes,” where athletes are allegedly paid above fair market value. It also proposes the creation of a national registry of student-athletes to increase transparency and oversight.
Colleges and universities that fail to comply with the new guidelines could face serious consequences, including the potential loss of federal funding. The enforcement mechanism underscores the administration’s intent to compel widespread adherence to the updated rules.
“The convergence of enormous pressure to win in football and basketball and the loosening, both by litigation and by State legislation, of consistent rules or limits concerning eligibility, transfers, and pay-for-play schemes has created an out-of-control financial arms race in these sports that is driving universities into debt, threatening to siphon resources from other sports, and damaging student-athletes’ educational and graduation opportunities,” the order states.
Trump has repeatedly criticized the current NIL system, calling it a “disaster” during a recent White House roundtable with sports executives and coaches. His remarks reflect a broader push to roll back aspects of the modern compensation structure in favor of a model more closely aligned with traditional scholarship-based athletics.
The current system emerged following a landmark 2021 ruling by the Supreme Court of the United States, which found that the NCAA’s restrictions on education-related benefits violated federal antitrust law. In response, the NCAA adopted its NIL policy, allowing athletes to earn compensation for endorsements and other opportunities.
Further change came with a reported $2.8 million settlement in 2025 that opened the door for direct revenue sharing between players and schools, marking a major departure from the long-standing amateurism model that defined college sports for decades.
“Everybody was happy, and now you got yourself a mess,” Trump said at the White House event, signaling frustration with how the system has evolved. “I just don’t think it’s right that a judge is allowed — that knows nothing — is allowed to destroy college sports and colleges,” the president continued. “And I’d like to see you go back to where you were, enhance it a little bit through some compensation, and let them take you to court because no matter what you do, you’re going to be sued.”
Friday’s action is not Trump’s first attempt to intervene. Last July, he signed a similar order titled “Saving College Sports,” also focused on NIL reform, though it faced questions about enforcement and legal challenges.
The latest move comes just as the NCAA Division I Men's Basketball Tournament reaches its climax, with the Final Four set to tip off at Lucas Oil Stadium in Indianapolis. The tournament has drawn strong viewership, averaging more than 10 million viewers through the second weekend — its largest audience since 1993 — highlighting the immense popularity and financial stakes surrounding college athletics today.
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