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Trump moves to rein in NIL chaos with sweeping college sports executive order

April 4, 2026

President Donald Trump signed an executive order Thursday aimed at restoring what the White House described as order and stability to college athletics, directing federal agencies to use their oversight authority to enforce rules around player eligibility, transfers, and name, image and likeness compensation.

The order instructs federal agencies to evaluate whether universities that violate key college sports rules should be deemed ineligible for federal grants and contracts — a significant lever that could put billions in federal funding at stake for schools that run afoul of the guidelines.

At the same time, the order calls on the appropriate governing body to update its rules to address what the administration characterized as a financial arms race threatening the long-term viability of college athletic programs. Specific directives include establishing a five-year athletic participation window, setting structured transfer rules to protect academic and athletic continuity, ensuring medical care for student-athletes, and implementing revenue-sharing frameworks that protect women’s and Olympic sports programs.

The order also calls for banning pay-for-play arrangements facilitated by third-party collectives and establishing protections against what it describes as unscrupulous agent conduct.

The General Services Administration and the Department of Education were directed to expand data collection across college athletics to monitor compliance, while the Federal Trade Commission and the Attorney General were instructed to take appropriate enforcement actions.

The White House framed the move as urgent, arguing that a wave of lawsuits in recent years has undermined the rules that make college sports function and created financial pressures that threaten to drain resources from all programs except football and men’s basketball. The administration said the instability is particularly acute for women’s sports and Olympic programs.

College athletics currently supports more than 500,000 student-athletes and distributes nearly $4 billion in scholarships annually, according to the White House. The collegiate system also produced 75 percent of the 2024 U.S. Olympic Team.

Trump called on Congress to pass legislation addressing the issues but said further delay was not an option given the turmoil currently facing universities. The executive order is the second Trump has signed on the subject of college athletics, following an earlier order focused on protecting women’s sports.

By DNU staff

Filed Under: Featured, News

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