Trump Signs Executive Order Limiting Third-Party Payments College Athletes

President Donald Trump signed an executive order aiming to regulate college athletics amid the evolving landscape of athlete compensation and name, image, and likeness (NIL) rights. The order prohibits third-party, pay-for-play payments from boosters and donors to athletes, while allowing fair-market NIL compensation such as brand endorsements, to curb chaotic bidding wars and financial instability in college sports. It directs federal agencies, including the Labor Department and the National Labor Relations Board, to clarify whether student-athletes should be classified as employees, addressing a major legal and regulatory ambiguity. Trump emphasized preserving college sports as an educational institution rather than professional leagues, with the goal of safeguarding scholarships and expanding opportunities for women’s and non-revenue sports. The move has drawn support from figures like basketball coach John Calipari, who views it as a step toward meaningful dialogue and protecting young athletes. However, experts anticipate legal challenges regarding antitrust laws and athlete rights, while the NCAA welcomes federal intervention to address structural issues in college sports.