President Trump signs executive order banning ‘third-party, pay-for-play’ deals for college athletes

Trump answers reporter questions on Epstein files

President Donald Trump answers reporter questions on Epstein files, Canadian tariffs and the federal reserve before his trip to Scotland.

WASHINGTON - President Donald Trump signed a sweeping executive order Thursday that aims to reshape the way college athletes receive financial compensation, barring so-called "third-party, pay-for-play" payments to student-athletes while allowing legitimate name, image and likeness (NIL) deals to continue.

What we know:

The order—titled "Saving College Sports," targets a rapidly shifting landscape in collegiate athletics, where a patchwork of state laws and a series of legal decisions have weakened traditional NCAA rules. The White House said the move is designed to address growing concerns over so-called "bidding wars" for top recruits and to protect the financial and structural stability of college sports programs.

Key provisions include:

• Prohibiting ’Pay-for-Play: Universities and athletes are barred from accepting payments from third parties intended as recruiting or performance incentives, even if disguised as endorsements.
• Preserving Genuine NIL Deals: Athletes may still profit from their name, image, and likeness through legitimate, fair-market-value endorsement contracts.
• Protecting Non-Revenue and Women’s Sports: The order calls for revenue sharing and regulatory frameworks to make sure smaller programs and women’s sports are not negatively impacted by the rise of higher grossing programs.
• Clarifying Student-Athlete Status: Federal agencies i,ncluding the Departments of Labor and Education, are tasked with issuing guidance to preserve the educational status of student-athletes, rather than reclassifying them as employees.

Big picture view:

The executive action follows a period of upheaval in college sports. Since states began passing their own NIL laws in 2021, following major court victories for athletes, the NCAA’s authority over athlete compensation has eroded. Boosters and school supporters at top athletic programs have taken advantage of relaxed regulations to offer high-value contracts, often blurring the line between legitimate endorsements and direct pay-for-play arrangements.

The NCAA and its power conferences formally agreed to an antitrust settlement in June  that will allow schools to distribute up to $20.5 million directly to their athletes in the coming academic year with the payments also being designated as endorsement contracts on paper, but likely will serve as de facto salaries.

Administration officials argue that this unregulated growth threatens the educational and developmental mission of college athletics—and the survival of smaller sports.

What they're saying:

Steve Berman, one of the co-lead plaintiff attorneys in the antitrust settlement, criticized Trump for trying to intervene.

"Plain and simple, college athletes don’t need Trump’s help, and he shouldn’t be aiding the NCAA at the expense of athletes," Berman said. "... As a result of our case, college athletes are now free to make their own deals. For Trump to want to put his foot on their deal-making abilities is unwarranted and flouts his own philosophy on the supposed ’art of the deal.’"

NCAA president Charlie Baker said the association still will need help from federal lawmakers to create competitive balance in college sports. Baker and other college sports leaders have requested Congress to provide them with an antitrust exemption so they can enforce rules, many of which would limit athlete earning power.

"The Association appreciates the Trump Administration’s focus on the life-changing opportunities college sports provides millions of young people and we look forward to working with student-athletes, a bipartisan coalition in Congress and the Trump Administration to enhance college sports for years to come."

What's next:

Much remains unclear about how the new order will be enforced. The president has directed Cabinet agencies to develop regulatory plans within 30 days and utilize all available tools—including federal funding decisions—to ensure compliance.

The executive order comes amid faint prospects for federal legislation in Congress, as lawmakers remain divided on whether and how to intervene in the NIL debate.