Trump Signs Executive Order Reshaping College Sports With New Limits on Athlete Eligibility and Transfers

 

US President Donald Trump has signed a sweeping new executive order aimed at tightening regulations across college sports, escalating his push to rein in the rapidly evolving landscape created by name, image, and likeness (NIL) payments. The order directs the NCAA to impose a strict cap on athlete eligibility, limiting participation to no more than five years, while also introducing a new transfer rule that allows student‑athletes to switch schools once without sitting out a season before graduation. The measures will take effect on August 1, and universities that fail to comply could face the loss of federal funding.

Trump argued that the current system has placed growing financial strain on universities, claiming that inconsistent rules around eligibility, transfers, and NIL deals have triggered what he described as an “out‑of‑control financial arms race” pushing athletic departments into debt. The order also calls for governing bodies to crack down on what it labels “improper” financial arrangements and urges Congress to consider broader legislation to stabilize the college sports economy.

The move follows a previous order issued in July that sought to restrict certain third‑party payments to athletes in high‑revenue sports such as football and men’s basketball, with the stated goal of protecting funding for women’s programs and Olympic‑pathway sports. Trump has repeatedly raised concerns about the rapid growth of NIL deals, warning that escalating compensation demands are placing pressure on athletic budgets and could lead to cuts in sports that have historically contributed to the United States’ Olympic success.

These new regulations come in the aftermath of the 2021 Supreme Court ruling that allowed college athletes to receive compensation tied to their name, image, and likeness, ending the NCAA’s long‑standing ban on such payments and reshaping the financial structure of college athletics.