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US President Donald Trump has signed a new executive order aimed at tightening regulations in college sports, particularly in response to recent changes allowing student-athletes to earn money.
The order directs the National Collegiate Athletic Association (NCAA) to impose limits on how long athletes can compete, stating that they should be eligible for “no more than a five-year period.” It also introduces new transfer rules, permitting student-athletes to switch schools once without being required to sit out a season before graduating.
The measures are set to take effect on August 1, with institutions that fail to comply potentially facing the loss of federal funding. Trump argued that the current system has created financial pressures on universities, with inconsistent regulations causing instability.
“The loosening of consistent rules or limits concerning eligibility, transfers, and pay-for-play schemes has created an out-of-control financial arms race… that is driving universities into debt,” he said.
The executive order also calls on governing bodies to crack down on what it describes as “improper” financial arrangements and urges Congress to introduce broader legislation to address the issue.
This move follows a previous order signed in July, which sought to restrict certain third-party payments to athletes, particularly in high-revenue sports like football and men’s basketball, in an effort to protect funding for women’s and less profitable sports.
Trump has repeatedly expressed concerns about the rising value of name, image, and likeness (NIL) deals, warning that they could strain college athletic programs and lead to cuts in sports that have historically contributed to US Olympic success.
The executive order comes in the wake of a 2021 Supreme Court ruling that allowed college athletes to receive compensation, ending the NCAA’s long-standing ban on payments tied to their name, image, and likeness.
