June 8, 2026 | Katie Sluman, J.D.
As college sports navigate the complexities of the NIL era, the federal government is taking unprecedented steps to bring greater structure, consistency and oversight to collegiate athletics.
It’s no secret that collegiate sports have entered an era of significant change and uncertainty. Since California passed the first state name, image and likeness (“NIL”) law in 2019, student-athlete compensation regulations have expanded in scope and complexity. Now, more than 30 states have passed NIL-related laws, creating significant instability throughout collegiate athletics and prompting intervention at the federal level.
On April 3, 2026, President Trump issued an Executive Order titled “Urgent National Action To Save College Sports.” The Executive Order seeks to establish a national framework for the oversight of college sports by directing federal agencies to tie universities’ eligibility for federal grants and contracts to compliance with standardized rules governing NIL compensation, athlete eligibility, transfers and revenue sharing.
The Executive Order’s stated goal is to preserve the long-term stability of collegiate athletics, particularly women’s and Olympic sports, which are increasingly threatened by the growing financial pressures associated with universities’ football and basketball programs. According to the Executive Order, universities have become engaged in what the Executive Order describes as a “financial arms race” as they attempt to attract top athletes, remain competitive with rival institutions, keep pace with NIL and revenue sharing developments and maintain the prestige, donations, media revenue and enrollment benefits implicitly tied to athletic success. To address these concerns, the Executive Order authorizes federal agencies to evaluate whether institutions are complying with applicable intercollegiate athletic governing body rules and warns that schools engaging in “improper financial activities,” including fraudulent NIL arrangements or impermissible pay-for-play schemes, could face consequences affecting their access to federal funding.
The Executive Order further proposes reforms intended to create greater structure and consistency within college athletics, including age-based eligibility limitations, a five-year participation cap (subject to exceptions), restrictions on former professional athletes returning to college sports and transfer rules permitting one unrestricted transfer along with an additional transfer following completion of a four-year degree. In addition, the Executive Order emphasizes that any implementation of revenue sharing between universities and student-athletes should preserve or expand scholarships and athletic opportunities in women’s and Olympic sports, reflecting broader concerns that the increasing financial demands of major revenue-generating sports, such as football and basketball, could otherwise divert resources away from “non-revenue athletic programs” such as track and field, gymnastics and wrestling.
In many ways, the Executive Order represents one of the most significant attempts by the federal government to influence the structure and regulation of collegiate athletics in today’s NIL era. By tying compliance to federal funding, the Administration seeks to create greater consistency surrounding athlete compensation, eligibility, transfers and revenue sharing while also addressing growing concerns regarding the financial sustainability of university athletic programs and the preservation of women’s and Olympic sports. The Executive Order additionally raises important questions regarding the interaction between federal oversight and state NIL laws, as well as the challenges associated with enforcing a national framework across collegiate athletics. As the collegiate sports landscape continues to evolve, additional laws and regulations are likely to emerge.
For additional information regarding the Executive Order and its potential impact on student-athletes, families, universities and athletic programs, please contact Handler Law to discuss how these developments may affect you or your organization.
Learn more about the executive order: https://www.whitehouse.gov/presidential-actions/2026/04/urgent-national-action-to-save-college-sports/