A new executive action outlines limits on playing time, transfer rules, and compensation practices as debate over enforcement and legality intensifies.
By yourNEWS Media Newsroom
President Donald Trump has signed a new executive order aimed at restructuring college athletics by imposing limits on player eligibility, restricting transfers, and addressing compensation practices tied to name, image, and likeness agreements.
Donald Trump's 10-page executive order has been obtained by @YahooSports.
Here are some key portions prohibiting "fraudulent NIL" and agencies that pay NIL above "fair market value." Many of these terms are lifted from the House settlement. pic.twitter.com/LRwAaKeQgZ
— Ross Dellenger (@RossDellenger) April 3, 2026
Under the directive, college athletes would be permitted to compete for a maximum of five seasons within a five-year period. The order also establishes that athletes may transfer schools once without being required to sit out a season prior to graduation. Institutions that allow participation by athletes who do not meet these criteria could face the loss of federal funding, according to reporting from ESPN.
The order is part of a broader effort to address changes in the college sports landscape, where extended eligibility and multiple transfers have become more common. In recent years, some athletes have remained in collegiate programs for six or more seasons, while others have transferred multiple times during their careers, developments often linked to expanded opportunities for NIL-related earnings.
The administration’s directive also seeks to limit what it describes as improper compensation arrangements. It prohibits certain entities, commonly referred to as “collectives,” from making direct payments to athletes that are not tied to market-based NIL value. Additionally, the order outlines a framework for revenue-sharing that is intended to preserve or expand scholarship opportunities in women’s and Olympic sports, while barring the use of federal funds for NIL-related compensation.
A social media post circulating alongside the announcement highlighted the policy changes and ongoing debate surrounding the issue.
Despite the scope of the order, questions remain about its enforceability. Legal analysts have raised concerns that portions of the directive could face constitutional challenges if implemented, particularly in areas involving federal authority over educational institutions and athletics governance.
The administration has indicated that compliance could be encouraged through financial mechanisms, including the potential withholding of federal funds from non-compliant institutions. However, recent judicial decisions have raised questions about the limits of such authority, including a ruling that restricted efforts to withhold federal funding from Harvard University in a separate dispute.
The executive order does not address several ongoing policy debates, including whether college athletes should be classified as employees of their schools. That issue remains central to legislative discussions on Capitol Hill.
According to ESPN, Senator Ted Cruz has stated it is “absolutely critical” that any new legislation include provisions preventing athletes from being designated as employees. Senator Maria Cantwell is engaged in ongoing bipartisan negotiations aimed at developing a legislative framework for college sports, though differences remain over employment status and collective bargaining rights.
Lawmakers from both parties are working toward a potential agreement this spring, but the classification of athletes and revenue-sharing structures tied to television contracts continue to be major points of contention.
The executive action represents the latest federal intervention in a rapidly evolving college athletics system, where governance, compensation, and player mobility remain under active debate.
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