Donald Trump has signed a new executive order aimed at tightening oversight of college sports, following recent changes that allow student-athletes to earn money.
The directive instructs the National Collegiate Athletic Association (NCAA) to set limits on athlete eligibility, proposing that competitors should participate for no more than five years. It also introduces updated transfer rules, permitting student-athletes to change schools once without having to sit out a season before graduating.
Set to take effect on August 1, the measures could lead to institutions losing federal funding if they fail to comply. Trump argued that the current landscape has placed increasing financial strain on universities, saying inconsistent rules have led to instability.
He criticized the lack of uniform limits on eligibility, transfers, and compensation, claiming it has triggered an “out-of-control financial arms race” that is pushing universities into debt.
The order also calls on governing bodies to address what it describes as improper financial arrangements and urges Congress to pass broader legislation on the issue.
It follows a previous directive signed in July that aimed to restrict certain third-party payments to athletes—particularly in high-revenue sports like football and men’s basketball—in an effort to safeguard funding for women’s and less profitable programmes.
Trump has repeatedly voiced concern about the rapid growth of name, image, and likeness deals, warning they could strain college athletic systems and lead to cuts in sports that have historically supported U.S. Olympic success.
These developments come after the Supreme Court of the United States ruled in 2021 that college athletes could receive compensation, ending the NCAA’s long-standing prohibition on payments tied to their name, image, and likeness.
