Credited from: INDIATIMES
President Donald Trump signed an executive order on July 24, 2025, aimed at reforming the college sports landscape by banning "pay-for-play" payments to student-athletes. This order seeks to tackle the growing influence of large financial incentives that some argue undermine fair competition, particularly in high-revenue sports like football and men's basketball. The White House expressed concerns about a "chaotic environment" affecting the structural viability of college athletics due to these payments, which it classified as inducements that disrupt the competitive balance and siphon resources from sports programs with less revenue potential, according to Reuters and India Times.
The executive order also mandates that athletic departments with revenues over $125 million must expand scholarship offerings for women's and non-revenue sports while departments earning between $50 million and $125 million cannot reduce those opportunities. Trump emphasized that the federal government should use its funding power and regulatory mechanisms to enforce these changes, according to CBS News and NPR.
Additional elements of the order include instructions for federal agencies to clarify the employee status of college athletes, a move that may pave the way for student-athletes to organize unions. NCAA President Charlie Baker has expressed support for Trump's efforts, indicating that federal legislation might be necessary to effectively address the ongoing evolution and challenges within college sports, especially as it relates to athlete compensation laws. Baker noted that this support for student-athletes must balance the needs of all sports, according to Newsweek and Reuters.
The nature of this executive order is expected to spur discussions and potential legal debates within the realm of college athletics, particularly concerning the implications for universities and their funding mechanisms. Legal experts have pointed out that the order might prompt significant changes but could also face challenges that question its constitutional validity and enforcement capabilities, according to India Times and CBS News.