President Donald Trump signed an executive order last week imposing new limits on college athlete eligibility and transfers amid concerns over Name, Image, and Likeness (NIL) rules. The order allows athletes five years of eligibility, restricts most to one transfer, and permits an additional one after a four-year degree. It takes effect on August 1, with federal funding at risk for non-compliant universities.
The White House described the current system as “an out-of-control financial arms race” fueled by NIL deals and a fluid transfer portal, following court rulings including a Supreme Court decision that weakened the NCAA's restrictions on athlete compensation. Trump’s order states that the changes aim to “ensure that the transfer window does not incentivize interference with athletic seasons or the academic year, or otherwise undermine the integrity of participation and competition in college athletics.” It also prohibits professional athletes from returning to college teams, closing loopholes used by some who played in Europe or the NBA’s G League. “Fair competition cannot occur without a consistent set of rules concerning pay-for-play or player eligibility that cannot be endlessly relitigated in court,” the order adds. The policy highlights pressures driving universities into debt, threatening non-revenue sports and student education. “Absent a comprehensive national solution... the escalating financial demands... may force curtailment of women’s and Olympic sports,” it warns. Fans and coaches have criticized the lack of structure in transfers since NIL began, with players acting as free agents seeking better deals. The “Power 4” conferences praised the action and called for Congress to legislate solutions. Hall-of-fame coach Nick Saban commended Trump for “regulation that would help us manage and fund all sports, so that we can continue to create opportunities for young people.” Former Michigan quarterback David Cone, speaking to The Daily Wire, expressed skepticism about Congress acting, predicting courts might overturn the order without legislation.