On July 24, 2025, President Donald Trump issued an executive order aimed at reshaping the regulatory framework surrounding college athletics. The directive instructs the Department of Labor and National Labor Relations Board (NLRB) to issue guidance clarifying whether student-athletes should be legally considered employees of their institutions. It seeks to balance the burgeoning commercialization of college sports with educational priorities while reinforcing support for athletes through Title IX compliance and scholarship protections.
The order also brings federal agencies such as the Department of Justice, Federal Trade Commission, and Department of Education into the discussion on regulating NIL (Name, Image, and Likeness) agreements. Its goals include introducing uniform NIL standards across states, limiting high-value third-party deals, and protecting competition in women’s and non‑revenue sports. The administration justified the move by highlighting a chaotic environment of bidding wars and inconsistent state laws undermining NCAA authority.
Rather than assigning employees status to athletes outright, the executive order calls on federal authorities to issue guidance that maximizes educational opportunities, prevents professionalization of collegiate sports, and preserves scholarships and roster access for non-revenue programs. It further asserts the importance of college athletics in sustaining U.S. Olympic pipelines and maintaining gender equity under Title IX regulations.
Policy observers note the order aligns closely with the interests of the NCAA and Republican lawmakers aiming to shield universities from antitrust challenges and reduce the risk of further litigation over athlete status. The administration’s approach supports federal standardization while stopping short of granting athletes labor protections such as unionization rights or minimum wages.
The move arrives amid mounting legal developments, including a landmark Third Circuit Court of Appeals ruling that allows Division I athletes to pursue employee classification for labor protections. Despite this, the NLRB under Acting General Counsel William Cowen rescinded a 2021 memo by predecessor Jennifer Abruzzo that had supported athlete employee status—signaling a shift in federal labor policy away from unionization efforts.
Critics argue the order primarily reinforces NCAA control and curbs athlete empowerment. Legal advocates warn that treating athletes as non-employees limits access to collective bargaining and broader labor law protections. Meanwhile, some legislators push forward with comprehensive legislation like the SCORE Act, which proposes explicit federal NIL regulations and athletes’ rights to organize—calling into question whether the executive order will suffice for structural reform.
In summary, the executive order marks a significant federal intervention intended to standardize NIL practices, preserve educational integrity in college sports, reinforce scholarship access, and manage athlete status through administrative guidance. Its effectiveness, however, will depend on forthcoming agency rules, legal interpretations, and whether Congress enacts accompanying legislation.
