On April 3, 2026, President Donald Trump signed an executive order titled “Urgent National Action to Save College Sports” — the administration’s second effort to implement a national framework for name, image and likeness (NIL) compensation and related issues. The Order aims to address the “chaotic state of affairs” in collegiate athletics, which the Order notes has “undermined competition, reduced opportunities for student-athletes, and jeopardized support for the current range of collegiate athletics, particularly women’s and Olympic sports.”
The Order seeks to implement a consistent set of rules related to eligibility, transfers and pay-for-play by requiring and encouraging action in three key areas: 1) federal agency action; 2) rulemaking by the “interstate intercollegiate athletic governing body” (presumably the NCAA); and 3) legislative action.
Federal Agency Action. Federal agencies must immediately begin work to ensure that regulatory or policymaking measures are in place by the Order’s effective date of Aug. 1, 2026. Agencies are also charged with ensuring that recipients of federal funding are complying with “interstate intercollegiate athletic governing body” rules that are in effect as of Aug. 1, 2026. Specifically, agencies that provide federal funding to higher education institutions must review an institution’s compliance with Governing Body rules on eligibility limits, transfers, revenue sharing permitted between higher education institutions and student-athletes, and improper financial activities.
According to the Order, “improper financial activities” by an institution of higher education include:
- Intentionally devising or participating in a fraudulent NIL scheme;
- Knowingly accepting contributions, financial or otherwise, from persons who intentionally devise or participate in a fraudulent NIL scheme;
- Using federal funds for NIL or revenue-sharing payments or for any type of payment or benefit to a coach, assistant coach, general manager, recruiter, or other person engaged in coaching or managing an athletic team; and
- Tortiously interfering with a contract between a student-athlete and another federally funded higher education institution, including a scholarship agreement.
The Director of the Office of Management and Budget must issue guidance to the agencies to ensure compliance with the Order. The Order also directs the Secretary of Education to consider engaging in rulemaking to require regular reporting by higher education institutions on issues related to collegiate athletes, including money spent on athletics-related student aid for men’s and women’s teams and overall.
Governing Body Action. The Order also states that the Governing Body should consult with student-athletes and, “in its discretion, update or clarify its rules before August 1, 2026, as appropriate, to adequately protect opportunities for scholarships and collegiate athletic competition in women’s and Olympic sports and ensure the financial stability of higher education institutions.” The Order states that the Governing Body should establish the following rules “to the extent permitted by law and applicable court orders:”
- Age-based eligibility limits to promote fairness, consistency, safety and opportunities for student-athletes under which participation in college athletics is permitted for no more than a five-year period, with limited exceptions, and professional athletes cannot return to college athletics;
- Transfer-related rules that a) provide for the ability to transfer one time during the five-year period with immediate playing eligibility and one additional time if the student-athlete obtains a four-year degree; b) prioritize the academic development, success, graduation and long-term well-being of student-athletes; and c) 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;
- Medical care for student-athletes for intercollegiate-athletics-related injuries during their period of enrollment and for a reasonable period of time thereafter;
- Revenue-sharing between higher education institutions and student-athletes in a manner that preserves or expands scholarships and collegiate athletic opportunities in women’s and Olympic sports;
- Prohibition on the use of federal funds by higher education institutions for NIL or revenue-sharing payments or coaching or athletic compensation;
- Prohibition on improper financial activities regarding student-athletes, including collectives or other entities or methods used to facilitate third-party, pay-for-play payments; and
- A national student-athlete agent registry and reasonable protections for student-athletes from excessive agent commissions.
Legislative Action. The Order directs the Attorney General to take appropriate measures to invalidate state laws that conflict with Governing Body rules.
Taken together, the Order messages to Congress and the NCAA President Trump’s expectations regarding eligibility, transfers and pay-for-play rules. The Order itself does not have a binding effect on the NCAA or the referenced Governing Body, and it remains to be seen whether the NCAA will engage in rulemaking that is consistent with the Order’s framework. Moreover, the suggested framework in the Order conflicts with court rulings in some areas, including rulings allowing for multiple transfers. The Order provides clarity on the administration’s policy priorities as courts continue to address these issues and as Congress considers a national legislative solution to the challenges facing collegiate sports (similar to the SCORE Act, currently stalled in the House of Representatives).
Next week, an NCAA Committee is projected to review a new age-based framework for student-athlete eligibility, which proposes five years of eligibility from the earlier of their 19th birthday or their high school graduation.
McGuireWoods continues to monitor agency, NCAA, and state and federal legislative action related to the evolving framework applicable to collegiate sports. For questions, contact the authors of this article or a member of the Sports Industry Team or the Higher Education Enforcement & Regulatory Counseling Practice Group.
For additional insights across the sports ecosystem, McGuireWoods will convene leading industry participants at its upcoming Sports Investing Symposium on May 12, 2026, in New York, where we will explore these themes in greater depth, including the intersection of collegiate athletics, private capital and emerging investment opportunities. Apply to attend today.