US President Donald Trump has signed a new executive order aimed at tightening regulations around college sports, particularly following recent changes that allow student-athletes to earn money.
The order directs the National Collegiate Athletic Association (NCAA) to introduce limits on how long athletes can compete, stating they should be eligible to play for “no more than a five-year period.” It also calls for new transfer rules, allowing student-athletes to switch schools once without being required to sit out a season before graduating.
The measures are set to take effect from August 1, with institutions that fail to comply potentially facing the loss of federal funding. Trump said the current system has led to growing financial pressure on universities, arguing that a lack of consistent regulation has caused instability.
“The loosening of consistent rules or limits concerning eligibility, transfers, and pay-for-play schemes has created an out-of-control financial arms race… that is driving universities into debt,” he said.
The executive order also urges governing bodies to crack down on what it describes as “improper” financial arrangements and calls on Congress to introduce legislation to address the issue more broadly.
It follows a previous order signed in July that sought to restrict certain third-party payments to athletes, particularly in high-revenue sports such as football and men’s basketball, in an effort to protect funding for women’s and less profitable sports.
Trump has previously raised concerns about the increasing value of name, image, and likeness (NIL) deals, warning that they are placing strain on college athletic programmes and could lead to cuts in sports that have traditionally contributed to US Olympic success.
The changes come after a 2021 Supreme Court ruling allowed college athletes to receive compensation, ending the NCAA’s long-standing ban on payments tied to their name, image, and likeness.