Trump Signs Order to Define College Athletes’ Employment Status/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump has signed an executive order directing federal agencies to clarify whether college athletes are employees. The move comes amid growing turmoil in the NCAA’s NIL era. Trump’s administration says the goal is to stabilize college athletics and preserve educational opportunities.
Trump’s College Sports Order + Quick Looks
- Trump signs executive order targeting college athlete classification
- Order instructs Labor Department, NLRB to issue guidance
- Intention is to create national NIL and employment standards
- Executive action avoids current legislative proposals in Congress
- College sports industry faces major changes, revenue sharing
- NCAA, Big Ten coaches, and school leaders react cautiously
- Calls for preserving non-revenue sports and Title IX equity
- Justice Department, FTC asked to protect athlete rights via litigation
- Universities brace for possible legal and labor implications
Trump Signs Order to Define College Athletes’ Employment Status
Deep Look
In a sweeping move aimed at calming the increasingly chaotic world of college athletics, President Donald Trump signed an executive order Thursday directing federal agencies to determine whether college athletes qualify as employees. The order, issued amid ongoing debates about the financial rights of student-athletes and how universities should respond, seeks to establish national guidelines in an era dominated by name, image, and likeness (NIL) profits.
The order mandates that the U.S. Secretary of Labor and the National Labor Relations Board (NLRB) issue guidance clarifying athlete employment status “in a manner that maximizes educational opportunities.” While the order does not specify what that classification should be, it represents the most direct federal intervention in college sports since the NCAA allowed NIL deals in 2021.
Trump criticized the current structure as “rudderless,” citing the rise of pay-for-play culture, frequent athlete transfers, and donor bidding wars.
“It is common sense that college sports are not, and should not be, professional sports,” the executive order reads. “Absent guardrails… many college sports will soon cease to exist.”
This decision sidesteps months of speculation that the White House might propose a federal college sports commission. Instead, Trump opted for executive authority to begin building a regulatory framework.
A Multibillion-Dollar Industry in Flux
The college athletics landscape has dramatically shifted since athletes were first allowed to profit from their personal brands. Following a 2021 Supreme Court ruling that struck down caps on education-related benefits, the NCAA cleared the way for NIL deals. As of July 1, schools may now legally pay athletes directly, allocating as much as $20.5 million annually per institution, thanks to the $2.8 billion House settlement.
Athletes can now profit through sponsorships and even transfer freely between schools without penalty, leading to rising concerns among coaches and school leaders. Purdue football coach Barry Odom, speaking from Big Ten Media Days in Las Vegas, said the Trump order might be necessary.
“We’ve gotten to the point where government is involved. Obviously, there’s belief it needs to be involved.”
NCAA President Charlie Baker expressed appreciation for Trump’s action and called for swift bipartisan collaboration to enact a federal NIL law. The country’s largest athletic conferences echoed that call, stating that national standards are urgently needed.
However, Trump’s order does not mention legislative efforts already underway in Congress or the NCAA’s long-standing push for limited antitrust exemptions to avoid further lawsuits.
Employment Status Could Redefine College Sports
At the heart of the issue is whether student-athletes are legally employees of their universities. If deemed so, colleges could be required to pay wages, offer benefits, and provide worker protections, including workers’ compensation. The implications vary: while private universities fall under the NLRB’s purview, public universities are governed by state labor laws—many of which include “right to work” statutes that complicate unionization.
Some coaches and administrators have floated the idea of collective bargaining as a way to manage the current environment. But institutions remain resistant, arguing that a shift to employment status could jeopardize the entire model of collegiate athletics.
Trump’s executive order also includes several specific directives:
- Protecting Non-Revenue Sports: The order calls for preserving or expanding scholarships and roster spots for non-revenue sports (such as swimming, wrestling, and track and field). This move seeks to address concerns that revenue-sharing models could threaten Olympic development programs and Title IX compliance.
- Legal Defense Against Lawsuits: The Department of Justice and Federal Trade Commission are instructed to “preserve college athletics through litigation” and support universities in legal battles over athlete eligibility and compensation.
- Support for Olympic Development: The order directs White House officials to work with the U.S. Olympic & Paralympic Committee to ensure college athletics continue to produce athletes for Team USA—many of whom emerge from non-revenue programs.
The NCAA has long held that student-athletes are scholars first, not employees. But with billions of dollars flowing through collegiate sports, that philosophy has been challenged in courtrooms and locker rooms across the country.
Broader Context and What’s Next
Trump’s order follows broader tension between his administration and elite academic institutions. Earlier this month, Trump threatened to cut federal funding to Harvard University and publicly criticized the NCAA’s governance structure.
For now, the executive order adds a new layer of complexity without imposing immediate regulatory change. It opens the door for future rulemaking from federal labor authorities and gives universities and conferences time to prepare for what could be a fundamental shift in how student-athletes are treated under U.S. law.
Whether Congress will take up the issue remains unclear. But Trump’s move ensures it will stay in the national spotlight heading into a high-stakes election season.
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