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WASHINGTON, July 24 (Reuters) - U.S. President Donald Trump on Thursday signed an executive order that the White House said was aimed at curbing the influence of big-money payouts in college sports like football and men's basketball.
The White House said the order would block "third-party, pay-for-play payments" to college athletes, without affecting fair-market compensation for brand endorsements.
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It also directs U.S. officials to "clarify" the legal status of student-athletes, with the White House saying the changes would help preserve scholarships and competition in women's and non-revenue sports.
The order could have ramifications for in multimillion-dollar market for U.S. college athletes. It was not immediately clear how the order would be enforced.
The National Collegiate Athletic Association, which governs U.S. sports at the college level, had long prohibited student athletes from receiving compensation for athletics outside of scholarships in a bid to preserve the amateurism of college sports and keep the playing field fair for recruiting.
But in June 2021, the organization approved an interim policy allowing college athletes to make money by selling their name, image and likeness (NIL) rights.
The policy allowed student athletes to make money through activities things like signing autographs, endorsing products or businesses and making personal appearances so long as the activities were legal in state where the school was located.
In March 2025, the NCAA agreed to permanently eliminate its rule that prohibited student athletes from negotiating NIL deals before enrolling in a school.
The change came a day after a legal settlement between the NCAA and a group of state attorneys general who had sued the organization, arguing that the restriction violated federal antitrust law.
"President Trump recognizes the critical role of college sports in fostering leadership, education, and community pride," the White House said in a statement.
The changes in recent years on NIL payments, the White House said, "has created a chaotic environment that threatens the financial and structural viability of college athletics."
Reporting by Trevor Hunnicutt in Washington and Frank Pingue in Toronto; Additional reporting by Bhargav Acharya and Jasper Ward; Editing by David Gregorio
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