President Donald Trump warned Friday that the turmoil surrounding name, image and likeness (NIL) payments in college athletics could destabilize not only sports programs but the broader U.S. higher education system, telling a White House roundtable that “the whole educational system is going to go out of business because of this” if reforms are not enacted quickly.
Trump made the remarks during a summit in the East Room that included lawmakers, conference commissioners, NCAA President Charlie Baker and the CEO of the U.S. Olympic and Paralympic Committee. Notably absent were current college athletes, despite NIL compensation being at the center of the debate.
Asked why he was dedicating time to college sports while the war with Iran and other foreign policy issues dominate headlines, Trump responded bluntly: “The whole educational system is going to go out of business because of this.”
The president said he is preparing an “all-encompassing” executive order within a week aimed at forcing congressional action. He also acknowledged the order could trigger legal challenges that would send the issue back into federal court, potentially revisiting the judicial decisions and settlements that opened the door to widespread NIL compensation.
Trump criticized the recent court-approved settlement that reshaped the NCAA’s compensation model, calling it “horrible” and saying it “threw the sports world and … the college athletic world into ‘tithers.’” The settlement paved the way for schools to share revenue directly with athletes in addition to NIL deals, fundamentally altering the amateur model that had defined college sports for decades.
“I thought the system of scholarships was great,” Trump said, referencing the prior structure in which athletes primarily received tuition, housing and related financial aid rather than direct compensation.
Virtually every major stakeholder at the meeting agreed that the current system is financially unstable, with many schools reportedly operating at significant deficits as they scramble to meet NIL expectations in recruiting and roster retention.
A central legislative proposal discussed was the SCORE Act, a bill that has struggled to advance in the House but is viewed by some lawmakers as the framework for national standards governing NIL and revenue sharing. House Speaker Mike Johnson signaled that momentum may be building, suggesting there could now be enough votes to pass the measure.
SEC Commissioner Greg Sankey urged federal lawmakers to act, emphasizing that the issue is not merely about revenue distribution but governance.
“This is not about revenue, this is about structures and national standards,” Sankey said, referencing provisions in the SCORE Act that would grant the NCAA a limited antitrust exemption — a point of contention among many Democrats.
Sen. Ted Cruz, whose committee would play a key role in shepherding any bill through the Senate, said lawmakers must address both spending controls and revenue models.
“If we wait another year, wait another two years, the programs in your state are going away and the students in your state are losing their scholarships,” Cruz said. “It would be an absolute travesty if we let that happen.”
One proposal discussed at the summit would amend the Sports Broadcasting Act to allow college conferences to pool television rights, potentially increasing revenue by billions. Texas Tech regent Cody Campbell, a proponent of the idea, told Trump he would like to participate in a smaller working group to help draft the executive order.
During the event, Trump also made a lighthearted remark about Secretary of State Marco Rubio, noting what he described as a “conflict of interest” because Rubio’s son participates in NIL compensation. The comment drew laughter in the room, underscoring how pervasive NIL earnings have become — reaching even into the families of top administration officials.
This was pretty funny…
President Trump highlights Marco Rubio’s HUGE “Conflict of Interest” that his son makes money participating in the NIL as he spoke on athletic compensation..
It’s only a couple thousand.. lol pic.twitter.com/pFsRVR2TZ2
— MJTruthUltra (@MJTruthUltra) March 6, 2026
The NCAA’s current environment has seen top athletes command multi-million-dollar NIL deals, while smaller programs struggle to compete financially.
Supporters of NIL reforms say federal legislation is necessary to provide clarity, limit legal exposure for schools and establish guardrails on compensation practices. Opponents warn that aggressive federal intervention could undermine athletes’ newly recognized earning rights.
This article may contain commentary which reflects the author's opinion.
