Each week, Liebert Cassidy Whitmore provides a summary of newly issued Executive Orders and other significant Presidential and federal actions that have a foreseeable impact on governance, compliance, and operational policies for California employers. The summaries below outline the key provisions of each action, along with our brief analysis of their potential implications for municipal agencies, school districts, private schools, and nonprofits.
Executive Order: Saving College Sports (July 24, 2025)
On July 24, 2025, President Trump issued an Executive Order that seeks to empower federal agencies, including the Department of Education, to enforce new provisions on athletic scholarships and “pay-for-play” licensing deals for student athletes.
In response to recent legal decisions and the evolving landscape of student-athlete compensation, the Order expresses the administration’s intent to rein in name, image and likeness (NIL) deals for student athletes. The Order directs college athletic departments with over $125 million in revenue to expand scholarship and roster opportunities in non-revenue sports and women’s athletics, and to curb third party pay-for-play arrangements.
Within 30 days, the Department of Education must develop a plan, in consultation with other federal agencies, to enforce the policies in the Order through all appropriate regulatory, enforcement, and litigation mechanisms, including federal funding decisions and enforcement of Title IX. Further, the Department of Labor and the National Labor Relations Board must develop measures to clarify the status of student athletes (i.e., employees or not).
California public and private colleges, especially those with large athletic budgets, may be impacted by the guidance that federal agencies promulgate pursuant to the Order. Institutions of higher education should review their NIL practices for consistency with the policies articulated in the Order. LCW will provide updates regarding agency action related to the Order.
LCW will continue to monitor impacts on educational institutions.
If you have any questions about the above linked Presidential actions, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento offices.