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Trump’s NIL Order Triggers Federal College Regulations and Leaves High-School Deals Unregulated

Federal agencies have begun expedited rule-making to standardize college NIL practices by prohibiting third-party pay-for-play.

Hamden High School (Hartford Courant)
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Overview

  • The July 24 executive order mandates interagency coordination among the Education Department, Labor Department, FTC, DOJ and HHS to create uniform NIL rules and confirms that student-athletes are not university employees.
  • High-school NIL programs are active in 39 states and the District of Columbia, with deals ranging from Malachi Nelson’s six-figure contract as a junior to Zion Cruz’s apparel sponsorship.
  • Analysts warn that unchecked high-school NIL deals risk distorting college recruiting, deepening regional and gender inequities, and incentivizing families to relocate for endorsement eligibility.
  • Implementation of the $2.8 billion House v. NCAA settlement is under way, but a Ninth Circuit Title IX appeal and ongoing litigation cast doubt on full back-pay distribution and equity safeguards.
  • Advocates urge the National Federation of State High School Associations to develop a voluntary model NIL code with age limits, disclosure requirements and financial-literacy protections to harmonize state policies.