Trump Rolls Back Biden Rules on “Equitable” Compensation for College Athletes

The Trump administration has rescinded a controversial Biden-era guidance linking student-athlete compensation to Title IX compliance, citing lack of legal justification and undue burden on educational institutions.

At a Glance

  • Trump administration rescinds Biden-era guidance on NIL compensation and Title IX
  • Acting Assistant Secretary Craig Trainor deems guidance overly burdensome and lacking legal basis
  • Biden guidance required gender-equitable distribution of NIL compensation
  • Move aligns with broader Trump administration emphasis on Title IX enforcement
  • Decision impacts revenue-sharing models in collegiate athletics

Trump Administration Overturns Biden-era NIL Guidance

In a significant shift in collegiate sports policy, the Trump administration’s Department of Education has rescinded guidance issued by the Biden administration that linked Name, Image, and Likeness (NIL) compensation for student-athletes to Title IX compliance. The decision, announced by Acting Assistant Secretary for Civil Rights Craig Trainor, marks a departure from the previous administration’s approach to gender equity in collegiate athletics.

The Biden administration’s guidance, issued just before Trump’s inauguration, had categorized NIL compensation as “athletic financial assistance” that should be equitably distributed between men’s and women’s programs. This interpretation aimed to ensure gender parity in the rapidly evolving landscape of student-athlete compensation.

Legal and Practical Concerns

Trainor and the Trump administration cited several reasons for rescinding the guidance, primarily focusing on its lack of legal foundation and the potential burden on educational institutions. The Department of Education argued that Title IX, enacted over 50 years ago, does not specifically address the allocation of revenue from athletics programs based on gender.

“Enacted over 50 years ago, Title IX says nothing about how revenue-generating athletics programs should allocate compensation among student athletes. The claim that Title IX forces schools and colleges to distribute student-athlete revenues proportionately based on gender equity considerations is sweeping and would require clear legal authority to support it. That does not exist. Accordingly, the Biden NIL guidance is rescinded,” said Craig Trainor Acting Asst. Sec. for Civil Rights.

The rescission effectively removes the requirement for colleges and universities to ensure proportional distribution of NIL compensation between male and female athletes. This change aligns with the Trump administration’s broader approach to Title IX enforcement, which emphasizes what they consider to be a more legally grounded interpretation of the law.

Implications for Collegiate Athletics

The decision to rescind the guidance has significant implications for collegiate athletics programs across the country. Under the previous guidance, schools were required to reconsider their revenue-sharing plans to comply with gender equity considerations. The removal of this requirement may allow for more flexibility in how institutions manage NIL deals and revenue distribution.

“The NIL guidance, rammed through by the Biden Administration in its final days, is overly burdensome, profoundly unfair, and it goes well beyond what agency guidance is intended to achieve,” Craig Trainor said.

Critics of the Biden-era guidance, including many Republicans, had argued that it could potentially lead colleges to cut athletics programs to avoid compliance issues. The Trump administration’s action addresses these concerns while reaffirming their commitment to what they describe as lawful and impartial enforcement of Title IX standards.

The rescission of the NIL guidance occurs against the backdrop of ongoing debates in collegiate sports, including a recent settlement in the House v. NCAA case that mandates revenue sharing with athletes starting in the 2025-26 academic year. Some athletes, particularly groups of women athletes, have raised concerns about the equitable distribution of these benefits.