Power Plays and Policy: Federal Action on NIL Rights in College Sports

With the passing of the “House Settlement,” the ball is now in the legislative and executive courts. Currently, a myriad of state legislations governs Name, Image, and Likeness (“NIL”), with some scattered rules and guidelines from the NCAA. While several federal bills introduced, to date, none have been passed into law to date. Although there has yet to be a definitive legislative response from the federal government regarding NIL, notable developments have occurred recently. Driven by the finalization of the House Settlement and the need for clear federal NIL standards, Congress has introduced new legislation meant to codify the terms of the House Settlement, and the executive branch has weighed in, with President Trump issuing an executive order concerning NIL.

SCORE Act

Introduced on July 10, 2025, the Student Compensation and Opportunity through Rights and Endorsements (“SCORE”) Act aims to address the questions surrounding NIL and the House Settlement. The SCORE Act made it through a House committee on July 23, 2025, marking the first time an NIL bill has made it through a committee in either chamber. The bill passed through the House Energy and Commerce committee and the Committee on Education and the Workforce, clearing the way for it to go to the floor for a House vote. In addition to codifying many of the terms regarding NIL in the House Settlement, the proposed SCORE Act would prevent college athletes from being designated as employees and would give antitrust protections to the NCAA and conferences. Further, the bill would permit schools and conferences to create their own rules surrounding transfers, payment, and eligibility. The SCORE Act would preempt the current mix of state laws that govern NIL, establishing the first national response to NIL. However, the bill is not without opposition. Critics say that the SCORE Act comes at the expense of student athletes, arguing that it rolls back the rights of athletes that have been fought for through litigation and places too much power in the hands of the NCAA and the conferences. Further, smaller schools and conferences worry that the SCORE ACT will result in bigger schools becoming more powerful, while programs at small and mid-size schools will suffer. Support and opposition for the SCORE Act are largely split along party lines, with Republicans backing the bill and Democrats opposing it. While the SCORE Act could pass a House vote on partisan lines, it faces a much tougher challenge in the Senate.

“Saving College Sports”

Recently, the executive branch also entered the NIL realm as President Trump signed an executive order, titled “Saving College Sports,” recommending how NIL should be handled and directing government agencies to become involved. Signed on July 24, 2025, the executive order calls for the prohibition of third party, pay-for-play arrangements but permits legitimate, fair market value compensation provided by a third party to an athlete for deals such as brand endorsements. Additionally, the executive order directs the Secretary of Labor and the National Labor Relations Board to clarify the question of student-athletes as employees. Given the current Republican administration, it is likely that this will decrease the chances that student athletes will have the ability to organize. The executive order also calls for the involvement of the Attorney General and the Federal Trade Commission, directing them to act regarding antitrust and other legal challenges. Further, to address the post-House Settlement concerns that schools will funnel resources away from women’s and Olympic sports to higher revenue sports like football or basketball, the executive order calls for the preservation and expansion of competition and scholarship opportunities in non-revenue sports. To do so, the executive order sets benchmarks based on the amount of revenue generated by athletic departments and directs the Department of Education to use the disbursement of federal funds, Title IX enforcement, and interstate commerce laws to influence schools. The executive order also provides that revenue-sharing be implemented in a way that protects women’s and non-revenue sports.

Moving forward, while there has been significant progress, the federal response to NIL remains uncertain. Although the SCORE Act passed through committee, it must still go to the floor of the House for a vote and if passed there it would face an uphill battle in the Senate. Further, while the immediate effect of the President’s executive order is unclear, the involvement of the executive branch could motivate the legislature to take more definitive action to address the questions surrounding NIL.

If you or a family member have any questions about the ever-changing landscape of college athletics due to the House Settlement, please contact one of our experienced attorneys at Obermayer.

The information contained in this publication should not be construed as legal advice, is not a substitute for legal counsel, and should not be relied on as such. For legal advice or answers to specific questions, please contact one of our attorneys.