The Trump administration's Department of Education recently retracted a Biden administration fact sheet that argued Title IX should apply to how future NIL funds are to be distributed to athletes. The Biden administration's argument was that the funds – to be distributed under the terms of a class-action settlement – should be treated in the same way as financial aid is under Title IX. That guidance – which was not binding as law – has now been retracted.

NIL laws, rules, and regulations are complicated, confusing – and changing. If you are a student-athlete who may benefit from an NIL deal at your school, if you have questions about NIL funds you are currently receiving, need help negotiating an NIL deal, or just wonder how you can make your NIL rights work for you, contact the Lento Law Firm's Student Defense Team. Our attorneys stay up to date on the latest in NIL law and can help. Call us at 888.535.3686, or fill out and submit our contact form to schedule a consultation.

The NIL Lawsuits

The issues covered by the fact sheet issued by the Biden administration – and quickly retracted by the Trump administration – related to several class-action antitrust lawsuits brought by athletes who argued that the NCAA unfairly profited from the use of the players' names, images and likenesses, and restricted them from being able to earn money from endorsements and other commercial opportunities. The proposed settlement of those lawsuits would result in payments, over a 10-year period, of some $2.8 billion to present and former Division 1 athletes. Going forward, the settlement would also allow participating colleges and universities to share up to $21 million per year in media, ticket, and sponsorship revenue with athletes – in addition to scholarships and other forms of current aid that athletes receive.

The Biden Administration's Fact Sheet

The Biden administration issued a “fact sheet” in December of 2024 asserting that the up-to-$21 million per year in funds to be distributed to athletes going forward should be treated in the same way that current financial aid is treated. In other words, the Biden administration argued that Title IX's requirement for financial aid distributed to male and female athletes should also apply to future NIL funds.

The Trump Administration's Retraction

In mid-February of 2025, the Trump administration's Department of Education retracted the Biden fact sheet, describing it as “overly burdensome, profoundly unfair,” and going “well beyond what agency guidance is intended to achieve.” The retraction argued that “Title IX says nothing about how revenue-generating athletics programs should allocated compensation among student athletes.”

Notably, the Biden-era “fact sheet” was not binding on either courts or schools. Similarly, the Trump administration's retraction of the fact sheet won't be. The question of how those future funds will be distributed is likely to end up in court no matter what method schools take.

The Lento Law Firm's Student Defense Team Can Help With NIL Questions

NIL laws are still developing and vary from one state to another. If you are a student-athlete, whether and to what extent you are able to benefit from an NIL agreement can vary significantly depending on where you attend school, what sport you compete in, and your reputation and skills as an athlete. If you have questions about what you're allowed to do or need help reviewing or negotiating an NIL contract, the Lento Law Firm's Student Defense Team is here to help.

Our experienced attorneys are on top of the changing NIL developments and can advise you on what your rights are and how best to assert them when seeking to benefit from an NIL agreement. Call us today at 888.535.3686 or use our contact form, and we will schedule a confidential consultation to hear about your situation and let you know how we can help.