GOP Lawmakers Grill Biden-Era Spending on Student-Athlete Employee Status

Republicans are pushing for transparency, demanding records on how the Biden administration used taxpayer money to argue that student-athletes should be considered employees of their universities. Representatives Tim Walberg (R-Mich.) and Rick Allen (R-Ga.) have formally requested a detailed account of expenditures from National Labor Relations Board (NLRB) Chairman Marvin Kaplan and acting General Counsel William Cowen, focusing on the case against the University of Southern California, the Pac-12 Conference, and the NCAA. The core of the issue? The Biden administration's NLRB contended that these entities intentionally obscured college athletes' rights by labeling them 'student-athletes' instead of 'employees.' The request for expenditure reports comes as Capitol Hill increasingly eyes reforms for the NCAA's name, image, and likeness (NIL) rules, which now allow student-athletes to profit from their NIL – something previously prohibited. Walberg and Allen argue that these records are crucial for Congress to determine if legislative changes are necessary. 'The Committee is concerned that the Biden-Harris NLRB spent significant taxpayer resources pursuing a case meant to curry favor with union interests for nearly three years,' the letter states. 'The outcome could have upended intercollegiate athletics and stripped numerous scholarship opportunities from American students.' During the Biden administration, NLRB's general counsel, Jennifer Abruzzo, issued a memo in September 2021, asserting that the National Labor Relations Act supports the idea that certain players at academic institutions are statutory employees. This came shortly after the NCAA started allowing students to profit from NIL, bowing to public pressure and state court cases. The Trump administration has since rescinded the Biden-era memo insisting college athletes be recognized as employees under federal labor laws, and also revoked guidance that required schools to distribute direct NIL payments equally to male and female athletes. Aaron Withe, a government unionization expert and former college athlete, worries that pushing to view college athletes as employees will ruin college sports. He questions how unions might interfere with coaching practices and negotiations between athletes and universities. Withe also suggests that schools might cut sports programs if they don't generate enough revenue, undermining the meritocratic tradition of athletic competition and increasing financial burdens on schools. Walberg and Allen's letter highlights that student-athletes might have to start paying federal taxes on scholarship funds if they are deemed employees. On the other side, proponents argue it's high time student-athletes get a piece of the financial pie. Karla Walter from the Center for American Progress believes it's the government's job to ensure these athletes' rights are respected. Andrew Stettner from The Century Foundation adds that student-athletes, like anyone else whose labor enriches an entity, have the right to collectively bargain. Last year, the GOP-controlled Committee on Education and Workforce passed legislation to prevent college athletes from being considered employees, but it didn't progress further. Texas GOP Sen. Ted Cruz has signaled plans to reform the system, noting that the current landscape of college sports is like the 'wild West.' Currently, there's no federal legislation regulating the NIL framework, but numerous states have enacted laws permitting NIL payments for recruiting. The NCAA changed its rules in 2019, two years after states started implementing these laws. Seems like everyone's trying to figure out how to balance tradition with the changing realities of college sports. It's a tricky game, and I'm here for the drama!