This is idiotic in every way, and could well lead to many programs dropping football entirely.
Let's start with some basic math. D-1A teams have 85 players on scholarship, plus 20 more walk-ons who are non-scholarship. Just providing those 85 scholarship players with this extra stipend would cost an additional $170,000. Of course, legally the schools can't provide this for one sport and not for another....and they sure as hell can't provide them for men and not for women...so you're looking at, bare minimum, an additional $500,000 being laid out every single year.
This could absolutely kill the smaller programs like the MAC and Sun Belt. Schools like Kent State and Akron either lose money or
barely scrape by, and now adding all of this on might just be enough to make the administrators say that enough is enough.
Here, if you want to see what schools are making and spending, look it up here. It's from 2004-05, but the finances haven't truly changed that much at the smaller schools.
NCAA Financial Reports Database | IndyStar.com
Notice that when you punch in a larger school, the football profits (click "expense statement", then look at the bottom where it says "expense to revenue difference") are massive....and yet the athletic department revenues are not. That's a direct result of football and basketball offsetting the losses of all the other sports, so even Texas, Tennessee, Ohio State, and Auburn aren't really making much of anything.
So in order to pay for this additional paycheck (and that's what it is), either ticket prices will have to be raised, donors will be asked to cough up the difference, or student fees will have to be raised. That's all well and good at the larger schools, but the smaller ones...good luck with that. Look at Kent State and Eastern Michigan, who
combined don't have $500,000 in football ticket sales for the entire year. Or look at West Virginia, posting a loss of over $2,000,000.