Name, image and likeness (NIL) deals have transformed college athletics into a multibillion-dollar marketplace almost overnight. But for many student athletes, the money has arrived faster than the financial tools and guardrails needed to manage it. A bipartisan bill working its way through Congress aims to close that gap.

What Is the HUSTLE Act and How Would It Affect Student Athletes?

The Helping Undergraduate Students Thrive with Long-Term Earnings (HUSTLE) Act was introduced in the Senate in December 2025 by Senators Marsha Blackburn (R-TN) and Maria Cantwell (D-WA), with a companion House bill introduced in July 2026 by Representatives Greg Steube (R-FL) and Brendan Boyle (D-PA). The legislation has picked up bipartisan support, including co-sponsorship from Senator John Cornyn (R-TX), along with backing from the NCAA and several conference commissioners.

At its core, the bill does two things: it creates a new tax-advantaged savings vehicle for NIL income and puts new guardrails around the agents who represent student athletes.

HUSTLE Act Tax Provisions: NIL Investment Accounts

Right now, NIL income is generally treated as 1099 self-employment income, with no special tax treatment. The HUSTLE Act would change that by creating a new type of account, an “NIL Investment Account,” that student athletes could use to set aside a portion of their earnings.

Key features as proposed:

• Contribution limit tied to the gift-tax exclusion. Athletes could contribute NIL income up to the annual gift-tax exclusion amount ($19,000 for 2026).
• Tax-free growth. Once inside the account, funds would grow without current tax on investment gains.
• Favorable treatment on distribution. Withdrawals after graduation would generally be taxed at long-term capital gains rates rather than ordinary income rates, and funds could potentially be rolled into an IRA. Some early withdrawals, for career transitions, education or medical expenses, would be permitted without penalty.
• Financial education requirement. Account trustees would be required to provide annual financial education to participating athletes and the Treasury Department would be directed to issue implementing regulations.

The practical effect is to give athletes a mechanism similar in spirit to a Roth-style account, built specifically around the unique, front-loaded earning pattern of a college athletic career.

HUSTLE Act Agent Requirements and Protections

The second major piece of the bill amends the existing Sports Agent Responsibility and Trust Act. Since athletes gained the right to monetize NIL, there have been well-documented cases of agents charging excessive commissions or overreaching into an athlete’s intellectual property rights. To address that, the HUSTLE Act would:

• Require agents to register with a state before representing an athlete in NIL deals.
• Cap agent fees at 5% (down from commissions that have run as high as 20% in some cases).
• Require athletic associations, such as the NCAA, to maintain a public, searchable database of registered agents.
• Prohibit deceptive practices, including misrepresenting NIL opportunities to influence enrollment or transfer decisions.

A 5% cap would bring agent economics closer in line with what’s typical in other areas of athlete representation, while still leaving room for legitimate agents to be compensated for their work.

HUSTLE Act Legislative Status

The Senate version has been referred to the Committee on Finance, and as of now no vote has been scheduled. Like most tax legislation, it will need to clear committee, floor votes in both chambers and reconciliation between the House and Senate versions before it could become law. It’s a proposal, not yet the law of the land, but it’s worth watching closely given the bipartisan momentum and the scale of NIL dollars now flowing to student athletes.

Why the HUSTLE Act Matters for Student Athletes and Families

NIL deals generated well over a billion dollars in the 2023-2024 academic year alone, with that figure continuing to climb as revenue-sharing arrangements expand. For the relatively small group of athletes earning six and seven figures from NIL, a tax-advantaged account could mean real savings. For the much larger group earning smaller amounts, the agent protections and financial education requirements may end up being the more impactful piece of the bill.

Either way, families, schools and advisors working with student athletes should keep an eye on this legislation as it moves through Congress. FD will continue to track developments and will share updates as the bill progresses.

This article is for general informational purposes and does not constitute tax or legal advice. Please consult with a qualified advisor regarding your specific situation.

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