WASHINGTON – U.S. Senator John Cornyn (R-TX) cosponsored the Helping Undergraduate Students Thrive with Long-Term Earnings (HUSTLE) Act, which would create first-of-its kind name, image, and likeness (NIL) tax-advantaged investment accounts for student athletes, require trustees to provide financial education, and establish regulations to prevent abuse by athlete agents:

“Since the Supreme Court’s decision in 2021, college athletics has rapidly evolved into a complex industry that gives students unprecedented earning power but lacks the guardrails to prepare them for financial success after graduation,” said Sen. Cornyn. “The HUSTLE Act would optimize investment opportunities and modernize current law to ensure student athletes can save for their futures and have agents and advisors who act in their best financial interests.”

The legislation is led by Senators Marsha Blackburn (R-TN) and Maria Cantwell (D-WA).

Background:

Since the Supreme Court affirmed in 2021 that college athletes have a right to profit from their name, image, and likeness, (NIL) college athletics has turned into a multibillion-dollar marketplace. NIL deals generated more than $1.2 billion in the 2023-2024 period, with projections to exceed $2.5 billion by 2025-2026 if revenue sharing is fully implemented. While this new environment gives athletes unprecedented earning power, these athletes can often lack the financial tools, institutional support, or regulatory safeguards to navigate such a complex market. This mismatch—significant income paired with limited guidance—shows that student-athletes must be further empowered to invest in their financial futures and protect their long-term financial well-being.

The Helping Undergraduate Students Thrive with Long-Term Earnings (HUSTLE) Act would:

• Allow student-athletes to contribute their NIL income up to the annual gift-tax exclusion amount to an NIL Investment Account, with the funds growing tax-free;
• Allow up to $35,000 of unused NIL account funds to be rolled over into an IRA or other retirement vehicle once the athlete has been out of college sports for at least a year;
• Require trustees to provide financial education to ensure athletes understand and manage their NIL savings responsibly;
• And direct the U.S. Department of the Treasury to issue regulations to prevent abuse, ensure proper reporting, track contribution limits, and define additional qualified expenses.

The HUSTLE Act would also modernize the Sports Agent Responsibility and Trust Act by:

• Requiring athlete agents to register with a state before representing athletes in NIL endorsements;
• Capping agent fees at five percent and certifying their registration to the athletic association that governs the athlete’s sport;
• Further banning a range of deceptive practices, including misrepresenting NIL opportunities to influence enrollment or transfer decisions and signing athletes to contracts that extend beyond their eligibility;
• And requiring athletic associations to maintain a public, searchable online registry of all registered and certified athlete agents, dramatically increasing transparency for athletes and families.