Blackburn, Cantwell Introduce Legislation to Help College Athletes Save for the Future by Investing NIL Earnings

WASHINGTON, D.C. - U.S. Senators Marsha Blackburn (R-Tenn.) and Maria Cantwell (D-Wash.) introduced 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.

In 2021, the National Collegiate Athletic Association (NCAA) allowed student-athletes to profit from their name, image, and likeness, which has now become a multibillion-dollar marketplace. With these NIL agreements opening the door to new economic freedoms, the HUSTLE Act would ensure college athletes have strong protections, clear guidance, and financial literacy to help them better navigate the world of college athletics.

"College athletes are now earning billions of dollars from their name, image, and likeness-and rightly so. We must empower these students to safeguard their financial future and protect themselves against rogue agents," said Senator Blackburn. "The HUSTLE Act would allow college athletes to invest their earnings in a tax-advantaged account that grows over time, strengthen financial education, and create safeguards to prevent exploitation by dishonest agents."

"This bill focuses in on the financial security and safety of college athletes who - finally - are earning compensation for their name, image, and likeness (NIL)," said Senator Cantwell."Many of these athletes will be in a unique situation where they will earn NIL income during a relatively brief period of their careers. Our bill will set up a specific NIL Account where they can set aside some of that income and build long-term savings. The bill also will protect athletes and their NIL earnings against financial exploitation by unscrupulous agents. Since athletes have been able to earn NIL, some have been victimized by agents who have charged shockingly high commissions or have tried to take ownership of the athlete's intellectual property rights. Our bill will rein in these abuses and require agents to register with a state."

BACKGROUND

• Since the Supreme Court affirmed in 2021 that college athletes have a right to profit from their name, image, and likeness, college athletics has turned into a multibillion-dollar marketplace. NIL deals generated over $1.2 billion in the 2023-2024 period, with projections to exceed $2.5 billion by 2025-2026 if revenue sharing is fully implemented.
  
  
• Athletes who just a few years ago were prohibited from accepting basic sponsorships are now signing deals with national brands, monetizing social media platforms, licensing personal trademarks, and participating in increasingly complex commercial partnerships.
  
  
• While this new environment gives athletes unprecedented earning power, these athletes can often lack the financial tools, institutional support, or regulatory safeguards necessary to navigate such a complex market.
  
  
• In a 2022 NCAA survey of over 9,800 athletes, 49% indicated a need for educational resources specifically on tax and financial literacy. In the same study, only 9% of student-athletes had ever met with a financial counselor.
  
  
• 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 HUSTLE ACT

• The HUSTLE Act would:

• 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 5 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-such as the NCAA or other national governing bodies-to maintain a public, searchable online registry of all registered and certified athlete agents, dramatically increasing transparency for athletes and families.
    
    

Click here for bill text.

WHAT THEY ARE SAYING

Senators Blackburn and Cantwell have worked with outside entities to solicit feedback for this bipartisan legislation to support college athletes:

"Senator Blackburn is an advocate for student-athletes and continues to pursue innovative solutions related to their name, image, and likeness. At UT, we have long prioritized providing student-athletes with opportunities to build strong financial literacy. Federal incentives that support saving and investing NIL assets will further empower them to secure a strong financial foundation and thrive long after their time on Rocky Top," said University of Tennessee, Knoxville.

"The Southeastern Conference is grateful for the continued engagement of lawmakers in addressing the evolving needs of student-athletes. The HUSTLE Act represents a constructive approach by establishing tax-advantaged NIL investment accounts that encourage financial education, long-term savings, and responsible management of earnings. We appreciate Congress's sustained bipartisan commitment to developing national, consistent standards that support student-athletes and enhance their opportunities in this rapidly changing environment,"said SEC Commissioner Greg Sankey.

"As result of sweeping changes to college sports, this year, student-athletes will receive approximately $1 billion in direct financial benefits from their universities, as well scholarship guarantees and greater support for their mental health and wellbeing. The NCAA fully supports providing athletes with more resources to achieve long term financial success and cracking down on unscrupulous agents to protect student-athletes," said Tim Buckley, Senior Vice President of External Affairs at NCAA.