# 119-hr-10236: Protecting Student Athletes from Unexpected Tax Liability Act

119-hr-10236, Protecting Student Athletes from Unexpected Tax Liability Act, is a 119th Congress bill sponsored by Rep. Sewell, Terri A. [D-AL-7] (D-AL); status introduced; PRIA reads it as touching household money (as of 2026-09-24).

- Canonical: https://policyrisk.com/legislation/119-hr-10236
- As of: 2026-09-24
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-10236
- Congress: 119
- Title: Protecting Student Athletes from Unexpected Tax Liability Act
- Status: introduced
- Introduced: 2026-09-02
- Sponsor: Rep. Sewell, Terri A. [D-AL-7] (D-AL)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-24

## Summary

**This bill would create automatic tax withholding on name, image, and likeness (NIL) payments to nonemployee college athletes, using a default 30% holdback.** It lets athletes opt out, adds a first-year underpayment penalty waiver, and requires a Treasury report on how the rule works. - Student athletes: Student athletes would face a default 30% withholding on cash NIL payments and 30% of fair market value for noncash deals. They can elect to stop the withholding and first-year athletes may qualify for a waiver of certain underpayment penalties. - Payors and schools: Brands, schools, or other payors would be required to withhold 30% as if the payment were wages for withholding purposes. The withholding rule would not change whether an athlete is legally an employee. - Oversight and review: The Treasury Secretary must report to the House Ways and Means Committee and the Senate Finance Committee by Dec 31, 2029 on costs, whether the 30% rate fits most athletes, payor compliance, and other effects.

## Cosponsors (1)

- Rep. Davis, Danny K. [D-IL-7] (D-IL), 2026-09-02T00:00:00.000Z

## Provisions PRIA read

- New 30% withholding for student athletes: mixed, high. This bill would treat any name, image, and likeness (NIL) payment to a student athlete as if it were wages for income tax withholding. It would require payors to withhold 30% of cash NIL payments and 30% of the fair market value of non-cash NIL items on the transfer date. A payee could elect out of…

## Related bills

- 119-hr-6900: American Affordability Act of 2025
- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026
- 119-hr-7973: Momnibus Act
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-3971: Domestic Workers Bill of Rights Act
- 119-hr-5349: TAS Act

## Sources
- [119-hr-10236 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/10236)

## Related
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-3971: Domestic Workers Bill of Rights Act](https://policyrisk.com/legislation/119-hr-3971)
- [119-hr-5349: TAS Act](https://policyrisk.com/legislation/119-hr-5349)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-10236 (as of 2026-09-24).