HUSTLE Act
Sponsored By: Representative Steube, W. Gregory [R-FL-17]
Introduced
Summary
Creates tax-favored NIL investment accounts for student-athletes so they can funnel name, image, and likeness earnings into a trust with special tax rules and limits. The new Part X of the tax code defines who qualifies, what counts as qualified NIL income, how trustees must operate, and when money can move to retirement accounts.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
New NIL accounts for student-athletes
If enacted, eligible student-athletes would be able to open a new U.S. trust called an NIL investment account. Accounts would accept only cash NIL earnings and must be run by a bank or an approved trustee. Trustees could not buy life insurance for the account and must give educational materials at opening and each year. Colleges could choose to participate and could only stop participation after giving at least 12 months' notice. These rules would apply for tax years beginning after December 31, 2025.
Taxes on NIL withdrawals and rollovers
If enacted, distributions from an NIL account would be taxed when paid. Withdrawals before you graduate or before you transfer to a non-participating school would be taxed as ordinary income. Withdrawals on or after graduation or certain transfers could get long-term capital gains treatment up to the annual capital-gains limit; amounts above that limit would be ordinary income. Many nonqualified withdrawals would face an extra 10% tax, but distributions after death, for disability, for defined qualified expenses, or for permitted rollovers would avoid that 10% tax. You could avoid treating a payment as a taxable distribution by rolling it into another NIL account within 60 days or by changing the beneficiary to an eligible family member, subject to a 12-month transfer limit and other rules.
Move NIL money into IRAs
If enacted, someone who stopped being an eligible athlete at least one year could convert some or all of an NIL account into an IRA, Roth IRA, or another Treasury-approved retirement account. Conversions would be treated as rollovers. In any taxable year, the amount you could convert could not exceed $35,000 minus any prior conversions you already made under this rule.
Exclude NIL earnings now, with limits
If enacted, an eligible athlete could elect to exclude qualified NIL income contributed to an NIL account from gross income in the year contributed. Money contributed and excluded would not count as self-employment earnings for that contribution year, but taxable withdrawals later would count for self-employment tax when paid. Yearly contributions would be limited to the yearly gift-tax exclusion amount, and no contributions would be allowed after your fifth taxable year in which you both earned NIL income and were enrolled at a participating school. If you make an excess contribution, you could avoid the 10% extra tax by returning the excess and its net income by your tax return due date (including extensions).
Sponsors & CoSponsors
Sponsor
Steube, W. Gregory [R-FL-17]
FL • R
Cosponsors
Rep. Boyle, Brendan F. [D-PA-2]
PA • D
Sponsored 6/30/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov