HUSTLE Act
Sponsored By: Senator Blackburn, Marsha [R-TN]
Introduced
Summary
Tax-favored NIL (name, image, and likeness) investment accounts would let student athletes save and invest endorsement income, and the bill would also tighten rules on athlete agents.
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- Families and student athletes: Student athletes could place qualified NIL income into U.S. trust accounts that are largely tax-favored. Contributions are limited by timing and the annual gift-tax cap, withdrawals before graduation are taxed as ordinary income, and withdrawals after graduation get limited long-term capital gains treatment.
- Agents and athletic associations: Athlete agents would need State registration and must certify that registration to athletic associations, which must keep a public searchable registry. Endorsement-agent fees would be capped at 5% and athletes would gain a private right to sue for violations while pre-dispute arbitration and joint-action waivers would be invalid for those claims.
- Institutions, trustees, and tax rules: Accounts must be U.S. trusts administered by banks or qualified practitioners and are generally exempt from federal income tax while still subject to unrelated business income tax where applicable. The bill allows rollovers to IRA-style retirement accounts after at least one year out of eligible athlete status and limits lifetime conversions to $35,000 above prior conversions.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Tax‑favored NIL accounts for athletes
If enacted, the bill would create special trust accounts for college athletes to hold qualified NIL income. You would generally be able to exclude contributed NIL cash from your federal income if you elect that exclusion. Annual contributions could not exceed the dollar amount in Internal Revenue Code section 2503(b) for the calendar year, and contributions would be barred after the fifth taxable year in which you both received NIL income and were enrolled at a participating school. Withdrawals before you graduate or transfer would be taxed as ordinary income. Withdrawals on or after graduation or after transfer to a non-participating school would get long‑term capital gains treatment, but that preference would be limited to the annual amount described in section 1(h)(1)(B)(i) for individuals described in section 1(c). The accounts would be U.S. trusts with bank or approved trustees, could not buy life insurance, could use 60‑day rollovers with a 12‑month rollovers limit, and participating schools or account admins would have to give initial and yearly financial education. The rules would apply for taxable years beginning after December 31, 2025.
Agent fee limits and athlete rights
If enacted, the bill would bar certain agent practices and give students new legal remedies. Agents could not charge more than 5 percent of the value of an endorsement contract. Agents would have to sign an agency contract and be registered before representing a student for endorsements, and they could not use false promises to recruit or induce transfers. Pre‑dispute arbitration clauses and joint‑action waivers would be unenforceable for disputes under this Act, and current or former student athletes could sue agents in court for actual damages, lawyer fees, and injunctive relief (with some exclusions). Courts, not arbitrators, would decide whether arbitration applies.
State registration for athlete agents
If enacted, the bill would require athlete agents to be registered with a State before they represent a student athlete for an endorsement. You would be treated as registered if you are already a pro sports agent in good standing or certified under the All State Uniform Athlete Agent Acts. Agents would have to certify their registration to the athletic association they deal with. Athletic associations would have to keep a public, searchable registry of registered agents and provide a working link to the Commission website.
Sponsors & CoSponsors
Sponsor
Blackburn, Marsha [R-TN]
TN • R
Cosponsors
Sen. Cantwell, Maria [D-WA]
WA • D
Sponsored 12/4/2025
Sen. Cornyn, John [R-TX]
TX • R
Sponsored 12/9/2025
Sen. Coons, Christopher A. [D-DE]
DE • D
Sponsored 3/9/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov