Lawmakers in Washington have introduced new bipartisan legislation aimed at helping college athletes manage and save the money they earn from their personal brands. U.S. Representatives Greg Steube (R-Fla.) and Brendan Boyle (D-Pa.) filed the Helping Undergraduate Students Thrive with Long-Term Earnings (HUSTLE) Act in the House, while Senators Marsha Blackburn (R-Tenn.) and Maria Cantwell (D-Wash.) are leading the companion bill in the Senate.
The bill would amend the Internal Revenue Code to create tax-exempt NIL investment accounts. Under the program, student-athletes can contribute cash from endorsements, appearances, and social media deals into these accounts, excluding those amounts from their taxable income up to the annual gift-tax limit.
Once they graduate, the money can be withdrawn and taxed at long-term capital gains rates rather than higher ordinary income rates. Alternatively, athletes can roll over up to $35,000 of unused funds into an IRA or Roth retirement account after being out of collegiate sports for at least one year.
“College athletes in Florida and across the country are generating real income from their NIL rights, many for the first time in their lives, but earning income and knowing how to make it last are two very different things,” Rep. Greg Steube said. “The HUSTLE Act gives student-athletes a real pathway to invest those earnings, plan for life after athletics, and build long-term financial stability. This is about making sure the opportunity they worked for actually follows them beyond the field or court.”
The shift comes as NIL earnings explode across the collegiate sports landscape following a 2021 Supreme Court ruling that affirmed student-athletes’ rights to profit from their brand. According to background data provided with the bill, NIL deals generated more than $1.2 billion during the 2023-2024 academic year, and projections show that figure topping $2.5 billion by the 2025-2026 cycle as school revenue sharing begins.
Despite the massive influx of money, financial literacy remains a significant hurdle for young players. A 2022 NCAA survey of over 9,800 athletes revealed that 49% wanted educational resources regarding taxes and financial literacy, while only 9% had ever met with a financial counselor.
To address this gap, the HUSTLE Act mandates that account trustees provide athletes with annual educational materials on basic investing, financial planning, and long-term security. The bill also builds in flexibility, allowing students to withdraw funds before graduation without penalty if the money is used for career transition costs—such as professional training, certification, or moving expenses—higher education expenses, or qualified medical bills that exceed 7.5% of their adjusted gross income.
Rep. Brendan Boyle emphasized the need for federal rules to evolve alongside the sport. “The NIL era has changed college sports, and federal law needs to catch up. With college athletes now earning over $1 billion every year, more must be done to ensure they are set up for future success,” Boyle said. “This bipartisan legislation will enable athletes to save for their futures if they so choose and prevent dishonest agents from cheating student-athletes out of their hard-earned money.”
Senator Marsha Blackburn added that the bill empowers students to safeguard their earnings. “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,” Blackburn said. “The HUSTLE Act would allow college athletes to invest their earnings in a tax-advantaged account that grows over time and strengthens financial education.”
The legislation has picked up support from major athletic organizations and university administrators. Tim Buckley, Senior Vice President of External Affairs at the NCAA, noted that student-athletes will receive roughly $1 billion in direct financial benefits from universities this year alongside scholarship guarantees and mental health support. “The NCAA fully supports providing athletes with more resources to achieve long term financial success,” Buckley said.
Southeastern Conference (SEC) Commissioner Greg Sankey praised the bipartisan effort to build national standards. “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,” Sankey said. “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.”
University athletic departments in Florida also backed the measure, focusing on their institutional roles in player development. Michael Alford, Vice President and Director of Athletics at Florida State University, stated that the bill aligns with their mission to develop graduates prepared to thrive after their playing careers end. “We appreciate Representative Steube’s leadership on the HUSTLE Act and support legislation that encourages financial education, promotes responsible stewardship of NIL earnings, and creates opportunities for student-athletes to build lasting financial security,” Alford said.
Meanwhile, the University of Florida Athletic Association issued a statement highlighting how the act addresses the shifting landscape.
“We support the HUSTLE Act and appreciate Representative Steube’s leadership in advancing legislation that promotes transparency, establishes greater accountability for sports agents and encourages student-athletes to build long-term financial security through saving and investing,” Florida Athletics stated. “These are important steps that can help position student-athletes for success both during their collegiate careers and well into the future.”
If passed, the amendments to the Internal Revenue Code would apply to taxable years starting after December 31, 2025. The U.S. Department of the Treasury would be tasked with issuing specific rules to track contributions, verify income sources, and prevent fraud.
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