The HUSTLE Act creates tax-advantaged "NIL investment accounts" that allow college and amateur athletes to set aside earnings from endorsements, social media, and other uses of their name, image, and likeness, with contributions excluded from income and self-employment taxes. Once athletes graduate or transfer to non-participating schools, they can withdraw funds at favorable long-term capital gains tax rates or convert up to $35,000 annually into retirement accounts, while early withdrawals face ordinary income tax and a 10% penalty unless used for qualified expenses like education or career training. The bill also overhauls sports agent regulations by requiring agents to register with states, capping endorsement fees at 5%, prohibiting false NIL promises, and allowing athletes to sue agents for violations in court rather than through forced arbitration. The legislation applies to eligible athletes at participating colleges and includes mandatory financial education requirements to help athletes manage their NIL earnings responsibly.
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