Sponsors (2)
The bill clarifies tax treatment and creates dedicated NIL accounts to help student-athletes manage earnings, but it shifts costs into greater paperwork for individual taxpayers and extra administrative work for the IRS and financial institutions.
Student-athletes and other taxpayers receiving NIL income can use dedicated NIL investment accounts and clearer tax rules to shelter or better manage name/image/likeness earnings starting in 2026.
The IRS and Treasury gain explicit statutory authority and a framework to administer and regulate NIL-related tax treatment, reducing legal ambiguity for enforcement and guidance.
Taxpayers receiving NIL income (especially student-athletes) will likely face increased compliance complexity and additional paperwork when filing taxes for NIL accounts, raising filing costs and time burdens.
The IRS and financial institutions will incur extra administrative burden and rulemaking duties to implement, supervise, and service the new NIL account rules, requiring resources and operational changes.
Based on analysis of 2 sections of legislative text.
Adds a new part to the tax code creating "NIL investment accounts" for undergraduates and updates Subchapter F table of parts.
Creates a new tax-code provision that establishes “NIL investment accounts” for undergraduate students and updates the Subchapter F table of parts to include the new part. The change is written into the Internal Revenue Code and takes effect for taxable years beginning after December 31, 2025. The bill's only substantive change is adding a new part to Subchapter F of Chapter 1 of the Internal Revenue Code to create and govern NIL investment accounts; it also sets the short title "Helping Undergraduate Students Thrive with Long-Term Earnings Act (HUSTLE Act)."
Official title: To amend the Internal Revenue Code of 1986 to establish name, image, and likeness investment accounts for student-athletes, and for other purposes.
Introduced June 30, 2026 by W. Greg Steube · Last progress June 30, 2026