HUSTLE Act

The HUSTLE Act creates tax-advantaged investment accounts for student athletes to save income from name, image, and likeness (NIL) deals. Eligible student athletes at participating colleges can contribute NIL earnings (like endorsements and social media content) to these accounts, which are tax-exempt for the athlete. Distributions before graduation are taxed as ordinary income, but distributions after graduation or transfer qualify for lower long-term capital gains tax rates. The accounts have annual contribution limits based on the gift tax exclusion and require management by banks or approved entities. The bill also includes new rules for sports agents, such as a 5% fee cap on endorsement contracts and registration requirements.