Senators Marsha Blackburn and Maria Cantwell have introduced the Helping Undergraduate Students Thrive with Long-Term Earnings (HUSTLE) Act. This bipartisan bill aims to give college athletes real tools and protections for handling their Name, Image, and Likeness (NIL) earnings.
The HUSTLE Act focuses on empowering athletes. It lets them invest their earnings in tax-advantaged accounts, pushes for better financial literacy, and sets out rules to stop exploitation by shady agents.
Understanding the HUSTLE Act
The HUSTLE Act is a notable step for college athletes now making money from their NIL. With billions flowing in, it’s more important than ever to help athletes protect their financial futures.
Senator John Cornyn has also signed on as a co-sponsor. The bill lays out several ways to help athletes get smarter about money and feel more secure.
Key Provisions of the HUSTLE Act
Here’s what the HUSTLE Act brings to the table for college athletes:
- Tax-Advantaged Investment Accounts: Athletes can put NIL earnings into accounts that let their money grow without immediate tax hits. That sounds like a win for anyone thinking ahead.
- Financial Education: Trustees must provide financial education, so athletes aren’t left guessing about money management.
- Regulations to Prevent Abuse: Agents have to register with a state, and their fees are capped at 5%. That’s meant to cut down on exploitation.
- Long-Term Savings: Athletes can roll over up to $35,000 of unused NIL account money into an IRA or retirement account once they’ve been out of college sports for a year.
The Importance of Financial Literacy
Financial literacy is at the core of the HUSTLE Act. Many college athletes suddenly earn big money, but it doesn’t always last. Without some know-how, it’s easy to lose track or make mistakes that haunt them later.
Empowering Athletes with Knowledge
The Act requires trustees to teach athletes about money basics, investing, and long-term planning. It’s about giving them a shot at building a stable future, not just a flashy present.
Protecting Athletes from Exploitation
Another big focus: shielding athletes from predatory agents. Since NIL earnings became a thing, some agents have tried to cash in by charging sky-high fees or even grabbing at athletes’ intellectual property rights.
Regulations and Transparency
The HUSTLE Act puts real rules in place. Agents must register with a state, and their fees can’t go above 5%. There’s also a ban on deceptive practices.
National governing bodies have to keep an online registry of certified athlete agents. That way, athletes and their families can actually check who they’re dealing with before signing anything.
Support and Endorsements
The HUSTLE Act has picked up backing from across the sports world. SEC Commissioner Greg Sankey called out its practical approach to NIL investment accounts and financial education.
The bill’s got bipartisan momentum. Senator Blackburn says it’s about helping students protect their future, invest wisely, and avoid being taken advantage of. Senator Cantwell hopes it will shield athletes from dishonest agents and help them save for the long haul.
Conclusion
The HUSTLE Act’s introduction is a pretty big step for college athletes. It’s meant to help them handle all the twists and turns of NIL earnings.
It offers tax-friendly investment options and pushes for better financial literacy. There’s also a focus on putting up guardrails to stop exploitation—something that’s long overdue, honestly.
If you want to dig deeper, check out the full article on Fox News here.
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