What does Preamble of S 3378 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to establish name, image, and likeness investment accounts for student-athletes, and for other purposes,' aims to amend the Internal Revenue Code of 1986. The bill's stated purpose is to establish name, image, and likeness investment accounts for student-athletes.

What does SHORT TITLE. of S 3378 do?

This bill is formally titled the Helping Undergraduate Students Thrive with Long-Term Earnings Act.

What does NIL INVESTMENT ACCOUNTS. of S 3378 do?

This section amends the Internal Revenue Code to establish 'NIL Investment Accounts,' which are exempt from taxation under this subtitle. An 'NIL investment account' is a trust created to receive contributions of 'qualified NIL income' and provide distributions to the 'designated beneficiary,' an 'eligible athlete.' An 'eligible athlete' is an individual enrolled at a 'participating institution of higher education' who participates in an amateur or collegiate athletic program. Participating institutions of higher education must elect to participate and comply with requirements, with revocation possible after a 12-month notice period. Contributions to an NIL investment account are limited to an amount not exceeding the dollar amount determined under section 2503(b). Eligible athletes may elect to have gross income not include qualified NIL income contributed to the account. The Secretary has authority to define criteria for eligible athletes, establish verification procedures, and issue guidance. Trustees must be banks or demonstrate consistent administration with the section's requirements, and assets cannot be invested in life insurance contracts.

What does STUDENT ATHLETE SPORTS AGENT REFORM. of S 3378 do?

This section amends the Sports Agent Responsibility and Trust Act (15 U.S.C. 7801 et seq.) to reform regulations surrounding student-athlete representation. The amendments define new terms including 'athletic association,' 'athletic department,' 'college athletic competition,' 'conference,' 'institution,' and 'varsity intercollegiate sport.' The legislation adds prohibitions for athlete agents, including representing a student athlete for an endorsement contract without an agency contract or state registration, charging excessive fees, and misrepresenting opportunities to influence enrollment decisions. Prospective athlete agents must register with a State prior to representing a student athlete for an endorsement contract. Athlete agents must certify to athletic associations that they are registered with a State. Athletic associations are required to maintain a publicly available searchable database of registered athlete agents.

What does PRIVATE RIGHT OF ACTION. of S 3378 do?

This section amends the Sports Agent Responsibility and Trust Act to create a private right of action for student athletes. Student athletes alleging violations of the Act by athlete agents (excluding violations of section 6(a)) may bring a civil action in federal or state court. If a student athlete prevails in a civil action, the court may award actual damages, reasonable attorney's fees and litigation costs, and injunctive relief. Pre-dispute arbitration agreements and pre-dispute joint action waivers are invalid and unenforceable against student athletes regarding disputes under this Act. A court, not an arbitrator, will determine the applicability of this provision. The Sports Agent Responsibility and Trust Act's table of contents is amended to reflect the addition of Section 5A.

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HUSTLE Act — S. 3378

Last updated: 12/4/2025 · Introduced: 12/4/2025

Author: Marsha Blackburn (R-TN)

TL;DR (AI)

This bill establishes 'NIL Investment Accounts' for student-athletes, allowing them to receive and manage income from name, image, and likeness (NIL) activities tax-free.
The bill reforms regulations surrounding student-athlete representation by prohibiting certain agent practices, requiring agent registration, and establishing a publicly available database of registered agents.
It creates a private right of action for student-athletes to sue agents who violate the Act, allowing them to recover damages and legal fees, while invalidating pre-dispute arbitration agreements related to these disputes.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 3 more.

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