Bills · S 3378
IN COMMITTEE· 119TH CONGRESS
Senate BillS 3378Taxation
HUSTLE Act
INTRO DEC 4· LAST ACTION DEC 4
READING
21MIN
COSPONSORS
4BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a relatively new financial reality for college athletes: the ability to earn money from their name, image, and likeness. Currently, these earnings are taxed as regular income, potentially creating a significant immediate tax burden for young individuals who may not have extensive experience managing finances. By allowing athletes to defer taxes on their NIL earnings until later, the bill could encourage long-term savings and financial planning.
If this bill becomes law, student-athletes could manage their earnings more effectively, potentially reducing their overall tax liability and building a nest egg for their future education or professional careers. If it doesn't become law, student-athletes would continue to pay taxes on their NIL income in the year it's earned, potentially leaving them with less to save or invest for their future.
KEY PROVISIONS
4AI-extractedPROVISION 01
Establishes 'NIL Investment Accounts' as a new type of tax-exempt trust for eligible student-athletes to save their name, image, and likeness (NIL) earnings.
This creates a dedicated financial vehicle for student-athletes to manage their unique income stream with tax advantages.
PROVISION 02
Contributions to these accounts from qualified NIL income are not included in gross income for tax purposes at the time of contribution, and are also excluded from self-employment taxes.
This allows student-athletes to defer paying taxes on their NIL earnings until they withdraw the money, potentially providing significant tax savings.
PROVISION 03
Sets annual contribution limits for these accounts and stops accepting contributions after an athlete's fifth taxable year of earning NIL income and being enrolled in a participating institution.
This ensures the accounts are used as intended for college athletes during their eligible period and prevents unlimited contributions.
PROVISION 04
Specifies that distributions from these accounts are included in gross income, and if withdrawn before graduating from a participating institution or transferring to a non-participating one, they are taxed as ordinary income.
This encourages student-athletes to keep funds in the account until after their collegiate career, aligning the tax benefits with long-term savings goals.
SPONSORSHIP
1 + 4
R· Tennessee
YRS IN OFFICE
23
BILLS LED
142
COSPONSOR BREAKDOWNBIPARTISAN · 50%
DEM 3 REP 1 IND 0
ACTION TIMELINE
2 EVENTSDEC 4
Introduced in Senate
DEC 4
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 3378
Congress119th
StatusIn Committee
IntroducedDec 4, 2025
Last actionDec 4, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED DEC 4, 2025
Senate BillS 3378Taxation
HUSTLE Act
INTRODUCED DEC 4, 2025· LAST ACTION DEC 4, 2025
PASSAGE CHANCES
—%
READING
21 min
COSPONSORS
4
COMPLEXITY
Moderate
