No Foreign NIL Funds Act

Summary#

This bill, called the No Foreign NIL Funds Act, would stop foreign countries and organizations tied to foreign countries from giving money or other benefits connected to name, image, and likeness (NIL) deals for college student athletes. It would require any covered entity that is asked by a foreign national or foreign entity about an NIL deal to report that solicitation to the Attorney General and the Secretary of Education.

The Attorney General, working with the Secretary of Education, would investigate suspected violations by colleges and universities. If an institution is found in violation, the agency would notify the school and the school could appeal. The bill would add rules to the Higher Education Act so that institutions must certify they have policies that: (1) suspend student athletes who accept prohibited foreign NIL benefits for one year, (2) tell incoming and current athletes about the rule, and (3) notify student athletes each year about the rule. Institutions found in violation could lose eligibility for federal higher education programs until they report compliance and divest prohibited funds.

The bill also bars colleges, athletic conferences, media rights distributors, and bowl or post-season organizations from entering or keeping contracts, sponsorships, naming rights, or media-rights deals that involve direct or indirect financing, ownership, or material participation by a foreign country. Those entities would have to disclose annually to the Treasury (working with the Committee on Foreign Investment in the United States) and the Secretary of Education any foreign entities that provide financial consideration for covered athletics revenue activities. The bill uses penalties under the International Emergency Economic Powers Act for violations. The bill defines key terms and lists foreign countries that are not covered (NATO members, Australia, New Zealand, and Ireland).

What it means for you#

  • Student athletes: You could not accept money or in-kind benefits from a foreign national or an entity tied to a foreign country for NIL deals. A school policy could bar you from competition for one year if you violate this rule.
  • Colleges and universities: You must track and report solicitations from foreign sources, enforce athlete suspensions for violations, notify athletes about the rules, and may risk losing federal higher education program eligibility if found in violation.
  • Boosters, collectives, agents, and other groups that manage NIL funds: You would be treated as "covered entities" and could not receive or manage foreign-funded NIL contributions. You must document and report solicitations from foreign sources.
  • Athletic conferences, media rights distributors, and bowl organizations: You may not enter into or keep contracts or partnerships that involve financing, ownership, or material participation by a foreign country. You must make annual disclosures to federal agencies about such foreign involvement.

Expenses#

No publicly available information on projected costs to the federal government, institutions, or other entities is provided in the bill text or metadata.

Proponents' View#

No publicly available information about supporters' stated views or arguments is included in the bill text or metadata.

Opponents' View#

No publicly available information about opponents' stated views or arguments is included in the bill text or metadata.