Since 2021, the rules of college sports have been rewritten. Student-athletes can now earn money through NIL (Name, Image, and Likeness) deals. However, because there is no single “national law,” the rules change every time you cross a state line.

Right now, Congress is debating several federal NIL bills. If passed, these would create one set of rules for the entire country. While no federal law has been passed yet, these proposals could completely change student-athlete contracts, their ability to switch schools, and who has the power to take away that eligibility.

First, Who Is the NCAA?

If you are new to the world of college sports, you will hear this name constantly. The NCAA (National Collegiate Athletic Association) is the organization that has governed almost all college sports for over 100 years.

Think of them as the “League Office” for over 1,100 schools. They make the rules for how games are played, who is allowed to play, and, for a long time, they got to decide who was allowed to get paid as well. For a century, the NCAA had a strict “no pay” rule to keep student-athletes as “amateurs.” After losing several major court cases, they were forced to change those rules, leading to the NIL era we are in today.

Federal NIL Legislation Is Coming, But Not Here Yet

Currently, we are operating on a “patchwork” system. A student-athlete in Florida might follow different legal rules than one in California. To fix this, schools and conferences are putting pressure on the government to create a national standard.

For now, your NIL agreements are still governed by the current mix of state laws, NCAA bylaws, and the College Sports Commission (CSC). Because the laws haven’t changed or standardized, your current legal risks, like being sued for a contract dispute or losing your eligibility, are very real. It is essential to work with an NIL contract lawyer for student-athletes to ensure your current deals are safe.

Why Congress Is Getting Involved

The U.S. government is stepping in for four main reasons:

  1. Inconsistent Rules: It is hard for the NCAA to enforce rules when every state has a different law.
  2. Recruiting Advantages: Some states have laws that make it “easier” for their schools to pay athletes, which others feel is unfair.
  1. Enforcement Confusion: Schools are caught between following state laws and following the new House v. NCAA settlement rules.
  2. The “Employee” Question: Congress wants to decide if student-athletes should be legally called “employees” of their schools.

Key Federal NIL Bills to Watch

There are three major pieces of legislation currently being debated. Each one treats athletes differently.

1. The SCORE Act

This bill is often seen as “pro-school.” It would create a national framework but also give the NCAA antitrust exemption. This is a legal shield that would allow the NCAA to make rules (like transfer restrictions) without being sued for being a “monopoly.” It also states that athletes are not employees.

2. The SAFE Act

This proposal is more “athlete-friendly.” It focuses on protecting student rights, such as guaranteeing health insurance for five years after you stop playing and ensuring scholarships last for 10 years.

3. The College Athletics Reform Act (CARA)

CARA focuses on the middle ground. It aims to balance the need for regulation with the need for student-athlete rights, specifically looking at how “collectives” (groups of donors who pay athletes) are allowed to operate.

What These Proposals Could Change

If one of these bills becomes law, the “patchwork” system will officially end. Here is what could change for you:

  • No More State Secrets: You won’t have to worry about the rules changing when you move to a different state.
  • More NCAA Power: Some bills would give the NCAA more power to investigate your bank accounts and your family’s involvement in deals.
  • Collective Regulation: The groups that pay you would have to follow strict transparency rules.
  • Dispute Resolution: Your contract disputes might be decided by a national federal framework instead of a local court.

How Federal NIL Laws Could Affect Eligibility

Eligibility is your “license to play.” Federal laws could change who has the power to pull that license. If the SCORE Act passes, the NCAA’s authority to investigate you would increase. If the SAFE Act passes, you might have more power to sue the NCAA or an agent if they treat you unfairly.

What This Means for Your Contracts Today

It is important to remember that these federal laws have not been passed yet. You are still legally bound by the contracts you sign today. Many current deals include ‘transfer restrictions’ or ‘financial penalties’ that new laws might eventually ban; however, until that happens, your current contracts remain fully enforceable.

Before you sign anything, you must review your NIL agreement with a professional. You cannot assume a future law will “save” you from a bad contract you sign today.

NIL Legislation and the Transfer Portal

The Transfer Portal is a major target for federal law. Congress is looking at:

  • Exit Fees: Should schools be allowed to charge you money to leave?
  • Recruiting Inducements: Should a school be allowed to “promise” you a deal before you sign with them?
  • The “Wait” Period: Should you have to sit out a year if you transfer twice?

What Student-Athletes Should Do Right Now

  • Follow current rules: Report every deal over $600 to NIL Go within five days.
  • Structure carefully: Ensure your contract lists real work (like social media posts) so it isn’t flagged as “pay-for-play.”
  • Avoid verbal deals: If it isn’t in a written contract, it doesn’t exist under the law.
  • Get a professional review: Don’t let the excitement of a big offer lead to a life-long legal mistake.

Do Not Wait for Federal Law to Protect You

This is a mistake. Federal legislation can take years to pass, but a lawsuit or an eligibility ban can happen in a week. You are facing real-world risks right now because your current contract is an active legal document, not a placeholder for future rules. If you are facing a contract issue, you need an NIL dispute lawyer immediately.

Final Takeaway: Rules Are Changing, But Risk Is Constant

The world of NIL is moving toward a national standard, but we aren’t there yet. Until Congress acts, you are operating in a complex environment where the NCAA and the College Sports Commission are the primary “judges.”

Questions About NIL Rules, Contracts, or Eligibility?

At K Altman Law, we represent student-athletes in NIL contract review, disputes, compliance, and NCAA eligibility matters. We make sure you can focus on the game while we focus on the law.