No Foreign NIL Funds Act

Bill Number

H.R. 7403

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Sports and Recreation

Status

Introduced

Latest Action

2026-02-05: Referred to the Committee on Education and Workforce, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-04-15T08:06:14Z

AI-Generated Summary

Purpose

The "No Foreign NIL Funds Act" (H.R. 7403) aims to prevent foreign nationals and entities from influencing or funding name, image, and likeness (NIL) agreements for U.S. college student athletes. NIL agreements allow student athletes to earn money from endorsements or promotions using their personal fame. The bill also blocks foreign involvement in revenue-generating activities tied to college athletics, such as media rights or sponsorships, to protect U.S. higher education from undue foreign influence.

Key Provisions

• Prohibition on Foreign Funding for NIL Agreements (Section 2):
• Bans nationals or entities from "foreign countries" (defined as any country except NATO members, Australia, New Zealand, or Ireland) from providing any monetary or in-kind benefits to "covered entities" (e.g., colleges, student athletes, booster groups, or agents managing NIL deals).
• Requires covered entities to report any solicitation attempts to the Attorney General (AG) and Secretary of Education (SecEd).
• Authorizes the AG, in coordination with SecEd, to investigate colleges suspected of violations; institutions receive notice within 30 days and can appeal to the Department of Education's Office of Hearings and Appeals.
• Amends the Higher Education Act of 1965 to make compliance a condition for federal student aid programs; violating institutions face penalties like a one-year ban on student athlete participation, loss of federal funding eligibility, and requirements to divest prohibited funds.
• Violations by covered entities trigger civil and criminal penalties under the International Emergency Economic Powers Act (IEEPA), which can include fines up to $1 million or imprisonment up to 20 years for willful acts.

• Prohibition on Foreign Investments in College Athletics Revenues (Section 3):
• Bars colleges, athletic conferences, media rights holders (e.g., TV networks or streaming services), and post-season bowl organizations from entering or maintaining deals involving foreign financing, ownership, or participation in "covered activities" (e.g., naming rights for stadiums, media broadcasts, sponsorships, or joint ventures in athletic data platforms).
• Mandates annual disclosures of any foreign financial ties to the Secretary of the Treasury (in coordination with the Committee on Foreign Investment in the United States, or CFIUS) and SecEd.
• Violations incur civil penalties under IEEPA, similar to those for economic sanctions breaches.

• Definitions (Section 4):
• Clarifies terms like "entity of a foreign country" (foreign-government-linked organizations not based in the U.S.), "student athlete" (enrolled college varsity team members), and "covered activities" (revenue sources in NCAA Division I sports).

Significant Changes to Existing Law

• Adds a new subsection (30) to Section 487(a) of the Higher Education Act of 1965, requiring colleges to certify NIL compliance as part of agreements for federal student aid programs; non-compliant schools lose eligibility until they prove divestment and adherence.
• Introduces novel restrictions on foreign involvement in NIL deals and athletics revenues, building on but expanding beyond existing laws like IEEPA (which deals with national emergencies and sanctions) by applying its penalties to college sports contexts.
• Creates mandatory reporting and investigation mechanisms not previously specified for NIL or athletics funding, shifting oversight from voluntary guidelines (e.g., NCAA rules) to enforceable federal requirements.

Potential Impacts

• Government Agencies: Increases workload for the Department of Justice (AG-led investigations), Department of Education (appeals and certifications), and Department of the Treasury (disclosures and CFIUS coordination); may require new resources for enforcement and compliance monitoring.
• Citizens: Limits NIL earning opportunities for student athletes by excluding deals from certain foreign sources, potentially reducing income for athletes at U.S. colleges; could indirectly affect tuition affordability if institutions lose federal aid.
• International Relations: May heighten tensions with non-exempt countries (e.g., China or Russia) by restricting their economic engagement with U.S. college sports, signaling U.S. concerns over foreign influence in education and athletics; exempts allies like NATO nations to preserve partnerships.

Main Stakeholders Affected

• Institutions of Higher Education: Must implement policies, notify athletes, and risk losing federal funding for violations.
• Student Athletes: Face bans from sports for NIL violations and limited deal options, but gain protections from foreign solicitations.
• Athletic Organizations: Conferences, media distributors, and bowl groups (e.g., College Football Playoff) cannot pursue foreign-backed revenue deals and must disclose ties.
• Foreign Entities and Nationals: From non-exempt countries, prohibited from NIL funding or athletics investments, potentially blocking market access.
• Government Entities: DOJ, DOE, and Treasury handle enforcement, investigations, and penalties.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on IEEPA's broad penalty framework for enforcement, allowing swift civil fines without new courts; includes an appeals process to ensure due process, but could lead to litigation over what constitutes "indirect" foreign involvement or "solicitation."
• Constitutional: May raise First Amendment concerns if restrictions on NIL deals (as commercial speech) are seen as overly broad, though the focus on foreign influence aligns with national security precedents; equal protection issues could arise if exemptions favor certain countries.
• Political: Addresses national security worries about foreign (especially adversarial) influence in U.S. youth and education sectors, potentially appealing to concerns over economic espionage; could spark debates on balancing athlete rights with protectionism, influencing future sports policy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moore, Blake D. [R-UT-1]

Cosponsors (2)

Rep. Veasey, Marc A. [D-TX-33], Rep. Baird, James R. [R-IN-4]

Recent Actions

• 2026-02-05: Referred to the Committee on Education and Workforce, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-05: Referred to the Committee on Education and Workforce, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-05: Introduced in House
• 2026-02-05: Introduced in House

Bill Versions

• No Foreign NIL Funds Act — issued 2026-02-05 — PDF (10 pages)