Let Kids Play Act
- Bill Number
- H.R. 8788
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-13: Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and Education and Workforce, 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
- 2026-07-01T08:08:38Z
AI-Generated Summary
Let Kids Play Act (H.R. 8788)
Purpose
This legislation aims to prevent certain private equity firms, referred to as "vulture investors," from investing in or controlling youth sports organizations and facilities. It seeks to protect youth athletic activities from practices that prioritize profit extraction over the sustainability and accessibility of these programs.
Key Provisions
- Definitions: Establishes terms such as "covered firm" (private equity funds or entities they control), "vulture investor" (firms with a history of harmful practices or multiple insolvencies in acquired entities), "vulture practice" (actions like loading debt onto acquired entities, imposing junk fees, or extracting intellectual property), and "youth sports entity" (any organization involved in athletic activities for those under 18).
- Prohibitions: Makes it unlawful for vulture investors to invest in youth sports entities. It also bans specific practices by covered firms, including serial acquisitions to consolidate control, mandatory use of affiliated services, undisclosed or excessive fees, exclusivity contracts, and claims on data or broadcasting rights.
- Designation Process: Existing investors in youth sports are presumed or automatically designated as vulture investors unless they submit a sworn certification attesting to no prior harmful practices. Prospective investors must certify before proceeding. False certifications carry civil penalties of at least $1 million and potential criminal liability.
- Divestiture and Remedies: Requires designated vulture investors to sell off stakes in youth sports entities within two years, return assets and intellectual property, and remove installed managers. The Federal Trade Commission (FTC) and Department of Justice (DOJ) may impose additional remedies like disgorging profits, refunding fees, and voiding debts.
- Enforcement: Grants authority to the FTC and DOJ for civil actions, with state attorneys general able to sue on behalf of residents. Creates a private right of action for affected individuals, allowing treble damages, attorney fees, and equitable relief. Pre-dispute arbitration agreements and class action waivers are invalidated.
- Additional Measures: Establishes a Youth Sports Fund for disgorged funds to support community access. Includes joint and several liability for vulture investors, anti-evasion rules, and allowance for stronger state laws.
Significant Changes to Existing Law
- Introduces a targeted ban on private equity involvement in youth sports, expanding beyond general antitrust rules under the Clayton Act and Federal Trade Commission Act.
- Creates new presumptive designations and certification requirements not present in prior investment regulations.
- Strengthens remedies by mandating divestiture timelines and allowing administrative actions without court proof of violations, while bypassing standard notice-and-comment rulemaking procedures.
- Establishes a private right of action and invalidates arbitration clauses, altering how disputes in this sector are resolved compared to general contract law.
Potential Impacts
- Government Agencies: Expands FTC and DOJ oversight and enforcement roles, requiring new guidance, reviews of divestitures, and monitoring for at least one year post-divestiture. State attorneys general gain additional litigation authority.
- Citizens: May reduce costs for families through bans on junk fees and improved access via the Youth Sports Fund, while protecting against practices that could degrade program quality or lead to closures.
- International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Private equity firms and their affiliates seeking investments in youth sports.
- Youth sports organizations, facilities, leagues, and related technology providers.
- Participants, families, and coaches involved in youth athletics.
- Federal agencies (FTC and DOJ) and state attorneys general.
- Courts handling enforcement actions and divestiture reviews.
Notable Legal, Constitutional, or Political Implications
- Raises potential due process considerations in the automatic designation and divestiture processes, as well as questions about property rights in required asset transfers.
- Politically frames private equity practices as harmful to community activities, emphasizing child protection and local control over sports.
- Legally creates broad enforcement tools, including strict liability for certifications and substance-over-form analysis for transactions, which could influence future regulatory approaches in other sectors.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Deluzio, Christopher R. [D-PA-17]
Cosponsors (11)
Rep. Jayapal, Pramila [D-WA-7], Rep. Craig, Angie [D-MN-2], Rep. Ryan, Patrick [D-NY-18], Rep. Casar, Greg [D-TX-35], Rep. Lee, Summer L. [D-PA-12], Rep. McIver, LaMonica [D-NJ-10], Rep. Salinas, Andrea [D-OR-6], Rep. Hoyle, Val T. [D-OR-4], Rep. Mannion, John W. [D-NY-22], Rep. Tlaib, Rashida [D-MI-12], Rep. Levin, Mike [D-CA-49]
Recent Actions
- 2026-05-13: Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and Education and Workforce, 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.
- 2026-05-13: Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and Education and Workforce, 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.
- 2026-05-13: Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and Education and Workforce, 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.
- 2026-05-13: Introduced in House
- 2026-05-13: Introduced in House
Bill Versions
- Let Kids Play Act — issued 2026-05-13 — PDF (30 pages)