Bill · H.R. 10236· House(119-HR-10236)
Protecting Student Athletes from Unexpected Tax Liability Act
- Introduced
- 9/2/2026
- Last activity
- 9/2/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Terri Sewell
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill is called the Protecting Student Athletes from Unexpected Tax Liability Act. It requires income tax withholding at the source for name, image, and likeness payments made to student athletes who are independent contractors. Under the bill, name, image, and likeness payments will be treated like wage payments with a withholding rate of 30 percent in cash or fair market value for non-cash remuneration. Student athletes can choose to opt-out of this withholding requirement. The bill also waives underpayment penalties for new student athletes for one taxable year and requires an IRS report on the effects of the withholding by December 31, 2029.
Yes· 3 of 4
Would students be better off under this?+6
Student athletes gain financial predictability by avoiding large, unexpected year-end tax obligations.
Does this make college cost less?+5
The bill helps students avoid unexpected tax liabilities and penalties through systematic withholding.
Would people in their twenties and thirties be better off under this?+4
Young adult student-athletes benefit from reduced risk of unexpected tax bills through withholding.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2(b) waives underpayment penalties for new student athletes. This is positive because it protects students from getting penalized by the tax system for underpayment in their first year.
-
Section 2(a), through paragraph (6), allows a student athlete to elect to have the withholding rule not apply to them. This is positive because it gives individuals the personal choice to opt out of the automatic withholding if it does not fit their needs.
-
Section 3 requires the Secretary to report to congressional committees on the costs, benefits, and accuracy of the 30 percent withholding rate by December 31, 2029. This is positive because it holds the government accountable for studying whether this tax rule is actually helping student athletes.
Potential Negative Impacts for People
- Section 2(a), through paragraph (2), sets a mandatory 30 percent withholding amount for cash and non-cash name, image, and likeness payments. This could be considered a negative burden because 30 percent might be much higher than what some student athletes actually owe, reducing their immediate take-home pay from these deals.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+6Good For Young Adults+4
- Education And Technology
- Improves College Affordability+5
- Governance And Ideology
- Increases Federal Power+3
- 9/2/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Danny DavisDemocrat · Illinois