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Bill

HR 7403

No Foreign NIL Funds Act

119th Congress Introduced by Jim Baird and 2 co-sponsors

Prevents foreign entities from funding or influencing NIL deals for U.S. student-athletes and requires HEI compliance, disclosures, and potential penalties to deter foreign involve

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 7403

Summary of Bill HR 7403 (119th Congress) – No Foreign NIL Funds Act

Purpose and intent

  • The No Foreign NIL Funds Act aims to prevent foreign entities from providing compensation or support related to name, image, and likeness (NIL) agreements for U.S. college student-athletes.
  • It also imposes disclosure and compliance requirements on higher education institutions and related sports entities to ensure foreign involvement is curtailed in NIL activities.

Key provisions and changes

Section 2: Foreign investment in NIL agreements

  • Prohibited compensation: Any national or foreign entity is barred from providing, directly or indirectly (monetary or in-kind), a benefit to a covered entity in relation to a NIL agreement.
  • Transparency requirement: Covered entities solicited by a foreign-backed entity must document such solicitation attempts with the Attorney General and the Secretary of Education.
  • Investigative authority: The Attorney General, in coordination with the Secretary of Education, can investigate suspected violations by institutions of higher education. If violations are found, the AG must notify the institution within 30 days and the institution may appeal to the Office of Hearings and Appeals (OHA) of the Department of Education.

Section 2 (continued): Program participation agreement (Higher Education Act amendment)

  • Adds a new requirement to the HEA Title IV program participation agreement (section 487(a)):
    • Institutions must certify compliance with the No Foreign NIL Funds Act.
    • Institutions must maintain a policy that:
    • (i) Prohibits participating student-athletes who violate the Act for a 1-year period.
    • (ii) Notifies incoming student-athletes of the Act and prohibitions.
    • (iii) Provides annual notice to student-athletes about the Act and prohibitions.
    • Institutions found in violation may become ineligible for certain programs and must, to regain eligibility, report compliance and divest from any prohibited funds.

Section 2 (continued): Penalties for covered entities

  • Violations by a covered entity are subject to penalties under the sanctions framework of the International Emergency Economic Powers Act (IEEPA), matching penalties that apply to other unlawful acts under that act.

Section 3: State-controlled investments in collegiate athletics revenue streams

  • Prohibition on foreign-state involvement: No institution, athletic conference, media rights distributor, bowl/post-season football organization, etc., may enter into or maintain contracts or arrangements that involve direct or indirect financing, ownership, or material participation by a foreign country, nor engage in covered activities with a foreign country.
  • Disclosure: Affected parties must annually disclose all contracts and ownership information for foreign entities providing financial consideration for covered activities to the Secretary of the Treasury (in coordination with the Committee on Foreign Investment in the United States) and the Secretary of Education.
  • Civil penalties: Violations face penalties under IEEPA section 206(b).

Definitions (Section 4)

  • Covered activities: Includes NIL-related revenue activities in intercollegiate athletics, such as naming rights, media rights, sponsorships, joint ventures, and any amateur competitions related to NCAA Division I programs.
  • Covered entity: Institutions of higher education, student-athletes, or entities (collective groups, boosters, agents, etc.) that solicit or manage funds for NIL opportunities for student-athletes.
  • Entity of a foreign country: A foreign-controlled entity not organized under U.S. law and without a U.S. principal place of business.
  • Foreign country: Excludes NATO members, Australia, New Zealand, and Ireland.
  • Other standard definitions: Athletic conference, bowl/post-season organization, media rights distributor, student-athlete, varsity sports team, institution of higher education, etc.

Who is affected

  • Higher education institutions and their athletic departments.
  • Student-athletes participating in NIL activities.
  • Athletic conferences, media rights distributors, bowl/post-season organizations, and related entities involved in college athletics revenue streams.
  • Foreign-country entities involved in NIL financing or related contracts.

Procedural and timeline aspects

  • The bill was introduced February 5, 2026, and referred to the House Education and Workforce Committee and the House Foreign Affairs Committee.
  • Investigative and enforcement steps involve the Attorney General, the Secretary of Education, and potential escalation to the Department of Education’s Office of Hearings and Appeals.
  • Certification and annual notice requirements are tied to program participation in federal higher education funding programs, with potential ineligibility pending compliance and divestment.
  • Disclosures to Treasury/CFIUS coordination are annual.

This summary provides the bill’s core aims, major obligations, and who would be impacted. If you want, I can compare these provisions to existing NIL policy or IEEPA penalties for context.

Compiled from official sources — confirm details with the bill’s official record.

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