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Texas NIL Rules

College and high-school name, image & likeness rules for Texas (TX) — at a glance, in plain English. Not legal advice; confirm with a compliance office before acting.

At a glance

NIL in Texas today.

College NIL: Legal (state law). High-school NIL: Not allowed, per State NIL law (SB 1385 / HB 126) + UIL (HS). NIL collectives: operating. Deal-disclosure threshold: Any deal. Governing statute: Texas SB 1385 (2021), as amended by HB 2804 (2023) and HB 126 (2025) (Tex. Educ. Code § 51.9246), amended, effective July 2021. High-school governance: University Interscholastic League (UIL). Last reviewed August 2026 — this is a plain-English overview pending verification, not legal advice.

What to know

How the rules play out in Texas.

Texas's NIL statute (Tex. Educ. Code §51.9246, originally SB 1385) was substantially amended by HB 126 in 2025, which now lets Texas public universities pay athletes directly and use NIL terms in recruiting, aligning state law with the House settlement's revenue-sharing model; it requires disclosure of NIL contracts to the institution with no dollar floor. The UIL treats ordinary paid NIL deals with outside brands or collectives as a violation of high-school amateur status, though a narrow 2025 exception tied to HB 126 lets 17-and-older prospects sign NIL agreements exclusively with a college program pre-enrollment, with payment gated until the athlete's remaining UIL eligibility is exhausted — confirm the precise payment-timing language directly with the UIL. Collectives (e.g., Texas One Fund) are active and legally permitted at the college level; the practical $600 disclosure trigger that's widely cited comes from the national NIL Go clearinghouse, not a Texas-specific statutory figure.

Who governs NIL in Texas

College NIL in Texas sits in Tex. Educ. Code § 51.9246, created by SB 1385 in 2021 and rewritten twice since, most recently by HB 126 in 2025 to prepare Texas schools for the House settlement era. It covers student athletes at Texas institutions of higher education. High-school athletics are governed by the UIL, whose amateur rule (Section 441 of its Constitution and Contest Rules) still treats most sport-related NIL money as an eligibility problem for enrolled high schoolers as of August 2026.

What § 51.9246 actually says after HB 126

From the enrolled text of HB 126 (89th Legislature, 2025):

  • § 51.9246(c): an institution may not adopt or enforce a policy that prevents a student athlete from earning NIL compensation when not engaged in official team activities, or from obtaining professional representation, including a Texas-licensed attorney.
  • HB 126 struck the old bans on compensation provided by the institution and on institutions providing or soliciting NIL compensation for prospective athletes, clearing the way for direct school pay under the settlement framework.
  • § 51.9246(c-2)-(c-3): institutions and athletes may follow the rules of an athletic association, conference, or final court order, and are then subject to that body's enforcement provisions, an explicit bridge to the House settlement structures.
  • § 51.9246(g)(2)(B)(ii): no deals endorsing alcohol, tobacco or e-cigarettes, anabolic steroids, sports betting, casino gambling, a firearm the athlete cannot legally purchase, or a sexually oriented business.
  • § 51.9246(g)(5): no use of an institution's uniform, trademark, or logo without express permission; § 51.9246(g)(3): the athlete is not an employee of the institution.
  • § 51.9246(k-1): no one, including an institution, may enter an NIL arrangement with a prospective student athlete younger than 17 unless that athlete is already enrolled in an institution of higher education.

High-school rules (UIL)

The UIL amateur rule remains restrictive, and Texas is a no-NIL state for enrolled high schoolers as of August 2026:

  • Section 441(a)(2): a student in grades 9-12 is not an amateur if, within the preceding 12 months, the student received valuable consideration for allowing his or her name to be used in promoting a product, plan or service related to a UIL sport or contest.
  • Section 441(a)(1) and (a)(3): payment for participating in a UIL sponsored school sport, or booster club money for non-school purposes, also forfeits amateur status.
  • Section 441(b)(3): prospective collegiate student-athletes may sign scholarship agreements and other financial agreements, including Name, Image or Likeness agreements, with a postsecondary institution, in accordance with state law.
  • Section 441(c): a student who returns the money within 30 days of being informed of a violation can regain eligibility; otherwise the student is ineligible in that sport for one year.

The practical read

A Texas college athlete can take brand deals, sell autographs, and hire an agent or lawyer, with deals of 600 dollars or more reviewed through the NIL Go clearinghouse; the school itself can now also pay athletes under the settlement's revenue-sharing cap. A Texas high schooler competing under UIL rules generally cannot monetize NIL tied to their sport while remaining eligible; the statute's age-17 carve-out and the UIL exception are aimed at college-bound recruits signing institutional deals that pay out later, not at in-season endorsement money.

What's moving

HB 126 passed in May 2025; its enrolled text provides an effective date of September 1, 2025 unless it received the two-thirds vote for immediate effect. It is Texas's alignment bill for the House settlement, which as of August 2026 has schools paying athletes directly under an approximately 20.5 million dollar first-year cap while third-party deals of 600 dollars or more clear NIL Go. Watch for UIL rule proposals: reporting in 2025 described a narrow allowance for athletes 17 or older to sign (but not be paid on) deals before enrolling in college, and the college-bound exception in Section 441(b)(3) reflects that shift.

Go deeper

Compare states, then run your numbers.

Compare Texas with every other state in the NIL Rules by State tracker, estimate your take-home on NIL income with the free NIL Tax Calculator, and see what your name, image, and likeness is actually worth with HDBND's free athlete tools.

Frequently asked questions

Is college NIL legal in Texas?
Yes — college athletes in Texas can earn from their name, image, and likeness. Status: Legal (state law). Texas has its own NIL statute layered on top of NCAA policy and the House settlement. Confirm the current rules with each school's compliance office.
Can high school athletes earn NIL in Texas?
High-school NIL status in Texas: Not allowed, per State NIL law (SB 1385 / HB 126) + UIL (HS). The association currently restricts it — verify before relying on it. This is a general overview, not legal advice.
Do athletes have to disclose NIL deals in Texas?
The working disclosure threshold here is "Any deal." Under the House settlement, third-party deals at or above $600 at participating schools go to the NIL Go clearinghouse for review; some schools ask for every deal. Confirm your school's exact process.
Can a 17-year-old Texas recruit sign an NIL deal before college?
The statute's § 51.9246(k-1) bars NIL arrangements with prospective student athletes younger than 17 unless they are already enrolled in college, which by negative implication leaves room for athletes 17 and older, and UIL Section 441(b)(3) lets prospective collegiate athletes sign NIL agreements with a postsecondary institution in accordance with state law. Money and school-sport-related promotion while still competing in UIL athletics can still forfeit amateur status. Confirm the current rules with your school's athletic director and the UIL before signing anything.
Can Texas colleges now pay their athletes directly?
HB 126 removed the prior statutory bans on institution-provided NIL compensation and expressly lets institutions follow athletic-association rules and court orders, which is how Texas schools participate in House-settlement revenue sharing. Direct payments still run through the settlement's cap and reporting structures rather than being unlimited. Confirm current terms with the athletic department's compliance office.
What happens if a UIL athlete accepts NIL money tied to their sport?
Under Section 441(c), a student who did not realize the payment was a violation and returns it within 30 days of being told can regain eligibility; otherwise the student is ineligible in that sport for one year, and games played while in violation can be forfeited. The rule is sport-specific. Check with your school and the UIL before accepting anything of value.

Sources

  1. HB 126 (2025) enrolled text amending Tex. Educ. Code § 51.9246 — Texas Legislature
  2. UIL Constitution and Contest Rules, Subchapter M incl. Section 441 Amateur Athletic Status — University Interscholastic League
  3. NCAA name, image and likeness rules and NIL Go disclosure — NCAA