DALLAS – The Texas House has given preliminary approval to House Bill 126, a measure that would allow universities in the state to directly compensate student athletes for the use of their name, image, and likeness (NIL).
Under current Texas law, only third-party entities—such as corporate sponsors and athletic boosters—are permitted to pay student athletes for NIL-related activities. Universities themselves are prohibited from making direct payments. HB 126 would lift that restriction, marking a significant shift in how college athletes in Texas could be compensated.
Adapting to a New Era in College Athletics
Supporters of the bill argue that Texas must modernize its approach to stay competitive with other states already revising their NIL legislation in anticipation of broader changes from the NCAA.
“Members, we must pass this bill to keep our university athletic programs competitive,” said Rep. Carl Tepper (R-Lubbock), who authored the legislation. “Other states are already updating their NIL laws. I look at it as an opportunity for these athletes—they’re finally being given consideration for their hard work, their natural abilities, and their performance.”
Concerns Over Equity and Athlete Protection
While there is strong support for the bill, not all lawmakers are fully on board. Some raised concerns about potential disadvantages for smaller schools with fewer financial resources.
“My concern, Rep. Raymond, is if we enter into this bill, you won’t see any more Cinderella stories,” said Rep. Mitch Little (R-Lewisville). “You’re not going to see Abilene Christian, Rice, or Baylor be able to compete at those levels because they simply won’t have access to the same capital as the state’s larger universities.”
Others voiced worries about the financial well-being and long-term protection of the student athletes themselves.
“I can tell you from first-hand knowledge that many of these players are being offered millions of dollars,” said Rep. Barbara Gervin Hawkins (D-San Antonio). “My concern is protecting our youth—from back taxes, poor financial decisions, and family disruptions.”
Rep. Hawkins clarified that while she supports athlete compensation in principle, she believes the state must establish safeguards to ensure student athletes are set up for long-term success.
Next Steps
With preliminary approval secured, HB 126 now awaits final passage in the House, which could come later this week.
