Texas House Approves Bill to Pay Student Athletes Directly

The Texas House has preliminarily approved House Bill 126, which would allow universities to directly compensate student athletes for their name, image, and likeness (NIL), a significant shift from current law that restricts payments to third-party entities. Proponents, including bill author Rep. Carl Tepper, argue this change is essential for Texas schools to remain competitive amid evolving NCAA regulations, while opponents, such as Rep. Mitch Little, express concerns that it may disadvantage smaller universities and potentially reclassify athletes as employees, exposing schools to federal labor laws. Lawmakers also raised alarms about the financial protection of student athletes, with Rep. Barbara Gervin Hawkins highlighting risks related to sudden wealth. The bill is set for a final vote in the House before moving to the Senate, where it may face more scrutiny. Supporters believe passing the bill is crucial for attracting top-tier talent, while critics worry it could undermine the competitive balance in college sports across Texas.