(1)

The Federal Government, through title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), provides substantial financial assistance to institutions of higher education, including institutions that sponsor intercollegiate athletics programs.

(2)

Intercollegiate athletics in the United States have historically been organized and promoted as competition among student-athletes who are not simultaneously under contract to compete professionally in the same sport.

(3)

Permitting an individual under contract to a professional sports team, league, club, or organization in a given sport to also compete as a student-athlete in that same sport at an institution receiving Federal student assistance blurs the distinction between amateur and professional competition and may disadvantage student-athletes who are not also under professional contract.

(4)

It is appropriate for Congress to condition an institution’s continued eligibility to participate in title IV programs on the institution’s not permitting such dual participation, in the same manner Congress has conditioned title IV eligibility on other institutional conduct unrelated to the direct administration of student financial aid.

(5)

Athletics department officials who knowingly direct, lead, or carry out the recruitment or signing of a professional athlete in violation of this Act bear individual responsibility for circumventing the eligibility condition established by this Act that is distinct from, and in addition to, the institution’s own responsibility under its program participation agreement.

(1) Covered institution

The term covered institution means an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) that has entered into a program participation agreement under section 487 of that Act (20 U.S.C. 1094).

(2) Covered sport

The term covered sport means a sport in which a covered institution sponsors a varsity intercollegiate athletics team.

(3) Intercollegiate athletics competition

The term intercollegiate athletics competition means participation, as a member of a varsity team representing a covered institution in a covered sport, in organized practice or competition against another institution of higher education, whether or not the individual receives athletically related student financial assistance.

(4) Professional sports contract

(5) Professional athlete

The term professional athlete means, with respect to a covered sport, an individual who is a party to a professional sports contract for that covered sport and who has not rescinded that contract in accordance with section 5(a).

(6) Covered athletics official

The term covered athletics official means, with respect to a covered institution, an individual who, as an employee or agent of the covered institution (including a head coach, assistant coach, athletic director, general manager, or other athletics department staff member), has authority to recruit prospective student-athletes, extend an offer of athletically related student financial assistance, sign a prospective student-athlete to a National Letter of Intent or substantially equivalent instrument, or certify the eligibility of a student-athlete to compete in intercollegiate athletics competition, or who knowingly directs or authorizes another person to take any such action.

(7) Secretary

The term Secretary means the Secretary of Education.

(a) In general

Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended—

(b) Guidance and verification process

The Secretary shall issue guidance establishing—

(c) Enforcement

A violation of paragraph (30) of section 487(a) of the Higher Education Act of 1965, as added by subsection (a), shall be treated as a violation of a program participation agreement for purposes of part G of title IV of that Act (20 U.S.C. 1094 et seq.), and shall be subject to the limitation, suspension, and termination procedures, and other remedies, available to the Secretary under that part.

(a) Rescission

An individual who has entered into a professional sports contract for a covered sport is not a professional athlete for purposes of this Act with respect to that covered sport if, before receiving any compensation under the contract and before rendering any athletic services under the contract, the individual—

(b) Transition for current competitors

The amendment made by section 4(a) shall not apply with respect to an individual who, as of the date of enactment of this Act, is both a party to a professional sports contract for a covered sport and is competing in intercollegiate athletics competition in that covered sport, until the first day of the first academic year of the relevant covered institution that begins after the date of enactment of this Act.

(1)

restrict the eligibility of an individual to be selected in, or to negotiate the terms of a potential contract arising from, a draft or other selection process conducted by a professional sports team, league, club, or organization;

(2)

affect the eligibility of an individual to receive compensation for the use of the individual’s name, image, or likeness, except to the extent such compensation is paid pursuant to a professional sports contract as defined in section 3;

(3)

limit the authority of a covered institution, or of an athletic association or conference of which a covered institution is a member, to adopt or enforce eligibility rules more restrictive than the requirements of this Act;

(4)

create a private right of action against a covered institution, the Secretary, or any other person; or

(5)

affect the availability of prosecution under any other applicable Federal criminal statute, including sections 201, 224, 1001, 1341, and 1343 of title 18, United States Code.

(a) In general

Chapter 11 of title 18, United States Code, is amended by adding at the end the following:

228. Recruitment or facilitation of ineligible professional athlete participation in intercollegiate athletics

(a) Offense

It shall be unlawful for a covered athletics official knowingly to recruit, offer to enroll, sign to a National Letter of Intent or substantially equivalent instrument, certify the eligibility of, or otherwise cause to compete in intercollegiate athletics competition, an individual whom the official knows to be a professional athlete, if—

(1)

the recruitment, offer, signing, certification, or other act is in or affecting interstate or foreign commerce; or

(2)

the covered institution by which the official is employed, or for which the official acts as an agent, receives, in the 1-year period before the offense, benefits in excess of $10,000 under a Federal program involving a grant, contract, subsidy, loan, guarantee, insurance, or other form of Federal assistance.

(b) Penalty

A person who violates subsection (a) shall be fined under this title, imprisoned not more than 5 years, or both.

(c) Enhanced penalty

A person who violates subsection (a) shall be fined under this title, imprisoned not more than 10 years, or both, if the violation was undertaken for financial gain or was part of a pattern of 2 or more violations of subsection (a).

(d) Affirmative defense

It is an affirmative defense to a prosecution under this section that the defendant reasonably relied on a written determination issued under section 4(b)(2) of the Collegiate Amateur Athletics Protection Act of 2026 that the individual was not a professional athlete, and that the determination had not been withdrawn or superseded at the time of the conduct at issue.

(e) No institutional liability

This section does not impose criminal liability on a covered institution as an organization. Liability under this section attaches only to an individual covered athletics official who violates subsection (a).

(f) Venue

A prosecution under this section may be brought in any judicial district in which the covered institution involved is located or in which any act in furtherance of the offense occurred.

(g) Definitions

In this section, the terms covered athletics official, covered institution, professional athlete, and intercollegiate athletics competition have the meanings given those terms in section 3 of the Collegiate Amateur Athletics Protection Act of 2026.

(b) Clerical amendment

The table of sections for chapter 11 of title 18, United States Code, is amended by adding at the end the following:

(a) Funding condition

Except as provided in section 5(b), the amendment made by section 4(a) shall take effect on the first day of the first academic year of a covered institution that begins after the date of enactment of this Act.

(b) Criminal penalties

Section 7, and the amendments made by that section, take effect on the date of enactment of this Act, and apply only to conduct occurring on or after that date.