Texas Gov. Greg Abbott Signs New NIL Bill Into Law

The Texas A&M Aggies will have to contend with a new state NIL law.

A Redbud tree blooms near the Texas State Capitol Building in downtown Austin, March 8, 2025. | Sara Diggins/American-Statesman / USA TODAY NETWORK via Imagn Images

Gov. Greg Abbott signed a bill into law on Thursday morning that will dramatically alter NIL regulations in the Lone Star State, and the Texas A&M Aggies best take notice.

According to Nick Schultz of On3, HB126 will allow colleges to directly pay athletes, putting Texas in line with the recent House v. NCAA settlement. It will also allow high school athletes age 17 or over to sign NIL deals, whereas only collegiate athletes could previously.

State Rep. Brandon Creighton sponsored the bill, with the state House and Senate both signing it on Sunday. The law is effective immediately following Abbott's signing.

Texas A&M Aggies athletic director Trev Alberts looks on in the first half against the Houston Cougars. | John David Mercer-Imagn Images

“Unless a prospective student-athlete younger than 17 years of age is enrolled at an institution of higher education, an individual, corporate entity, or other organization, including an institution to which this section applies, may not enter into an arrangement relating to the athlete’s name, image, or likeness with the athlete or with an individual related to the athlete by consanguinity or affinity,” the law states.

Under the House v. NCAA settlement, schools will be able to pay athletes up to $20.5 million starting in 2025-26, the first school year of a 10-year agreement. Schools will also be able to participate in revenue sharing.

Recently, Aggies head football coach Mike Elko shared his criticism of the House v. NCAA settlement, though he mostly took issue with the timing of the whole ordeal.

I couldn’t imagine an NFL team getting halfway through the offseason and deciding to change their salary cap rules,” Elko said. “That’s what I guess we’re doing.”

“What are the professional models, and what do they seem to look like? It certainly seems as though free agency happens once, not twice, and it happens right after the season before you start practicing. That seems to be the landscape for every single professional league across the world. So why we believe that that should not be how this works, it is hard to get your head wrapped around."