Alabama state representative introduces new bill to allow high school athletes to sign NIL deals

An Alabama state representative is renewing his efforts to bring NIL to the state’s high school athletes with a new bill. It marks the third straight year such a bill has been introduced.

Rep. Jeremy Gray introduced HB 340 on Tuesday – the seventh day of the regular legislative session. It would open the door for Alabama high school athletes to earn compensation for their name, image and likeness, and it was referred to the House committee on education policy.

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Gray filed similar bills during both the 2024 and 2025 legislative cycles. Neither one made it out of committee, and the most recent one fell short in the House committee on economic development and tourism.

Under HB340, high school athletes in Alabama would be able to earn dollars from their NIL so long as it’s not related to athletic performance or used as an incentive to enroll at a specific school. The bill also states athletes, as well as a parent or legal guardian, “shall receive professional guidance as to the potential impacts and consequences of receiving compensation, including collegiate financial aid and tax implications.”

Athletes in Alabama would only be able to sign NIL deals if a parent or legal guardian notifies the principal or athletics director at the athlete’s school, according to the bill. Should it go through, the legislation would take effect Oct. 1, 2026.

Alabama’s athletics governing body, the Alabama High School Athletic Association (AHSAA), prohibits NIL. Rule 1, Section 8 of the 2025-26 handbook states, “An amateur is one who does not use his/her knowledge of athletics or athletic skill for gain.”

What other states say about high school NIL

Alabama is one of a handful of states that still does not allow NIL at the high school level. Hawaii, Indiana and Wyoming are the other three states to outright permit it, according to data from Opendorse. Texas, Arkansas and Mississippi are the three states that allow high school NIL, but with limitations.

In June, Texas Gov. Greg Abbott signed a bill into law to let those athletes cash in, but only if they are at least 17 years of age. A Mississippi lawmaker also introduced a bill this week that would permit NIL deals for high school athletes.

More states are paving the way for high school athletes to sign NIL deals, though. Michigan’s high school athletics association announced new guidance Jan. 27 to allow athletes to enter into deals, and Ohio made a similar rule change in November 2025.