Senate And Ted Cruz Back Bill To Cap Athlete Pay At $49 Million
The Senate passed the Protect College Sports Act in a 77-22 vote, according to the New York Post. This law grants the NCAA a limited antitrust exemption to enforce new rules on athlete pay. It sets a hard cap on direct payments to athletes at around $49 million per school. This is the first time the federal government has set a dollar limit on college sports revenue sharing.
Sens. Ted Cruz and Maria Cantwell co-authored the bill to stop the chaos in college athletics. The measure builds on a 2025 settlement that allowed schools to share revenue directly with players. Now, the Senate has stepped in to create a stable framework for the future. The House is expected to take up the bill after the November midterm elections, per the Washington Times.
The new law raises the payment limit from the $21.5 million cap established in the 2025 settlement. Schools can now pay athletes more, but they cannot go over the $49 million ceiling. This rule stops institutions from circumventing limits by hiding money in other accounts. According to the Daily Caller, Division I institutions must provide out-of-pocket medical coverage for sports injuries under the bill..
Chris Murphy is running for president, so the only thing he cares about is making every trial lawyer in America happy.
He wants every college to be sued nonstop. He wants no rules whatsoever. He wants every college athlete turned into an employee and a union member to give union… pic.twitter.com/3PqSIGzmI5
— Senator Ted Cruz (@SenTedCruz) September 16, 2026
Transfer rules are now standardized so athletes can move once without sitting out a year. However, the five-year eligibility clock starts when they turn 19 or enroll full-time. Lobbyists spent at least $31 million pushing for this measure, according to OpenSecrets data cited by the Daily Caller. Over 60 colleges, including Notre Dame and Ohio State, lobbied heavily for the bill to pass.
Senate Commerce Committee Chairman Ted Cruz argued that the current system is broken. He wrote on X that "College sports is at a breaking point," according to the New York Post. Cruz thinks the legislation will bring order back to a system fractured by excessive litigation and insufficient rules. He sees this as a way to protect the underdog and keep teams in the game.
Not everyone agreed with the outcome. Of the 22 no votes, 19 came from Democrats, including Senate Minority Leader Chuck Schumer. Sens. Bernie Sanders, Rick Scott, and Rand Paul also voted against the measure. Senate Majority Leader John Thune celebrated the passage, saying it would "restore stability in college athletics," per the Daily Signal.
College sports is at a breaking point.
My bipartisan Protect College Sports Act would restore order to a system being torn apart by too few rules and too much litigation. It establishes national standards for transfers, eligibility, tampering, inducements, and revenue sharing… pic.twitter.com/13hKqPRD8b
— Senator Ted Cruz (@SenTedCruz) September 22, 2026
I see this as a necessary step to save the tradition of college sports. Without these rules, the system risks collapsing under the weight of endless lawsuits and unlimited pay. The bill protects scholarships, roster spots, and women's sports from being cut. As Cruz noted, "Those stories only happen if those teams still exist," according to the Washington Examiner.
The bill now moves to the House of Representatives for a final vote. Should this measure pass, over 500,000 college athletes nationwide will be impacted. Students must report any NIL earnings exceeding $600 to their school as mandated by the law. This ensures transparency while keeping the focus on education and fair play.
Senator Cruz called it a "monumental day for college athletics" after the vote passed. He stated the Senate voted to protect the "hundreds of thousands of student athletes currently competing." The next step is clear: the House must act to make this federal law real. The question now is whether they will follow the Senate's lead to fix the system.
