The College Athlete Economic Freedom Act establishes comprehensive federal rights for college athletes to market their name, image, and likeness (NIL). It explicitly prohibits institutions of higher education and intercollegiate athletic associations from enacting or enforcing rules that prevent athletes from monetizing their NIL, either individually or as a group. This foundational provision aims to ensure athletes have economic freedom regarding their personal brand.

The bill further prevents institutions from colluding with other entities to limit athlete compensation for NIL use, unless such limits result from negotiations with a collective representative. It also safeguards the right of college athletes to form or recognize collective representatives for negotiating NIL contracts and group licensing agreements. Institutions are prohibited from using a group's NIL for promotions without obtaining a license and notifying the group of revenue details. Importantly, receiving NIL compensation will not negatively impact an athlete's eligibility for or the amount of their grant-in-aid.

To ensure fairness, the Act mandates that any institutional support for NIL marketing must be made available and accessible to all college athletes within an athletic program, without discrimination based on gender, race, or participating sport. Institutional NIL collectives, which support athletic interests by facilitating or funding NIL agreements, are required to register with the Federal Trade Commission (FTC). These collectives must also report detailed data on NIL agreements, disaggregated by gender, race, and sport, to demonstrate non-discriminatory practices.

The legislation also addresses international college athletes, amending immigration law to allow them to engage in NIL activities without jeopardizing their visa status. It provides employment authorization for these activities and clarifies that participation in intercollegiate athletics, even if deemed employment, will not violate their nonimmigrant status. Enforcement of the Act falls under the FTC, treating violations as unfair or deceptive practices, and includes a private right of action for aggrieved individuals.

Furthermore, the bill declares violations of its provisions to be a per se violation of the Sherman Act, providing robust remedies. It establishes federal preemption over state laws concerning college athletes' NIL contracts, though states can still regulate athlete agents. Finally, the Act authorizes grants for market analysis of NIL monetization, with a focus on identifying and addressing disparities based on gender, race, and sport, and clarifies that scholarships remain unaffected.