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      [Legislation Hub](/high-school-nil/legislation)    [Alabama](/alabama/legislation)    HB 340      Pending  HB 340
========

 Alabama High School NIL Act

 [ Contact for Updates ](/contact) [    Alabama Overview ](/alabama/legislation)

  Introduced

January 13, 2026

Sponsor

Rep. Jeremy Gray

Committee

House Education Policy Committee

Vote Deadline

2026 Session

Effective Date

October 1, 2026 (if passed)

  Summary
-------

 Third attempt by Rep. Jeremy Gray to allow high school NIL in Alabama. This bill would permit Alabama high school athletes to monetize their name, image, and likeness while maintaining strict safeguards against school involvement and pay-for-play arrangements.

   Key Provisions
--------------

 ### NIL Permitted

Would allow high school athletes to monetize their name, image, and likeness while maintaining amateur status.

### No School Logos

Athletes cannot use school logos, mascots, or trademarked materials in NIL deals.

### No Pay-for-Play

Compensation cannot be tied to athletic performance, wins, or playing time.

### Written Contracts

All NIL agreements must be in writing with parental consent for minors.

### School Notification

Parent or legal guardian must notify the principal or athletics director before athlete can sign NIL deals.

### School Neutrality

Schools and coaches cannot arrange, facilitate, or approve NIL deals.

### Financial Guidance Required

Athletes and parents must receive professional guidance on impacts including collegiate financial aid and tax implications.

    Current Law
-----------

Alabama currently prohibits high school NIL through AHSAA rules. Despite being a college NIL pioneer (HB 404 signed April 2021, repealed via HB 76 in February 2022), high school athletes remain barred from NIL compensation.

  Potential Impact
----------------

 If passed, Alabama would finally allow high school NIL after two failed attempts (2024 and HB 489 in 2025). The October 1, 2026 effective date would give schools time to prepare compliance systems.

   Official Resources
------------------

  [ Track HB 340 on Alabama Legislature    ](https://alison.legislature.state.al.us/) [ AHSAA Official Website    ](https://www.ahsaa.com/)

    Stay Informed on Alabama NIL
------------------------------

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