119-hr486

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 486 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 486

 To establish a grant program in the Bureau of Consumer Financial 
 Protection to fund the establishment of centers of excellence to 
 support research, development and planning, implementation, and 
 evaluation of effective programs in financial literacy education for 
 young people and families ages 8 through 24 years old, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 16, 2025

 Mr. Carson (for himself, Mr. Amo, Ms. Barragan, Ms. Brown, Mr. Carter 
 of Louisiana, Mr. Case, Mr. Casten, Mr. Cohen, Ms. Dean of 
Pennsylvania, Mr. Espaillat, Mr. Evans of Pennsylvania, Mrs. Hayes, Ms. 
 Norton, Mr. Johnson of Georgia, Mr. Magaziner, Mr. McGovern, Mrs. 
 McIver, Mrs. Ramirez, Ms. Sanchez, Ms. Scholten, Mr. Soto, Mr. 
 Thanedar, Ms. Titus, and Mr. Torres of New York) introduced the 
 following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on Education and Workforce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
 the committee concerned

_______________________________________________________________________

 A BILL

 To establish a grant program in the Bureau of Consumer Financial 
 Protection to fund the establishment of centers of excellence to 
 support research, development and planning, implementation, and 
 evaluation of effective programs in financial literacy education for 
 young people and families ages 8 through 24 years old, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Young Americans Financial Literacy 
Act''.

SEC. 2. FINDINGS.

 The Congress finds as follows:

    (1) That 88 percent of Americans believe financial 
 education should be taught in schools and 92 percent of K-12 
 teachers believe that financial education should be taught in 
 school, but only 12 percent of teachers actually teach the 
 subject.

    (2) According to a 2020 survey, less than half of states 
 require high school students to take a course on personal 
 finance, and less than 17 percent of high schoolers were 
 required to take a one semester personal finance course.

    (3) For the fourth year in a row, more than one third of 
 surveyed consumers gave themselves a ``B'' when grading their 
 own level of basic financial literacy. Less than one-fifth of 
 Americans gave themselves an ``A''. Most adults feel that their 
 financial literacy skills are inadequate, yet they do not rely 
 on anyone else to handle their finances; they feel it is 
 important to know more but have received no financial 
 education.

    (4) The sudden disruptions caused by the spread of COVID-19 
 are presenting economic challenges with growing consequences. 
 While some factors affecting financial well-being are beyond 
 individual control, financial literacy can help people better 
 manage their finances through times of hardship.

    (5) It is necessary to respond immediately to the pressing 
 needs of individuals faced with the loss of their financial 
 stability; however increased attention must also be paid to 
 financial literacy education reform and long-term solutions to 
 prevent future personal financial disasters.

    (6) There is an urgent need to respond to the COVID-19 
 economic recovery with research-based financial literacy 
 education programs to reach individuals at all ages and 
 socioeconomic levels, particularly those facing unique and 
 challenging financial situations, such as high school graduates 
 entering the workforce, soon-to-be and recent college 
 graduates, young families, and the unique needs of military 
 personnel and their families.

    (7) High school and college students who are exposed to 
 cumulative financial education show an increase in financial 
 knowledge, which in turn drives increasingly responsible 
 behavior as they become young adults.

    (8) The majority (52 percent) of young adults between the 
 ages of 23-28 consider ``making better choices about managing 
 money'', the single most important issue for individual 
 Americans to act on today.

    (9) According to the Government Accountability Office, 
 giving Americans the information they need to make effective 
 financial decisions can be key to their well-being and to the 
 country's economic health. The current pandemic, in which 88 
 percent of Americans say is causing stress on their personal 
 finances, underscores the need to improve individuals' 
 financial literacy and empower all Americans to make informed 
 financial decisions. This is especially true for young people 
 as they are earning their first paychecks, securing student 
 aid, and establishing their financial independence. Therefore, 
 focusing economic education and financial literacy efforts and 
 best practices for young people between the ages of 8-24 is of 
 the utmost importance.

SEC. 3. AUTHORIZATION FOR FUNDING THE ESTABLISHMENT OF CENTERS OF 
 EXCELLENCE IN FINANCIAL LITERACY EDUCATION.

    (a) In General.--The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended--

    (1) by redesignating 

section 1037 as 

section 1038; and

    (2) by inserting after 

section 1036 the following:

``

SEC. 1037. AUTHORIZATION FOR FUNDING THE ESTABLISHMENT OF CENTERS OF 
 EXCELLENCE IN FINANCIAL LITERACY EDUCATION.

 ``

    (a) In General.--The Director of the Bureau, in consultation with 
the Financial Literacy and Education Commission established under the 
Financial Literacy and Education Improvement Act, shall make 
competitive grants to and enter into agreements with eligible 
institutions to establish centers of excellence to support research, 
development and planning, implementation, and evaluation of effective 
programs in financial literacy education for young people and families 
ages 8 through 24 years old.
 ``

    (b) Authorized Activities.--Activities authorized to be funded by 
grants made under subsection

    (a) shall include the following:
 ``

    (1) Developing and implementing comprehensive research 
 based financial literacy education programs for young people--
 ``
        (A) based on a set of core competencies and 
 concepts established by the Director, including goal 
 setting, planning, budgeting, managing money or 
 transactions, tools and structures, behaviors, 
 consequences, both long- and short-term savings, 
 managing debt and earnings; and
 ``
        (B) which can be incorporated into educational 
 settings through existing academic content areas, 
 including materials that appropriately serve various 
 segments of at-risk populations, particularly minority 
 and disadvantaged individuals.
 ``

    (2) Designing instructional materials using evidence-
 based content for young families and conducting related 
 outreach activities to address unique life situations and 
 financial pitfalls, including bankruptcy, foreclosure, credit 
 card misuse, and predatory lending.
 ``

    (3) Developing and supporting the delivery of 
 professional development programs in financial literacy 
 education to assure competence and accountability in the 
 delivery system.
 ``

    (4) Improving access to, and dissemination of, financial 
 literacy information for young people and families.
 ``

    (5) Reducing student loan default rates by developing 
 programs to help individuals better understand how to manage 
 educational debt through sustained educational programs for 
 college students.
 ``

    (6) Conducting ongoing research and evaluation of 
 financial literacy education programs to assure learning of 
 defined skills and knowledge, and retention of learning.
 ``

    (7) Developing research-based assessment and 
 accountability of the appropriate applications of learning over 
 short- and long-terms to measure effectiveness of authorized 
 activities.
 ``
            (c) Priority for Certain Applications.--The Director shall give a 
priority to applications that--
 ``

    (1) provide clear definitions of `financial literacy' and 
 `financially literate' to clarify educational outcomes;
 ``

    (2) establish parameters for identifying the types of 
 programs that most effectively reach young people and families 
 in unique life situations and financial pitfalls, including 
 bankruptcy, foreclosure, credit card misuse, and predatory 
 lending;
 ``

    (3) include content that is appropriate to age and 
 socioeconomic levels;
 ``

    (4) develop programs based on educational standards, 
 definitions, and research;
 ``

    (5) include individual goals of financial independence 
 and stability;
 ``

    (6) establish professional development and delivery 
 systems using evidence-based practices;
 ``

    (7) address the needs of one or more at-risk populations;
 ``

    (8) incorporate sensitivities to specific cultural, 
 linguistic, or demographic characteristics;
 ``

    (9) enhance opportunities for asset building, such as 
 increasing savings for lower income households and investments 
 into the stock, bond, and real estate markets;
 ``

    (10) include an evaluation component to ensure the work's 
 effectiveness in increasing financial literacy or consumer 
 access to appropriate financial products or services, or that 
 the provider has evidence of such effectiveness;
 ``

    (11) promise future replication or can be sustained 
 beyond the program period; and
 ``

    (12) will make effectiveness data (if any) that is 
 generated from the work available to others in the financial 
 education community.
 ``
            (d) Application and Evaluation Standards and Procedures; 
Distribution Criteria.--The Director shall establish application and 
evaluation standards and procedures, distribution criteria, and such 
other forms, standards, definitions, and procedures as the Director 
determines to be appropriate.
 ``

    (e) Content Delivery.--An eligible institution receiving a grant 
under this section shall--
 ``

    (1) ensure that content is delivered in an accessible way 
 to young people, through traditional educational methods and 
 digital methods, including over appropriate social media 
 platforms; and
 ``

    (2) to the extent content is delivered through a website, 
 ensure that the website is user friendly, visually appealing, 
 and doesn't bombard users with dense content that is difficult 
 to comprehend.
 ``

    (f) Grant Amounts.--
 ``

    (1) In general.--The aggregate amount of grants made 
 under this section during any fiscal year--
 ``
        (A) shall be at least $27,500,000; and
 ``
        (B) may not exceed $55,000,000.
 ``

    (2) Termination.--No grants may be made under this 
 section after the end of fiscal year 2029.
 ``

    (g) Report to Congress.--The Director shall issue an annual 
report to Congress containing--
 ``

    (1) a list of grant recipients under this section, 
 including the amount of such grant; and
 ``

    (2) for each grant recipient, a description of the 
 specific populations being served by such grant.
 ``

    (h) 

=== Definitions. ===
-For purposes of this section the following 
definitions shall apply:
 ``

    (1) Eligible institution.--The term `eligible 
 institution' means a partnership of two or more of the 
 following:
 ``
        (A) An institution of higher education.
 ``
        (B) A State or local government agency which 
 specializes in financial education programs.
 ``
            (C) A nonprofit agency, organization, or 
 association.
 ``
            (D) A financial institution.
 ``
        (E) A small organization that is partnering with, 
 but is not itself, a person described under 
 subparagraph
        (A) through
            (D) .
 ``

    (2) Institution of higher education.--The term 
 `institution of higher education' has the meaning given such 
 term in 

section 101 of the Higher Education Act of 1965 (20 
 U.S.C. 1001

    (a) ).''.

    (b) Clerical Amendment.--The table of contents under 

section 1

    (b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is 
amended by striking the item relating to 

section 1037 and inserting the 
following:

``

Sec. 1037. Authorization for funding the establishment of centers of 
 excellence in financial literacy education.
``

Sec. 1038. Effective date.''.
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