TANF Economic and Financial Education Promotion Act of 2006 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to require a state to use TANF grant funds to establish a program to provide economic and financial education directly for parents and caretakers receiving TANF. Allows a parent's or caretaker's hours of participation in such a program to count as a required work activity.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3863 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3863
To amend part A of title IV of the Social Security Act to require a
State to promote economic and financial education under the Temporary
Assistance for Needy Families (TANF) Program and to allow economic and
financial education to count as a work activity under that program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 7 (legislative day, September 6), 2006
Mr. Akaka (for himself, Mr. Lautenberg, Ms. Stabenow, and Mr. Obama)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend part A of title IV of the Social Security Act to require a
State to promote economic and financial education under the Temporary
Assistance for Needy Families (TANF) Program and to allow economic and
financial education to count as a work activity under that program.
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 ``TANF Economic and Financial
Education Promotion Act of 2006''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress makes the following findings:
(1) Most recipients of assistance under the Temporary
Assistance for Needy Families (TANF) Program established under
part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) and individuals moving toward self-sufficiency operate
outside the financial mainstream, paying high costs to handle
their finances and saving little for emergencies or the future.
(2) Personal debt levels and bankruptcy filing rates are
high and savings rates are at their lowest levels in 70 years.
In 2005, the savings rate was negative. The inability of many
households to budget, save, and invest prevents them from
laying the foundation for a secure financial future.
(3) Financial planning can help families meet near-term
obligations and maximize their longer-term well being,
especially valuable for populations that have traditionally
been underserved by our financial system.
(4) Economic and financial education can give individuals
the necessary financial tools to create household budgets,
initiate savings plans, and acquire assets.
(5) Economic and financial education can prevent vulnerable
customers from becoming entangled in financially devastating
credit arrangements.
(6) Economic and financial education that addresses abusive
lending practices targeted at specific neighborhoods or
vulnerable segments of the population can prevent unaffordable
payments, equity stripping, and foreclosure.
(7) Economic and financial education speaks to the broader
purpose of the TANF Program to equip individuals with the tools
to succeed and support themselves and their families in self-
sufficiency.
(b) Purposes.--The purposes of this Act are the following:
(1) To promote economic and financial literacy among
individuals receiving assistance under Temporary Assistance for
Needy Families programs funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) by permitting
States to include economic and financial literacy education
that is provided directly to individuals as a work activity
under such programs.
(2) To provide individuals receiving assistance under
Temporary Assistance for Needy Families programs funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) with the skills and knowledge needed to effectively
address personal financial matters and to make financial
choices that will lead such individuals toward becoming
financially self-sufficient.
SEC. 3. REQUIREMENT TO PROMOTE ECONOMIC AND FINANCIAL EDUCATION UNDER
TANF.
(a) State Plan Requirement.--Section 402(a)(1)(A) of the Social
Security Act (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end
the following new clause:
``(vii) Establish goals and take action to
promote economic and financial education in
accordance with a program established under
section 404(l) among parents and caretakers
receiving assistance under the program through
collaboration with community-based
organizations, financial institutions, business
entities, the Financial Literacy and Education
Commission established under section 513 of the
Fair and Accurate Credit Transactions Act of
2003 (20 U.S.C. 9702) and departments and
agencies that are members of such Commission,
including the Department of Agriculture, the
Securities and Exchange Commission, and the
Board of Governors of the Federal Reserve
System.''.
(b) Program Requirements.--Section 404 of the Social Security Act
(42 U.S.C. 604) is amended by adding at the end the following new
subsection:
``(l) Economic and Financial Education.--
``(1) In general.--Subject to the succeeding paragraphs of
this subsection, a State to which a grant is made under section
403--
``(A) shall use the grant or State funds that are
qualified State expenditures (as defined in section
409(a)(7)(B)(i)) to establish a program to provide
economic and financial education directly for parents
and caretakers receiving assistance under the State
program funded under this part; and
``(B) may count a parent's or caretaker's hours of
participation in such program as being engaged in work
for purposes of determining monthly participation rates
under section 407(b)(1)(B)(i).
``(2) Requirements.--A State shall ensure that the economic
and financial literacy activities conducted under the program
established under this subsection--
``(A) are accessible to the target population
through curriculum geared to the general literacy level
of the participants;
``(B) provide relevant and practical information to
participants;
``(C) include a direct delivery component; and
``(D) to the extent practicable, are conducted in
conjunction with an asset building program conducted in
the State.
``(3) Collaboration with nongovernmental or nonprofit
organizations encouraged.--In carrying out economic and
financial education activities under a program established
under this subsection, a State is encouraged to collaborate
with nongovernmental or nonprofit organizations with a proven
record of educating the public, especially at-risk populations,
regarding economic and financial literacy.
``(4) Evaluation.--A State shall conduct an evaluation of
the economic and financial literacy program established under
this subsection not less than once every 3 years for the
purpose of--
``(A) monitoring the number of parents and
caretakers served under the program;
``(B) improving program administration;
``(C) facilitating replication and expansion of
best practices;
``(D) assessing behavioral changes of participants;
and
``(E) assessing asset accumulation of participants.
``(5) Definition of economic and financial education.--In
this subsection, the term `economic and financial education'
means education that--
``(A) promotes an understanding of consumer,
economic, and personal finance concepts, including
basic economic concepts such as supply and demand and
opportunity cost, as well as basic financial literacy
concepts such as budgeting and money management,
saving, retirement planning, maintaining good credit,
and the avoidance of predatory lending and financial
abuse schemes; and
``(B) is based on recognized standards for economic
and financial education.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section take effect on October 1, 2006.
(2) Exception.--In the case of a State plan under part A of
title IV of the Social Security Act which the Secretary of
Health and Human Services determines requires State legislation
in order for the plan to meet the additional requirements
imposed by the amendments made by this Act, the effective date
of the amendments imposing the additional requirements shall be
3 months after the first day of the first calendar quarter
beginning after the close of the first regular session of the
State legislature that begins after the date of enactment of
this Act. For purposes of the preceding sentence, in the case
of a State that has a 2-year legislative session, each year of
the session shall be considered to be a separate regular
session of the State legislature.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S9122-9123)
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S9123-9124)
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line