Young Americans Financial Literacy Act

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

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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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